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SBI Car Loan

Team CARS24
editor

State Bank of India (SBI) provides the general public with a wide range of car loans that can suit the specific needs of most kinds of borrowers. The leading banking organization provides car loans at interest rates ranging from 7.75% to 11.20% and with tenure of up to 7 years. Another salient feature of SBI car loans is that it charges one of the lowest interest rates. Some other features of an SBI car loan include –

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 percent 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.

FeaturesNew Car Loan SchemeUsed Car Loan Scheme
Interest Rates 7.70% p.a. onwards9.50% p.a. onwards
Loan Tenure Up to a period of 7 yearsMaximum 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 Schemes

Below, we have provided a list of different types of SBI car loans that are on offer:

  • SBI New Car Loan Scheme
  • SBI Combo Loan Scheme
  • SBI NRI Car Loan Scheme
  • SBI Certified Pre-owned Car Loan
  • SBI Loyalty Car Loan Scheme
  • SBI Nano Youth Car Loan Scheme

In order to offer a car loan that suits the needs of a specific buyer, State Bank of India has on offer a range of options. The different types of car loans on offer by the State Bank of India include – SBI New Car Loan Scheme, SBI Combo Loan Scheme, SBI NRI Car Loan Scheme, certified Pre-Owned Car Loan from SBI Bank, SBI Nano Youth Car Loan Scheme, and SBI Loyalty Car Loan Scheme.

SBI New Car Loan Scheme

The first car loan option that is available is the SBI New Car Loan Scheme is for those who wish to opt for a new car loan to buy any new cars, from a compact car to larger SUV or MPV. Salient features of SBI New Car Loan Scheme:

  • SBI New Car Loan is available to those between the age of 21 to 65 years.
  • The State Bank of India provides 85% of On-Road price of the car that applicant is to buy
  • SBI New Car Loan is available for eligible applicants belonging to self-employed, salaried, and agriculturist individuals
  • As per the SBI New Car Loan Scheme, the bank charges 0.60 per cent above 1 year MCLR, which is 9.80 per cent per annum from men; and 0.55 per cent above 1 year MCLR which is 9.75 per cent per annum from women.
  • The least required income of the primary applicant for SBI new car loan along with that of co-applicant is Rs. 2 lakh.
  • SBI New Car Loan is available for a maximum of 7 years or 84 months.

SBI Combo Loan Scheme:

SBI Combo Loan Scheme has been tailor-made for anyone who wishes to buy either a two-wheeler or a four-wheeler. Through this loan scheme, the long process of getting one’s loan request approved for individuals is cut short but one also gets attractive interest rates. Below, we have the salient features of SBI Combo Car Loan Scheme:

  • SBI Combo Car Loan Scheme is available for the applicants aged from 21 to 65 years.
  • For SBI Combo Car Loan Scheme, State Bank of India offers finance of up to 85 per cent of on-road price of car & 2-wheelers.
  • SBI Combo Car Loan is available to self-employed, salaried, and agriculturist individuals
  • As per the SBI Combo Car Loan Scheme, bank charges 0.60 per cent above 1 year MCLR, which is. 9.80 per cent per annum from men; and 0.55% above 1 year MCLR which is 9.75% per annum from women.
  • For getting finance through the SBI Combo Loan Scheme, the minimum required income of the applicant along with the co-applicant is Rs. 2,00,000.
  • As per the SBI Combo Loan Scheme, one can get a loan for a maximum of 7 years.

SBI NRI Car Loan Scheme:

The State Bank of India offers car loan to Non-Resident Indians (NRIs) in cases wherein NRI is the primary borrower and the Indian resident acts as the guarantor. The salient features of the SBI NRI Car Loan Scheme include:

  • The NRI applicant and the Indian guarantor should be at least 21 years of age but not more than 65 years old.
  • The SBI NRI car loan needs to be paid back in full must be paid off fully before the primary applicant becomes 65 years old.
  • In order to be eligible to get car loan from State Bank of India, the NRI applicant needs to meet the below requirements:
    • Needs to have a steady income source
    • Needs to hold a valid Indian passport
    • Carry a valid foreign work permit or job contract
    • Should have been employed overseas for a minimum of two years
    • Should have an NRI/NRE account with the bank for at least 12 months with average balance of at least Rs. 50,000. An alternative to this is to have a separate foreign currency account with a US$5,000 or equivalent amount as a minimum initial deposit.
    • Should have a minimum net monthly income equal to or more than US$1,000 or a net annual income of at least US$12,000 or equivalent.
  • Below is the complete list of documents that are required for applying in SBI NRI Car Loan Scheme:
    • Completed application form for car loan
    • Hypothecation and Guarantee Agreements
    • Letter of arrangement
    • Power of Attorney (if required by the applicant)
    • Declaration Form

