stinaikar

Usually the credit cards often come out with temporary offers say a 2-3% rate for 6 months. You go for this offer. After 6 months, you hope another card will come up with an offer of 2-3% for another 6 months. You pay off the first card with the second and hope a third card will come up with a 2-3% offer in 6 months time. Its an extremely risky approach because if you don't find conveniently timed offers, you could remain stuck with higher rates of 18-20%. However, the low rates in the US over the last couple of years have enabled some people to do this succesfully for short periods of time.

dheerajg77

its personal loan with my car under property collateral

gharondabhai

Yes, you basically have 5-6 credit cards and it's juggling. The interesting part is, 18% interest looks scarry on paper, but if you actually calculate the absolute interest amount for 1 month, it is less than $100. But you really need a Jigar to do this. According to him, banks always has those schemes. Those schemes are not advertised, you need to visit the branch and negotiate. Rate is incredibly low, sometime less than 1%.

gharondabhai

First part is explained in another post.

Regarding second part, just few days back one of my friend took personal loan from SCB at 6.68% AR.

He applied for 30K and was sanctioned 20K for 3 years.

How interest is calculated is quite interesting. The sanctioned 20K included some admin charge, so the guy got around 19K in hand. Interest calculated is simply 20K*3yr*6.68/100.
So his EMI is (20K + 20K*3*6.68/100)/36

This makes his Effective Interest in the tune of 12-14% depending on how you calculate (daily or monthly reducing)

This is not too bad compared to Indian Home Loan rate and the volatility on that.

nsandip

Dheeraj,

Can you please let me know which Credit Union did u approach? I know limit on Personal Loans in very low. Did u encounter that problem?

dheerajg77

Georgia own credit union, but I have to give my car papers - bhai car girvi rakhni padi

rajsinghva

Any bank doing NRI self emplyed loans in sonipat or delhi

Jhashank RCA

Hi rajsinghva,

Very few banks give loans to self-employed NRIs. As far as i am aware, in the private sector, only HDFC is issuing loans to NRI self employed people on a regular basis. Few banks may do it as an exception but only if client is very high profile or HNI. Not sure if SBI does it, but even if they do, the process will be very painful and i recommend HDFC anyday.

Cheers.