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Car Loan

SBI Car Loan

State Bank of India (SBI) is India’s largest public sector bank with headquarters in Mumbai, Maharashtra. SBI is the largest banking and financial services corporation in India in terms of its assets and is named amongst the Big Four Banks of India including Bank of Baroda (BoB), Punjab National Bank (PNB) and ICICI Bank. As of 2014-15, State Bank of India has more than 14000 branches, and a total asset of Rs. 20, 48,080 crores, that makes it one of the largest banking and financial services company in India in terms of assets. With 20% market share in deposits & loans, among all Indian commercial banks, SBI offers a wide range of competitive banking and financial solutions to customer segments whether small or large.

State Bank of India offers car loans at attractive interest rates and loan tenure to the Indian citizens. The car loan from State Bank of India are recognized to be the best car loans in India and can be availed by different segments of the population such as self-employed professionals, salaried professionals, agriculturists and partnership firms. SBI Car Loans are offered to the individuals as well as firms for the purchase of multi utility vehicles, new as well as used passenger cars and SUVs.

 

SBI Car Loan Interest Rates* 

SBI New Car Loan Scheme Features
Interest Rate For women – 9.65% onwards
For all others groups – 9.70% onwards
Processing Fees Nil
Loan Margin 15% of vehicle’s price (on road)
Loan Tenure Not exceeding 7 years

*The facts and figures mentioned above are indicative and may be changed from time to time as per bank’s and RBI’s policies.
 
The SBI car loan interest rates for a new car loan for any tenure are 9.70% p.a. for men and 9.65% p.a. for women. The SBI car loan interest rates for a used car loan are much higher as compared to interest rate on a new car loan.For certified pre-owned cars, the SBI car loan interest rate starts at 13.15% p.a. for any tenure.
 
MCLR-based interest rates of Top SBI Car Loan Schemes*
(MCLR is the acronym for Marginal Cost of Lending Rate and 1 Yr. MCLR of SBI is 9.10%)

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Loan Scheme Interest Rate for Women (per annum) Interest Rate for Men (per annum)
New Car Loan 9.65% onwards 9.70% onwards
Combo Loan 9.65% onwards 9.70% onwards
NRI Car Loan 9.65% onwards 9.70% onwards
Pre-owned Car Loan (certified) 13.10% onwards 13.10% onwards
New Car under Loyalty Scheme 9.55% onwards 9.60% onwards
Used Car under Loyalty Scheme 10.85% onwards 10.90% onwards

*The facts and figures mentioned above are indicative and may be changed from time to time as per central bank policies and other factors.
 
Car Loans provided by SBI are offered at both fixed and floating interest rates. The car loan interest rates are calculated on a daily reducing balance with monthly rests.The SBI car loan interest rates vary according to the following factors:

  • New or used cars
  • Tenure of loan
  • Car loan scheme
  • Car loan applicant

Common Features of SBI Car Loan

SBI Car Loans

  • Multiple Options to choose from: State bank Of India offers multiple Car loan options to choose from for financing the purchase of both new as well as used cars.
  • Lowest interest rates: Car loan interest rates by SBI bank are very lucrative and are charged at the lowest possible rates. State Bank of India car loan interest rates are offered at both fixed as well as flexible rates. The prevailing SBI Car Loan interest rates range between 10.40% and 10.45%.
  • No advance EMI (advance monthly car loan payments): The State Bank of India car loan borrowers enjoys flexible options to pay EMIs. Car loans provided by SBI come with hassle free options as per which the customer does not have to pay advanced EMI at the time of taking SBI car loan. Further, they even get the liberty to pay off their EMIs at any time during the month.
  • Repayment tenure: The State Bank of India has designed the car loan product keeping the convenience of the borrowers in mind. For the same, SBI bank offers the longest car loan repayment period of 7 years or 84 months.
  • Financing the Car’s ‘On-Road’ Price: State Bank of India finances car loan of a borrower on 85% ofOn-Road price that includes cost of registration/annual maintenance contract/total service package/cost of accessories /charges for insurance and extended warranty.
  • Interest is calculated on daily reducing balance: Another added advantage of SBI car loans is that the customers are charged interest at daily reducing balance.
  • No-foreclosure Charges: Certain SBI car loan schemes offer no fore-closure charges; which mean car loan borrowers do not need to pay extra for pre-paying the borrowed car loan amount.
  • Optional SBI life cover: Along with SBI Car Loan, State Bank of India even offers an option of choosing SBI life cover by paying a little extra cost.
  • Overdraft Facility: With the SBI Car loans, borrowers can even avail overdraft facility at the State Bank of India.