SBI Certified Pre-Owned Car Loan:

State Bank of India (SBI) also provides term loans for the purchase of Certified Pre Owned cars from certified used car dealers. However, the car should not be more than five years old. The Certified Pre-Owned Car Loan needs to be fully paid back within 8 years from the date of the original purchase of the vehicle. The salient feature of SBI Certified Pre-Owned Car Loan include –

  • One needs to be at least 21 years old but not more than 65 years old when applying for SBI Certified Pre-Owned Car Loan.
  • In the case of Certified Pre-Owned Car Loan, the State Bank of India provides finance of up to 100 per cent of the on-road price.
  • Self-employed, salaried, and agriculturist individuals are eligible to apply for Certified Pre-Owned Car Loan
  • For SBI Certified Pre-Owned Car Loan, the bank charges 4 per cent for 1 year MCLR, which translates to 13.20 per cent per annum.
  • Minimum required income of applicant and/or co applicant is Rs. 2,00,000/-
  • The loan is offered for a maximum of 7 years or 84 months.

SBI Loyalty Car Loan Scheme:

This SBI car loan scheme is for those customers of the State Bank of India that are also home loan borrowers. Given below are the salient features of the SBI Loyalty Car Loan Scheme –

  • This type of SBI car loan is for applicants aged between 21 to 65 years.
  • Self-employed, salaried, and agriculturist individuals are eligible to apply for SBI Loyalty Car Loan Scheme
  • The minimum required income of the loan applicant and/or co applicant is Rs. 2,00,000
  • There is no pre-payment penalty for SBI Loyalty Car Loan Scheme in case the borrower wants to pay back the loan fully or partly ahead of the schedule.
  • For those cars loans that are below Rs. 500,000, the bank should be given a copy of authorization letter signed by borrower to allow the retention of the deed until the car loan is paid off fully
  • As per the SBI Loyalty Car Loan Scheme, the bank charges 0.50% above 1 year MCLR, which is 9.70% per annum, from men and 0.45% above 1 year MCLR, which is 9.65% per annum, from women.

SBI Nano Youth Car Loan Scheme:

SBI Nano Youth Car Loan Scheme was tailor-made to provide the youth with an opportunity to purchase the Tata Nano mini car that was being sold by Tata Motors Ltd until recently. Therefore, this loan scheme is available only to borrowers that fall in the age group of 18 to 28 years. The prominent highlights of SBI Nano Youth Car Loan Scheme:

  • The Tata Nano brought from benefitting from this SBI car loan scheme was required to be registered in the name of the first applicant, which is the student and youngster.
  • State Bank of India provides Nano Youth Car Loan Scheme to College students or youngsters that are aged between 18 to 25 Years and who have parent or co-borrower not more than 55 Years.
  • SBI offers Nano Youth Car Loan Scheme for a minimum amount of Rs.1.00 Lac.
  • SBI offers Nano Youth Car Loan Scheme for a maximum amount of Rs.2.75 Lac
  • No pre-payment penalty is levied for early payment of SBI Nano Youth Car Loan either in part or in full.
  • Documents required by students for applying for SBI Nano Youth Car Loan
    • College ID Card/ latest passing certificate for students
    • Proof of employment for working professionals
  •  Documents required by students with parents as co-borrower:
    • Last 6 months bank account statement
    • 2 passport size photographs of borrower/guarantor (s).
    • Identity Proof
    • Proof of residence
    • Proof of official address for non-salaried individuals.
    • Latest salary-slip OR I.T. Returns/Form 16 for the last 2 years

SBI Car Loan EMI Calculation

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 tenureHigher the loan tenure, lower will be the EMI. The vice versa also holds true.
Loan AmountOf 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.

FAQs

Q: For what purpose can an individual avail SBI Car Loan?

A: State Bank of India offers car loan for the purpose of purchasing new cars and used cars

Q: What are the reasons which can lead to my loan application being turned down?

A: You need to meet the basic eligibility criteria of the bank in order to benefit from a car loan given by SBI. Moreover, you need to boast of a decent credit score and no payment default registered in your name. In case you do not have a high credit score, multiple loans and default payments then your loan application might be turned down.

Q: Can I get a loan for a used car?

A: Yes, SBI offers loan for both used and new cars.

Q: What will happen if I do not pay the EMI on time?

A: If you do not pay EMI on time, SBI will charge a penalty on the overdue amount for the period of default.

