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SBI Car Loan - A Guide to Buy your Dream Car

Updated on November 30, 2022 , 11832 views

The State Bank of India (SBI) is one of the most trusted banks in India. When it comes to loans, it is well-known for its attractive interest rates, processing fees, customer service, etc. There are many types of loan SBI offers- such as Home Loan, personal loan, emergency loan, etc.

SBI Car Loan

Out of all these, car loan is one of the most preferred schemes as SBI offers flexible loan repayment, low-interest rates, etc. Here’s a detailed guide to SBI car loan.

Top SBI Car Loans

There are many variation of car loans offered by the SBI. Each loan is designed for specific benefits, therefore their features vary.

Here's the interest rate of various SBI car loans -

Loan Interest Rate
SBI New Car Loan 8.00% to 8.70% p.a
SBI Car Loan Lite Scheme Based on CIBIL Score
SBI Loyalty Car Loan Scheme 7.95% to 8.65 % (CIC Based rates are applicable).
SBI Assured Car Loan Scheme 8.00% to 8.70% p.a
SBI Certified Pre Owned Car Loan Scheme Men: 2.25% above 1 year MCLR i.e. 9.50% p.a. Women: 2.20% above 1 year MCLR i.e. 9.45% p.a.

1. SBI New Car Loan Scheme

SBI offers the best deal for financing your new car. It offers a good interest rate, lowest EMI cost, less paperwork, etc. This loan scheme can be opted to buy a new passenger car, multi-utility vehicle (MUV) and SUV.

There is also an optional SBI Life Insurance cover available the SBI New Car Loan Scheme.

Features of SBI New Car Loan Scheme

Financing

Financing the on-road price is one of the unique features of this scheme. A loan up to 90% of the on-road price is available with this scheme. On-road price includes registration, insurance, extended warranty/total service package/annual maintenance contract/cost of accessories.

Interest Rate

The interest rates for this scheme starts from 8.00% p.a. and goes up to 8.70% p.a. The interest is calculated on the Daily Reducing Balance.

Processing Fee

The processing fees for SBI New Car Loan is quite low. It is as mentioned below:

Processing Fees Maximum Processing Fees Minimum Processing Fees
0.40 % of loan amount+ GST Rs. 7500+GST Rs. 1000+GST

Eligibility

There is a certain criterion attached to a certain group of people to avail the loan. They are mentioned below:

  • Government Employees

Employees of Central Public Sector Enterprises (Maharatnas/Navratnas/Miniratnas). Defence Salary package (DSP), Para Military package (PMSP) and Indian Coastal Guard Package (IGSP) Customers and Short Commissioned Officers of various Defence establishments.

The annual Income of the applicant/co-applicant should be a minimum of Rs. 3 lakhs. The maximum loan amount they can avail on this scheme is 48 times of the net monthly income.

  • Private Sector

Professional, Self-employed individuals, business people, proprietary/partnership firms and other income tax registered individuals can avail the loan 4-time net profit of the gross taxable incomes as per the ITR. This can be done after adding back Depreciation and repayment of all existing loans.

The income criteria for such applicants will be Net profit or gross Taxable Income of Rs. 3 lakhs per annum.

  • Agricultural Sector

Income tax details are not required in the case of agriculturists. The maximum loan amount they can avail is 3 times the net annual income. The net annual income of the applicant and the co-applicant should be a minimum of Rs. 4 lakhs.

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2. SBI Car Loan Lite Scheme

This is another popular car loan scheme offered by the SBI bank. The loan offers good interest rates along with repayment tenure.

Features of SBI Car Loan Lite Scheme

Occupation

This scheme is open for business persons, professional self-employed individuals, agriculturists under ‘Tatkal Tractor Scheme’. These individuals are engaged in economic activity, but have no income proof.

Loan Amount and Tenure

You can avail a loan amount of Rs. 4 lakhs. The loan repayment tenure is 5 years.

Income criteria

If you wish to apply for this loan you should have a Net Annual Income (NAI) of Rs. 2,50,000 and above.

EMI/NMI Ratio

The EMI/NMI ratio as per regular car loan scheme is as follows:

Net Annual Income EMI/NMI Not to Exceed
Upto Rs. 10 lakhs 50%
Above Rs. 10 lakhs 60%

Interest Rate

The Interest rate for the SBI car loan lite scheme depends on your CIBIL score. Check the table below:

CIBIL Score Rate of Interest (%)
From 650 to 749 4.00% above 2 year MCLR i.e. 11.45% p.a.
750 and above 3.00% above 2 year MCLR i.e. 10.45% p.a.

Age group

People between the ages of 21-65 can apply for this loan.

3. SBI Loyalty Car Loan Scheme

Through the SBI Loyalty Car Loan Scheme you can avail a margin of 100% on-road finance with this car loan scheme.

