In case you plan to purchase a car or even have been harbouring this wish to buy a car for some time, you may not need to wait for more as you can apply for a car loan at State Bank of India (SBI) as it offers you finance at the lowest interest rates. At SBI, the new car loan interest rates start from as low as 7.75 per cent per annum if you apply through YONO otherwise starts from 8.00% per annum. Finally, SBI also requires minimal paperwork and quick disbursement of the loan.
|Features||New Car Loan Scheme||Used Car Loan Scheme|
|Interest Rates||7.70% p.a. onwards||9.50% p.a. onwards|
|Loan Tenure||Up to a period of 7 years||Maximum of 5 years|
|Processing Fee||0.20% of the loan amount plus GST onwards. Maximum of Rs.3,750 and minimum of Rs.5,00||0.20% of the loan amount plus GST. Maximum of Rs.5,000|
|Loan Amount||Up to 90% of the car’s on-road price|
SBI Car Loan interest rate is based on the following factors –
|Factors Determining SBI Car Loan Interest Rate|
|Loan amount||Mostly, any bank tends to offer a new car loan at a lower interest rate in case the principal amount is higher. Also, it should be noted here that SBI offers finance up to 85 per cent of the on-road price of a new car.|
|Your Salary||Those with a high salary get a car loan at a lower interest rate. SBI decides the new car loan interest rate as per your net monthly income|
|Employer Category||Employer category of the borrower is another factor that affects the SBI car loan interest rate. SBI maintains a list of company categories whose employees get a car loan at lower interest rates. Hence, those working in companies placed in the higher categories get a car loan at a lower rate of interest|
|Relationship with the Bank||SBI offers special rates, offers and charges to the existing account holders of the bank. Those with clean repayment history get loans at a lower rate.|
|Loan Tenure||SBI offers a loan tenure of up to 7 years.|
|Repayment Capacity||SBI takes note of the repayment capacity of the customer through his CIBIL score as it has all the details of previous loans|
The table that we have given below shows all the eligibility criteria for getting a SBI car loan.
|Eligibility Criteria||Eligibility Details|
|Age||21 years – 65 years|
|Minimum Annual Income||Salaried: Rs 3 Lakhs |
Self Employed Professionals: Rs 4 Lakhs
Self Employed Businessmen: Rs 4 Lakhs
|Minimum Credit Score||700 and above|
|Loan Tenure||7 years|
|Loan to Value Ratio||85% of on-road price|
The eligibility to get an SBI car loan is based on multiple factors but the most important of them all is your capability to payback. The factors on which the eligibility depends include –
SBI Car Loan EMI is a fixed amount that you need to pay to the bank every month as partial repayment of your car loan. At present, the lowest EMI that is offered by SBI is Rs. 1,559 per lakh at an interest rate of 9.25%. The SBI car Loan EMI is based on the below factors:
|Factors Determining EMI|
|Rate of interest||This has a direct relation with your EMI. Higher the rate of interest, higher will be the EMI.|
|Loan tenure||Higher the loan tenure, lower will be the EMI. The vice versa also holds true.|
|Loan Amount||Of course, another factor that has a direct relation with your EMI is the loan amount. More the amount you borrow, higher will be the EMI.|
Once you’ve decided the new car loan amount you require and also get to know SBI car loan interest rate, you can easily calculate your EMI based on the loan tenure using the SBI car loan EMI Calculator, which is a free feature offered by SBI to all its loan applicants. Also, it must be noted here that one should make use of the EMI to pay back the borrowed amount. Using the EMI calculator, just fill in the loan amount, the rate of interest and the loan tenure and you’ll be immediately told the EMI you’ll need to pay. If the EMI amount displayed by the calculator is displayed is different from the one told by the agent, you should re-check the calculation yourself using the following equation –
E= P. r. (1+r)n/[(1+r) n -1]
P is the principal amount (loan amount)
r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
n is the tenure of loan in months
E represents the monthly payment or EMI
For instance, in case you take a loan of Rs 7 lakh for a tenure of 5 years at a rate of interest of 9.25 per cent, you will have to pay an EMI of Rs. 14,616 for 5 years.
|SBI Car Loan Fee and Charges|
|Foreclosure Charges||These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. SBI allows prepayment of vehicle loan after paying 1 EMI with prepayment Nil.|
|Processing Fee||SBI asks for a processing fee of 0.51% of loan amount. Min. Rs. 1020 and Max. Rs 10,200 with applicable service tax|
State Bank of India (SBI) allows you to transfer car loan balance from another bank. However, this depends on your eligibility and hence, you need to visit the nearest branch of SBI and talk about this to the officer handling the car loan department. Once you meet him, you need to divulge the details and initiate the paperwork for transferring the car loan balance in case you are eligible.