SBI Car Loan Eligibility

To be eligible for SBI Bank car loan, an applicant must fall in the below mentioned criteria.

Age Group: To avail any type of SBI car loan, an applicant must lie in the age bracket of 21 to 65 years.

Category: The applicant can be a salaried or self-employed individual with a regular income source.

SBI Bank account: Applicantsneed to have SBI savings bank account with the State Bank of India to apply for any car loan scheme.

Net Income Requirement: The net income requirement varies according to the car loan scheme and the employment types of the applicant:

  1. The net annual income for salaried applicant should be between 2 lacs to 3 lacs

  2. The net annual income for self-employed applicants should be between 2 lacs to 4 lacs

These are the requirements of SBI car loan, which an applicant must meet to be eligible to get car loan by State Bank of India.

 

Check your Car Loan Eligibility

To know whether you satisfy the eligibility criteria for a car loan, you can Check SBI Car Loan Eligibility at Paisa Bazaar.

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Different Types of Car Loan by SBI Bank

To cater to the specific needs of the customers, SBI bank offers different options to those seeking a car loan. The different car finance plans 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:

SBI New Car Loan Scheme is for purchasing new cars- ranging from small compact cars to larger ones such as MUVs (Multi Utility Vehicles) and SUVs. Customers can obtain SBI Bank loan for a new car at attractive terms and conditions set by the State Bank of India.

Highlights of SBI New Car Loan Scheme:

  1.  Certified SBI New Car Loan Scheme is provided to applicants between 21 to 65 years.
  2.  For SBI Combo NewLoan Scheme, State Bank of India sanctions 85% On-Road price of car & 2-wheeler.
  3.  Self-employed, salaried, and agriculturist individuals are eligible to apply for SBI NewCar Loan Scheme
  4.  Under the SBI New Car Loan Scheme, bank charges 0.60% above 1 year MCLR i.e. 9.80% p.a. from men; and 0.55% above 1 year MCLR i.e. 9.75% p.a. from women.
  5.  Minimum required income of primary applicant by himself/herself or along with co- applicant is Rs. 2 lakhs.
  6.  Loan is provided for a maximum of 7 years or 84 months.


SBI Combo Loan Scheme:

SBI Combo Loan Scheme is specifically designed for the individuals who need to purchase both two-wheeler and four-wheeler. This loan scheme cut shorts the long process of getting approval for both the loans individually as well as offers attractive deals.

Highlights of SBI Combo Car Loan Scheme:

  1. Certified SBI Combo Car Loan Scheme is provided to applicants between 21- 65 years.
  2. For SBI Combo Car Loan Scheme, State Bank of India sanctions 85% On-Road price of car & 2-wheeler.
  3. Self-employed, salaried, and agriculturist individuals are eligible to apply for SBI Combo Car Loan Scheme
  4. Under the SBI Combo Car Loan Scheme, bank charges 0.60% above 1 year MCLR i.e. 9.80% p.a. from men; and 0.55% above 1 year MCLR i.e. 9.75% p.a. from women.
  5. Minimum required income of applicant and/or co applicant is Rs. 2,00,000/-
  6. Loan is provided for a maximum of 7 years or 84 months.


SBI NRI Car Loan Scheme:

State bank of India offers Car Loan to non-resident Indians where NRI is the primary borrower, while a resident Indian acts as the guarantor.

Highlights of SBI NRI Car Loan Scheme:

  1. Both primary applicant and the guarantor should be of over 21 years and not exceeding 65.
  2. The SBI NRI car loan must be paid off in full before the primary applicant reached 65 years of age.
  3. To be eligible to avail car loan from State Bank of India, the NRI applicant (borrower) should fulfill the following conditions:
    1. A steady income source is to be maintained
    2. Possess a valid Indian passport
    3. Have a valid foreign work permit or job contract
    4. Employed overses for at least two years
    5. Has maintained an NRI/NRE account with the bank for no less than 12 months with average balance of at least Rs. 50,000 or opts for a separate foreign currency account with a US$5,000 or equivalent amount in another foreign currency as the initial deposit.
    6. Needs to have a minimum net monthly income equal to or more than US$1,000 or a net annual income not less than US$12,000 or an equal value in any other foreign currency.
  4.     List of general documents required for SBI NRI Car Loan Scheme are:
    1. Completed application form for car loan
    2. Hypothecation and Guarantee Agreements
    3. Letter of arrangement
    4. Power of Attorney (if required by the applicant)
    5. Declaration Form


SBI Certified Pre-Owned Car Loan:

State Bank of India offers term loans for purchase of Certified Pre Owned car, from certified used car dealers, not more than five years old. The Certified Pre-Owned Car Loan from SBI Bank should be repaid within 8 years from the date of the original purchase of the vehicle.

