SBI Bank Vehicle Loan

Updated: 29-02-2024 09:45:05 AM

In India, every individual prefers a personal mode of transport such as car, scooter, and bike for easy commuting between places. Nowadays, two-wheelers are occupying most parts of the roads because they are comparatively fast and compact. Thus, the need of vehicle loan is felt to solve all the travel-related problems of the people. Almost all Indian banks offer vehicle loans but SBI vehicle loans are the most widely opted and commonly applied for loans in India and abroad. The reason being that SBI vehicle loans offer very competitive interest rates and involves easy loan application process. The different features of SBI vehicle loans are as follows:

• Loans are provided to buy new two wheelers like scooter, bike, two wheelers running on battery etc.
• The tenure of loan repayment is for not more than 36 months.
• The applicant is not required to pay advance EMI.
• Processing fee of 1.22% on the amount of loan is charged form the borrowers by the SBI Bank.
• Very nominal and affordable EMI as well as interest rates are charged.
• EMI payment is very flexible. The applicant can make payment towards EMI anytime during the month.
• The LTV paid to the applicant is 85% of the road price of the vehicle.
• Optional SBI life cover facility is not available to the borrowers.
• Free accidental insurance to the applicant is offered by the SBI Bank.
• The optimum loan amount for salaried individuals is limited to 6 times of the borrower’s net monthly income.
• The maximum loan amount for persons other than salaried individuals is limited to half of the net annual income of the loan borrower.
• For individuals involved in agricultural purposes, the net yearly income depends on a number of factors like farming, poultry, dairy, land holding, orchard, pattern of cropping, total yields from the land etc.
• The margin of loan offered is 15% of the vehicle’s road value including registration charges of the vehicle, insurance and also one-time road tax.