[Resolved] SBI Car Loan — Interest rate and hidden charges
Beware of taking car loan / any from SBI.....I have taken a loan from Statebank of India with a wrong commitment on interest rate on 30th Jan 2006, the officer told the interest rate is 8.5% fixed and signed papers without checking the clause, be ware of SBI in this matter. All car loan in the market is available at Fixed rate for the entire tenor.
I have never got any communication or sanction letter, even the change in rate supposed to be informed to the consumer which is a Big concern with the MASS BANK like SBI, they dont have any system but a bunch of 50+ aged people. SBI has to immediately change these people and also
Three years later, I came to know that the Car loan is at a floating rate and not fixed....when I checked with the bank that the car loan is generally a depreciating product and the entire car loan provider is giving the rate on a FIXED term for the complete tenor. The answer is we have not such options, this is one part of it.
The second and interesting part is that, as per SBI, the rate mentioned in the arrangement letter / sanction letter which never came to me is 1.75 less from SBAR (Prime Lending Rate) Based on my complaint with Banking Ombudsman the there was a dispute even there where instead of 1.75% less from SBAR they have given only 0.25 less from SBAR where the SBI is looting cosumers money which is a real concern. these are never disclosed to any one in the market / customer.
Note: due to the floating rate and the EMI is constant, there will be an overdue if the rate goes up and the same will also reflect in CIBIL, which is my case
Beware of taking loan through SBI and periodicaly check whether SBI is charging as per the promise, I have lost 10000/- every year and now I have completed the 4th year due to the above reason I have closed the loan.
Complaint marked as Resolved Aug 14, 2020