Highlights of Certified Pre-Owned Car Loan:

  1. Certified Pre-Owned Car Loan isprovided to applicants between 21- 65 years.
  2. For Certified Pre-Owned Car Loan, State Bank of India sanctions 100% On-Road price.
  3. Self-employed, salaried, and agriculturist individuals are eligible to apply for Certified Pre-Owned Car Loan
  4. Under the Certified Pre-Owned Car Loan, bank charges 4.00% above 1 year MCLR i.e. 13.20% p.a.
  5. Minimum required income of applicant and/or co applicant is Rs. 2,00,000/-
  6. Loan is provided for a maximum of 7 years or 84 months.


SBI Loyalty Car Loan Scheme:

This car loan is specially offered to the customers of the SBI home loan borrowers.

Highlights of SBI Loyalty Car Loan Scheme:

  1. Loan provided to applicants between 21- 65 years.
  2. Self-employed, salaried, and agriculturist individuals are eligible to apply for SBI Loyalty Car Loan Scheme
  3. Minimum required income of applicant and/or co applicant is Rs. 2,00,000/-
  4. No pre-payment penalty is levied for SBI Loyalty Car Loan Scheme
  5. For car loans not exceeding Rs. 500,000, bank needs to be provided copy of authorization letter signed by borrower allowing retention of the deed until the car loan is paid off in full.
  6. Under the SBI Loyalty Car Loan Scheme, bank charges 0.50% above 1 year MCLR i.e. 9.70% p.a. from men; and 0.45% above 1 year MCLR i.e. 9.65% p.a. from women.


SBI Nano Youth Car Loan Scheme:

SBI Nano Youth Car Loan Scheme is designed to promote the purchase of the Tata Nano small car manufactured by Tata Motors Ltd. among young Indian. Hence, the loan is only valid for young Indians who fall within the age group 18 to 28 years.

Highlights of SBI Nano Youth Car Loan Scheme:

  1. Under this loan scheme by SBI, The car has to be registered in the name of the first applicant, i.e. Student/ Youngster
  2. SBI offers Nano Youth Car Loan Scheme to College going student or youngsters (18 to 25 Years), who has Parent or co-borrower not more than 55 Years.
  3. SBI offers Nano Youth Car Loan Scheme for a minimum amount of Rs.1.00 Lac.
  4. SBI offers Nano Youth Car Loan Scheme for a maximum amount of Rs.2.75 Lac
  5. No pre-payment penalty is levied for SBINano Youth Car Loan
  6. Documents required by students for SBI Nano Youth Car Loan
    1. College ID Card/ latest passing certificate for students
    2. Proof of employment for working professionals
  7.     Documents required by students with parents as co-borrower:
    1. Last 6 months bank account statement
    2. 2 passport size photographs of borrower/guarantor (s).
    3. Identity Proof
    4. Proof of residence
    5. Proof of official address for non-salaried individuals.
    6. Latest salary-slip OR I.T. Returns/Form 16 for the last 2 years

With such a wide variety of options, the car loans offered by SBI Bank become a natural choice for an applicant wanting to buy a car of his/her choice.

SBI Car Loan EMI Calculator

An essential factor to consider, when you are planning to buy a new or even a used car is you budget. Once you have settled on a budget and by extension a loan principal amount as well as a tenure that works for you, you can shop around for the best rate. However, your calculations do not end there as you now need to figure out how much you can actually afford as a monthly payout on your car loan in the form of EMIs without having to stretch your monthly budget. This is where the SBI car loan EMI calculator can help you make an informed decision based on actual figures instead of the hearsay propagated by financiers at the car dealership. Using the basic data mentioned above, you can get the EMI payout figure in seconds. Thus you can say goodbye to the long hours of tedious calculation that were required when you planned to calculate your car loan EMI amount with pen and paper. Apart from the fact that the SBI car loan EMI calculator is free as well as easy to use, you can always change any of input factors in the calculator to get an EMI figure that you are comfortable with.

