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Choto Cheeta
Rebooting
use RTI and ask ICICI for an writen explanation that why ICICI delivertlly tried to cheat u via this statement
wait for their writen explanation and then file a law suite
phreak0ut
The Thread Killer >:)
Then where should have been this posted?
ranjan2001
Cyborg Agent
Seems u r taking the loan for the 1st time.
18% Per Annum so if u take a loan for 5 years it will be 18x5=90% of ur total amount in 5 years.
So u take Rs10000/- u will pay 19000/- back in 5 years.
BTW I always failed in my maths class but somehow mangaed to remember that whenever any thing is quoted in % its always per year only by default.
enticer86
Stay Silent!
NOPE
Yeah, whatever is quoted in % terms is by default in p.a. terms, but ur calculations are wrong. One is not supposed to add the rate, coz see the thing is he is paying the principal amount every year as well. So that has to be reduced from the amount of loan taken.
See I didn't understand you question. Pls do tell if u were payin the installment at the beginning of the month or at month end.
According to my calculations:
You paid: 1475*30months = 44250
Loan amount = 31500
Interest paid = 44250-31500 = 12750
NucleusKore
TheSaint
I saw this thread a little late I think. I have a two wheeler loan from Canara Bank. Its called Doctor's choice, where I get to buy equipment for clinic expenses. It may include medical equipment, vehicle, laptop, etc. The loan is given at 8.5% diminishing interest for a two year tenure or 3% diminishing interest for a three year tenure. If you have any doctor friends, ask them to take the loan and you stand guarantor. That way he will feel safe and won't have to worry. You will pay the loan on his behalf, plus he may claim depreciation for his income tax benefit Your risk is that the vehicle will be registered in his name.
Your risk is that the vehicle will be registered in his name.ranjan2001
Cyborg Agent
& his bonus will be that if the vehicle gets involved in an accident he will have to be in police station & you still can bail him out
victor_rambo
हॉर्न ओके प्लीज़
lol lol loling& his bonus will be that if the vehicle gets involved in an accident he will have to be in police station & you still can bail him out
NucleusKore
TheSaint
& his bonus will be that if the vehicle gets involved in an accident he will have to be in police station & you still can bail him out
That's a good one, thanks for the insight
*farm3.static.flickr.com/2180/2122604477_1f3f245df7_o.png
Anyway if you have comprehensive insurance no problem.
ranjan2001
Cyborg Agent
comprehensive insurance (injury/death) wont help you getting bail.
My Father bought me a 2 wheeler & the dealer requested it to be in my name though my father was paying the loan, the reason quoted was if the vehicle gets involved in accident then I go to jail & can be bailed out by my father but not vise versa bcoz I was not a tax payee that time.
So you can have ur Dr friend take a loan for u but the vehicle should be in ur name.
OP
agnels
Live The Dream!
I am paying the installment on 5th every month. This is how they calculate
(31500*2.5*18) /100=14175
one emi is free ie ~= 1425
14175-1425=12750
31500+12750=44250
44250/30=1475
The problem is that if you are paying back the loan after you pay the 1st emi your balance (read: loan amount) should reduce ie the balance loan amount will come to 30765. This you will get when you open the loan amortization sheet in ms excel 2003. So you have to calculate the emi on the reduced balance not 31500. According to excel annual interest rate comes to 28.2%. I got 36% when i calculated with nokia 5610 loan calculator.
So can they charge emi by simple interest rate method or a reducing interest rate method, which is done for 4w loans.
NucleusKore
TheSaint
@ranjan2001.....Ok, legal complications, didn't know about it. I wonder if the bank will allow registration of the vehicle in another's name? I have the loan and vehicle in my name, and anyway I'm driving it so no problems.
ranjan2001
Cyborg Agent
1st understand this
EMI= equated monthly installment
which on the face is equated but internally it consist of principal+interest amount.
The hidden fact in EMI is that its charging more interest & less principal in the begnining as it moves down this ratio keeps reducing & the last EMI will have more principal & less interest.
This is totally in favor of the banks & not in our favor, if you ever default to pay EMI, u will be surprised that according to the bank u need to pay a lot, they wont just ask for EMI, they will ask the EMI principal which is less & interest which is more.
Best thing is whenever u take loan at whatever interest just remember not to listen the marketing talk, .................just ask them flat rate of interest all inclusive of file charge (if any) & service tax, this will give u a clearer picture as to how much u will be paying.
any offer which they quote u as daily reducing is not in ur favor bcoz they know u cant calculate it on daily basis thus its a kind of fleecing the consumer in name of reducing rate of interest.
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