Features of SBI Loyalty Car Loan Scheme

Maximum Loan Amount

a) A 75% of present Market value of the house property less present outstanding in the Home Loan account and Home Equity, if any. The present market value of the property will be decided as per the fresh valuation report obtained from an empanelled valuer. However, in cases where the adequate cushion is available based on the original value of the property, fresh valuation need not be obtained.

b) Your minimum net annual income should be Rs 2 lakhs. SBI proposes lower-income criteria because the car loan will be adequately secured by the extension of mortgage of house property/lien on title deeds as stipulated in (A) above.

c) The on-road price of the vehicle.

Repayment Tenure

The repayment tenure for the loan is a maximum of 7 years.

Interest Rate

You will be able to avail an interest rate from 7.95% to 8.65 % (CIC Based rates are applicable).

Processing Fees

The processing fees for SBI loyalty car loan is mentioned below:

Processing Fee Maximum Processing Fees Minimum Processing Fees
0.25% of loan amount+GST Rs. 5000+GST Rs. 500+GST

4. SBI Assured Car Loan Scheme

SBI’s assured car loan scheme is one of the most loved schemes. The margin required is 100% of the Fixed Deposit for on-road price.

Features of SBI Assured Car Loan Scheme

Income

The income you declare will be accepted as per bank’s norms.

Maximum loan amount

The minimum loan amount is Rs. 2 lakhs, however there is no maximum loan amount for this scheme

Loan Repayment Tenure

You can choose your loan repayment tenure from between 3 to 7 years.

Processing Fees

No processing fees are applicable to this loan scheme.

Interest Rate

The interest rate for this scheme starts from 8.00% to 8.70% per annum.

Age Group

There is no upper limit for the age group. People aged 18 and above can apply for the loan.

5. SBI Certified Pre Owned Car Loan

The Certified Pre Owned Car Loan scheme is available to all salaried, self-employed, professionals and others involved in agriculture. You can avail a minimum loan of Rs. 3 lakhs to a maximum loan of Rs. 10 lakhs loan under this scheme.

Features of Certified Pre Owned Car Loan

Age of Vehicle

Vehicle must be 8 years old before applying for this scheme.

EMI

This will depend on your net annual income. The EMI ratio on your vehicle will then 50% on loan amount up to Rs. 5 Lakhs and 70% on loan amount above Rs. 5 lakhs and up to Rs. 10 lakhs.

Income Criteria

The net annual income criteria is mentioned below:

  • Salaried: Rs. 2,50,000 and above
  • Self-employed: Rs. 3 lakhs and above
  • Professional: Rs. 3 lakhs and above
  • Persons in Agricultural and Allied Activities: Rs. 4 lakhs

Interest Rate

  • The interest rate for Men: 2.25% above 1 year MCLR i.e. 9.50% p.a.

  • For Women: 2.20% above 1 year MCLR i.e. 9.45% p.a.

Car Loan EMI alculator

The car loan emi calculator is a quick and simple solution to pre-plan your loan. It helps in balancing your inflow and outflow of money so that you don’t run short of money. A card loan calculator is a formula box with three inputs, namely-

  • Loan Amount
  • Loan Tenure
  • Interest Rate

Once you fill in the details, the calculator will tell you the EMI (Equal Monthly Installment) amount that you will need to give to the bank every month, to repay your debts.

Documents Required for SBI Car Loan

You will need to submit the following documents along with the loan application form.

Salaried Individuals

  • statement of bank account for last 6 months
  • Identity proof (cop of anyone) Passport/PAN Card/Voters ID/Driving License, etc
  • Address proof (copy of any one) Ration card/Driving License/Voters ID Card/Passport/Telephone Bill/Electricity bill/Life Insurance Policy
  • Income proof like latest salary slip along with Form 16
  • I.T. Returns or Form 16 for the last 2 years
  • 2 passport size photographs

Non-Salaried

  • Statement of bank account for last 6 months
  • 2 passport size photographs
  • Identity Proof
  • Address Proof
  • Income Proof like ITR for last 2 years
  • I.T. Returns or Form 16 for the last 2 years
  • Audited Balance Sheet, p&L statement for 2 years, shop and establishment certificate/Sales Tax certificate/SSI certificate/copy of partnership

Agricultural Persons

  • Statement of bank account for last 6 months
  • 2 passport size photos
  • Identity Proof
  • Address Proof
  • Direct agricultural activity (crop cultivation):
  • Khasra/Chitta Adangal (showing cropping pattern) Patta/Khatoni (showing landholding) with photo. All Land should be on a freehold Basis and ownership proof to be in the name of the borrower.
  • Allied agricultural activity (like Dairy, Poultry, Plantation/ Horticulture) Documentary proof of running of the activities will be required

Conclusion

If you are arranging finance to buy a car, then the SBI car loan is a great option to explore. Make sure to read all their schemes related documents carefully before applying for the loan.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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