Apply for SBI Car Loan at PaisaBazaar

Apply Online

PaisaBazaar.com has simplified the process of applying for SBI car Loan Schemes. With just few clicks, you can apply for SBI Car Loans online and get instant approvals. At PaisaBazaar, you cannot just apply for a car loan online by SBI Bank, but can even use the online car loan EMI calculator to compare different car loans identify which scheme is the best for you, depending upon your personal & budget requirements. At PaisaBazaar, customers can even find deals on car loans by SBI and other leading national or international banks.

 

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SBI Bank Car Loan FAQs

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

State bank of India sanctions car loan for the purpose of purchasing new Cars and used cars of various types.

 

Q. What are the required documents for SBI car loan?

Documents required for a Salaried professional:

  • Duly filled and signed SBI car loan application
  • Two-photographs
  • Acceptable ID and address proof documents
  • Last 6 months’ bank account statement
  • Income Proof: Latest Salary Slips up to 6 months/ Form 16 for at least last 2 years

Documents required for a Non-Salaried, self-employed professional:

  • Bank account transaction details for previous months
  • Two-photographs
  • Acceptable ID and address proof documents
  • Income Proof: ITR for last 2 years
  • I.T. Returns for the last 2 years.
  • CA certified Balance sheet, Profit-Loss statement for 2 years, certificate as per Shop and Establishment Act / certificate showing sales tax payments, etc.

Documents required for individuals engaged in agricultural activities:

  • Statement of bank account for last 6 months
  • Two-photographs
  • Acceptable ID and address proof documents
  • Bank accepted cropping pattern and land holding documents
  • Documentary proof of dairy, plantation and related operation

 

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

You should satisfy the basic eligibility requirements of the bank to get a car loan sanctioned. Also, you should have a decent credit score and no payment defaulters under your name. If you have a low 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?

Yes, SBI offers loan for both used and new cars. To get Car loan for Used Car from SBI Bank, you can avail Certified Pre-Owned Car Loan which is a term loan for purchase of Certified Pre Owned car, from certified used car dealers. According to the conditions, the used car should not be more than five years old. The Certified Pre-Owned Car Loan from SBI should be repaid within 8 years from the date of the original purchase of the vehicle.

 

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

If you do not pay EMI on time then SBI will charge a penalty on the overdue amount for the period of default. Penal interest will not be charged for loans up to Rs.25,000/-. For Loans above Rs.25000/- , penal interest would be charged @2% p.a.

 

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

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

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

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?

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?

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
  • Business man
  • 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?

To transfer balance while taking-over a car loan from another bank to SBI, you would need to submit following set of 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 optionoflife insurance along with the car loan?

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?

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?

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?

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?

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. From here can I get more detailed information about SBI Car Loans?

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. Also, the individuals can reach out to the representatives at the PaisaBazaar via online chat or toll free number.

 

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

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 the SBI car loan application form?

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?

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?

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. When this is done, the EMI calculator at Paisabazaar automatically calculates the equated monthly installment figure and displays the result in the right side column. This is one of the easiest and reliable ways to calculate EMI for SBI Bank car loans.

SBI Car Loan
(4/5 ) 5 Reviews
Car LoanCar Loan
5/5

Lowest interest rate

I’ve taken SBI car loan for the third time and this time I got my loan approved at 9% with no processing fee. I recommend SBI to all the people who are planning to buy a car. They give you best-in-class experience with lowest possible interest..Read more...

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Posted on: Jan 27 , 2017
Car LoanCar Loan
5/5

Highest loan amount

I wanted to buy Tata Safari Storme top model, but I had not saved enough for the down payment. SBI funded 80% of the car price and I got my loan approved within at minimum interest rate within 72 hours. My dream car was delivered to me on time. I rea..Read more...

Male Profile Pic
Posted on: Jan 27 , 2017
Car LoanCar Loan
4/5

Highly satisfactory

I chose SBI because I have a salary account with them. They offered me 9.25% interest rate and no processing fee. The customer services are so well and the loan process is quite simple. I will surely recommend SBI car loan to my friends.

Male Profile Pic
Posted on: Jan 27 , 2017
Car LoanCar Loan
3/5

Loan disbursal takes too long!

SBI loan interest rates and processing fees are very low but the loan processing takes too long. I had to wait for 10 days to get my loan approved. Happy with the interest rates but loan processing time should take less time.

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Posted on: Jan 27 , 2017
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