Q: What is the Car Loan Disbursement conditions set by the State Bank of India?

A: State Bank of India disburses car loan only on the following conditions:
Loan Amount will be credited to the account of supplier/dealer through online route
All necessary statutory compliances are in place.

Q: What is the tenure for a car loan of SBI Car Loan?

A: State Bank of India offers car loan for 84 months, which is the longest tenure offered by any Indian Bank for Car Loan. It is due to the longest tenure for a car loan that State bank of India is a preferred choice of the loan borrowers.

Q. What are the processing fees or other charges deducted by State Bank of India on Car Loan?

A: The processing fee for State Bank Of India car loans is charged as specified below:
When loans are sanctioned: 0.51% of the loan amount subject to Minimum of Rs. 1020/- and maximum of Rs. 10200/-.
If loan application is rejected: SBI retains 25% of processing fee, in case application is rejected after completion of pre-sanction survey.  Maximum limit is Rs 2550 and the min amount is Rs. 510.
State Bank of India does not charge a car loan pre-payment penalty.

Q: How can I reach SBI Bank representatives?

A: Customers can get queries addressed at branch, by email or over the phone.

Q: How can I reach SBI Bank representatives?

A: Customers can get queries addressed at branch, by email or over the phone.

Q: Who can be a Guarantor under SBI NRI Car Loan Scheme?

A: To stand guarantee for the loan, a guarantor has to be Indian Resident, and should be a relative to the NRI, such as:
– Spouse
– Father
– Mother (including step-mother)
– Son (including step-son)
– Son’s Wife
– Daughter (including step-daughter)
– Daughter’s Husband
– Brother’s wife
– Sister (including step-sister)
– Sister’s husband
– Sister (including step-sister) of the spouse
– Brother (including step-brother) of the spouse
– A guarantor can be any individual such as:
– Agriculturist
– Professional
– Self-employed person
– Businessman
– Student
– Parent of an NRI, who is receiving inward remittance or pension at regular intervals

Q: I want to takeover a car loan from another bank to SBI Bank (balance transfer). Which documents do I need to submit?

A: In order to transfer balance while taking-over a car loan from another bank to SBI, you would need to submit the following documents-
– Original Sanction letter of the lender
– Foreclosure letter
– Account statement by the lender
– List of documents held by the lender
– RC Book
– Insurance Copy
– Letter undertaking the issue of NOC by the present lender (financial institution or bank)

Q: Does State Bank of India offer the option of life insurance along with the car loan?

A: Yes, if an applicant applied for any SBI car loan scheme, he is offered to take the life insurance plan by SBI Life Insurance Company Ltd. at little to no extra cost.

Q: Does SBI charge prepayment penalty on foreclosure of the loan under the SBI New Car Loan Scheme?

A: No, State Bank of India does not charge any penalty on foreclosure of the loan under the SBI New Car Loan Scheme.

Q: What is the maximum loan repayment period under the SBI Pre Owned Car Loan Scheme?

A: The maximum repayment period is 84 months or 7 years under the SBI Pre Owned Car Loan Scheme.

Q: What is the minimum income eligibility criterion for the SBI Car Loan Schemes?

A: The car loan borrower is eligible to apply for SBI car loan schemes if his minimum income is at least Rs. 2,00,000.

Q: Will my CIBIL score affect car loan application with state Bank of India?

A: Yes, while sanctioning car loan, State Bank of India looks at the CIBIL score of the applicant. The bank approves the application of the car loan only when the CIBIL score of the applicant is high.

Q: Where can I view my State bank of India car loan statement online?

A: To keep a check on your SBI Bank car loan details online, borrowers can visit the SBI online banking portal and log on to the Net Banking account for checking the data.

Q: From where can I get more detailed information about SBI Car Loans?

A: To get more information for different types of SBI car loan schemes, individuals can either make a visit to the nearest State Bank of India branch in their city or call the dedicated SBI customer care center through the toll-free number.

Q: From where can I get the SBI car loan application form?

A: Eligible applicants can either visit the nearest State Bank of India branch or visit PaisaBazaar website to online apply for SBI Car loan and fill SBI car loan online application form.

Q: How much time does it take for car loan disbursals with the State bank of India?

A: Once the documents are verified and loan is approved. State Bank of India instantly disburses car loans for the approved amount.

Q: How can I use SBI car loan EMI calculator at Paisabazaar?

A: To use SBI car loan EMI calculator at Paisabazaar, click on Tools, EMI Calculator and finally Car Loan. Once you reach on the Car Loan EMI Calculator page, use the slider or directly mention the figures in the respective columns for car loan amount, rate of interest, and duration of loan.

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