Other than allowing you to transferring your car loan balance, you can also top up the car loan in case you are eligible. Even for this, you’ll need to visit the nearest branch of SBI and talk about this to the officer handling the car loan department. Once you meet him, you need to divulge the details and initiate the paperwork for the top-up of the car loan balance in case you are eligible.
|Types of Employee||Documents|
|Salaried Employees||Filled up loan application form2 Passport Size PhotoCopy of Income Tax PAN, Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN/Quotation of car/Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), PassportIncome Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debitR.C of Vehicle and Insurance of Car|
|Self-Employed||Filled up loan application form2 Passport Size PhotoCopy of Income Tax PANIdentity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PANQuotation of carResidential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), PassportIncome Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debitR.C of Vehicle and Insurance of Car|
The SBI car loan interest rate stays the same throughout the loan tenure. However, the interest rate of the loan is based on a lot of factors. The SBI car loan interest rates for both new and used car loans range from 7.7% per annum to 11.20% per annum. The interest rate at which you get the car loan is based on the below factors:
|Salary of the applicant||In case you have a high salary, you will possibly get a loan at a lower interest rate. It is important to consider your debt-to-income ratio while applying for a car loan. This means that according to the lender, you will not face any adversities during the repayment of the loan.|
|Loan amount chosen by the applicant||The car loan amount that you choose will determine the interest rate you are eligible for. Higher the amount of loan, lower will be the rate of interest|
|Credit score of the applicant||Your credit history plays an important role in helping you easily get your car loan application approved. You must have a credit score of at least 750 in order to get a car loan from SBI.|
|Car type chosen by the applicant||Not many know this but even the kind of car you plan to buy from the car loan goes on to play an important role in determining the interest rate. For example, a small car might attract less interest rate than an SUV.|
|Loan tenure selected by the applicant||Longer the tenure, lower will be the rate of interest. The vice versa also holds true|
|Applicant’s relationship with the bank||If you are borrowing a car loan from a bank that you share a good credit history with, it is likely that you will get a reasonable interest rate.|
A: You can get a new car loan from SBI at an interest rate in the range of 8.00%to 8.70%.
A: The lowest EMI per lakh for SBI car loan is Rs 1,363, calculated at an interest rate of 8.00% and for a loan tenure of 7 years.
A: You can repay your SBI car loan in a flexible period of 7 years.
A: SBI charges a processing fee of 0.51% of loan amount Min.₹ 1,020 and Max. ₹ 10,200 with applicable service tax.
A: SBI offers you 85% of on-road price of car as loan.
A: Yes, age is an important criteria for SBI car loan eligibility. SBI offers car loan to those who are at least 21 years old at the time of applying for car loan and not more than 65 years old at the time of maturity.
A: No, there are no prepayment charges on SBI car loan.
A: You can add your spouse as co-applicant when applying for SBI car loan as it will increase your car loan eligibility
A: The net income of the applicant/co-applicant on a yearly basis should be at least Rs.3 lakh.
A: Salaried professionals should submit the following documents along with SBI Car Loan application form:
– Account statement for the preceding six months.
– Two passport size photographs.
– Identity proof
– Proof of residence
– Proof of income which can include Form 16 or latest payslips.
– Income Tax Returns for the preceding two years.
A: The maximum amount that can be borrowed by the above-mentioned entities is 4 times their Net Profit or Gross Taxable Income as per the ITR rules after the addition of depreciation and repayment of all loans.
A: On-road price includes –
– Insurance and extended warranty
– Cost of accessories
– Annual maintenance contract
A: Yes, an optional SBI Life Insurance cover can be purchased by car loan applicants.