SBI Car Loan

Updated: 28-06-2022 05:57:21 AM

 

SBI Car Loan Interest Rate and Fees* Oct 2018

Interest Rate	9.20% – 9.70%
Processing Fee	Rs. 1,000 – Rs. 1,500 + GST
Repayment Tenure	Upto 7 years
Financing	90% of ‘on-road’ price
Maximum Loan Amount	For Government Employees: 40 times of monthly income. For Professionals: 4 times of gross taxable income. For Businessmen: 4 times of net profit. For Agriculturalist: 3 times of net annual income.

 *The facts and figures provided above are indicative and liable to change periodically.

SBI Car Loan Features

These are the salient features of the car loan given by SBI bank:

• 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% of On-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

These are the eligibility conditions to avail car loan from SBI bank:

Age Group	Category	Income Criteria	Max. Loan Amount
Age: 21 to 65 years	An employee of Central/State government, public/private limited company	A net annual income of Rs. 2,50,000 of the applicant and/or the co-applicant	48 times of the net monthly income
Age: 21 to 65 years	Professionals, self-employed, businessmen, proprietary/partnership firms	Net Profit or Gross Taxable income of Rs. 4,00,000	4 times of Net Profit or Gross Taxable income as per the filed ITR
Age: 21 to 65 years	Agriculturist	A net annual income of Rs. 4,00,000 of the applicant and/or the co-applicant	4 times of Net annual income

SBI Car Loan Documents Required

These are the required documents to submit to avail the car loan from SBI Bank:

Salaried	Self-Employed	Agriculturist
Car loan application form	Car loan application form	Car loan application form
Bank statement for last 6 months	Bank statement for last 6 months	Bank statement for last 6 months
ID and Address Proof	ID and Address Proof	ID and Address Proof
2 passport sized photographs	2 passport sized photographs	2 passport sized photographs
Income proof: Salary Slip, Form 16, and ITR for 2 years	Income proof: Form 16 and ITR for 2 years	Bank accepted cropping pattern and land holding documents and documentary proff of cultivation

SBI Car Loan Schemes

These are the different SBI car loan schemes available:

• 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

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 is provided 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 Calculation

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. The EMI calculation helps you 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.

Process to Apply for SBI Car Loan

PaisaBazaar has simplified the process of applying for SBI car Loan. With just few clicks, you can apply for SBI Car Loans online and get instant approvals. You need to provide your basic details, with the details of the car you are looking to buy, and your budget for the car. We will bring you the best offers available at SBI for new or used car loans as per your budget and requirements.

SBI 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 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 option of life 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.