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  2. Finance, Insurance
  3. Sunday, June 10 2012
What is the hidden cost and charges in New Car Loan payable to the bank but not communicated to customer. Also - how much is the Pre payment Penalty to pay for closure of car loan
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Hello Pratima,

Any charge remain untold by the respctive banker or bank exec before disbursement remains as hidden charge. :) Any how pl find below the complete list of charges to be paid apart from Interest Rate.

Pre Disbursement Cost/Charges
1) Loan Processing Fees (Maximum Amount is Rs. 5000, normally 1% of loan amount or whichever is lower)
2) Applicable Stamp Duty Charges (Approx Rs. 300-500, depending on state)
3) Documentation Cost (Generally Rs. 100-150)
4) PDD Charge (generally charged by dealer as Rs. 300)

Post Disbursement of Loan
1) Bounced Cheque (Rs. 400 + Service Tax in Private Banks)
2) Interest Charge on Delayed Payment - (very high @ 24%/annual interest)
3) Foreclosure Charges (Normally 5%+Service Tax)

Trust, it solves


  1. more than a month ago
  2. Finance, Insurance
  3. # 1
Full form of PDDs Accepted Answer
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full form of PDDs
  1. more than a month ago
  2. Finance, Insurance
  3. # 2
Admin Accepted Answer
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It means PDD - Post Disbursement Documents
Effectively an internal term used by Bank to
> RC with due HP
> Insurance with HP
> Final Invoice with HP
  1. more than a month ago
  2. Finance, Insurance
  3. # 3
Jackson bino Accepted Answer
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If a car loan finance co. Charging overdue charges wrongly i can approach legal authorities or not. At the time of agreement signed the document not read or not explained by the executive.the emi is paying on time.
  1. more than a month ago
  2. Finance, Insurance
  3. # 4
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