SBI Car Loan

Don't put your dream on a waiting list as State Bank of india offers you funds as high as 48 times of your net annual income for Salaried applicants having net annual income of minimum Rs. 2.5 Lacs including income of your co-applicant, for Self-Employed applicants having Net Annual Income or Gross Taxable Income of Rs. 4 Lacs including income of your co-applicant you can avail as high as 4 times of Net Profit / Gross Taxable Income and can avail as high as 3 times of your net annual income if you are engaged in agricultural or allied activities and are having a net annual income of minimum Rs. 4 Lacs including income of your co-applicant.


SBI is a good fit for you if?

If You are Self-employed having net income of Rs. 4 Lacs – Availing Car Loan from State Bank of india could be a good fit for you if you are a Self-Employed Professional, a Self-Employed Businessman, a Proprietorship or a Partnership firms who are income tax assesses and are earning a Net Profit or a Gross Taxable income of Rs. 4 Lacs per annum including the income of your co-applicant. Since, SBI provides you funds as high as 4 times of your Net Profit annual income or Gross Taxable Income as per Income Tax Return (ITR) excluding proposed EMI and any existing EMI of other. This means you can avail as high as Rs. 16 Lacs.

Salaried Employees with a net income of Rs 2.5 Lacs – If you are a regular employee of the State, Central government , Public Sector Undertaking, Private Company or an employee of a reputed establishment and are having a net income of Rs. 2.5 Lacs including the income of Co-applicant then applying for a car loan from State Bank of India could be the best alternative for you as it offers funds as high as 48 times of your net monthly income. This means you can avail as high as Rs. 1.20 Crores.

You are engaged in agricultural and allied activities – Applying for a Car loan from State Bank of India could be a good alternative for you if you are a person who is engaged in agricultural and allied activities and your net annual income and the income of your co-applicant together should be a minimum of Rs. 4 Lacs, then you can avail loan as high as 3 times of your net annual income. This means you can avail as high as Rs. 12 Lacs.

SBI Car Loan at a glance

Annual Interest Rate

9.20% - 9.70%

Loan Term

Maximum 84 months

Loan Amount

Up to Rs. 1.20 Crores

Time of Funding

Within 5 working days

Pre-Payment Charges

Nil

State Bank of India offers loan for purchasing of a new car with a annual interest rate ranging from 9.20% to to up maximum of Rs. 9.70% per annum. You can repay your loan easily and as long as 84 months after the approval of your loan. If you are a salaried employee having net annual income of minimum Rs. 2.5 Lacs including the income of co-applicant, then you can avail as high as Rs. 1.20 Crores, if you are a self-employed professional or a self employed businessman having a net annual income or a gross taxable income of Rs. 4 Lacs including the income of your co-applicant, then you can avail as high Rs.16 Lacs and for applicants who are engaged in agricultural and allied activities and having a net annual income of minimum Rs. 4 Lacs including income of your co-applicant, then you can avail as high as Rs. 12 Lacs. State bank of india does not charge any prepayment fee for availing Car Loans.

Why Choose SBI?

Longest repayment period – While choosing a Bank for a loan, you must keep in mind about the repayment period offered by them as some banks offers short period of time to repay the loan which leads to lot of difficulties for applicants who are having financial problems. So no need to be worried as State Bank of India has the longest repayment period in the industry which is 84 months.

Avail funds on On-road Price – Selecting State Bank of india for availing Car loans could be a good alternative for you as you are allowed to avail funds on On-Road Prices which includes Registration charges, Insurance and extended warranty / Total Service Package / Annual Maintenance Contract / Cost of Accessories.

Interest is calculated on daily basis – Availing car loan from State Bank of India could be a good choice for you as here, the interest rate is calculated on daily basis. So you can easily apply for this type of loan and take advantage of this unlike other competing banks or financial institutes who calculates interest on monthly reducing balance.

No Foreclosure Fee – You can choose State Bank of India for availing car loans without paying unnecessary fee as when you foreclose your loan by paying the entire outstanding amount in advance, no need of paying any foreclosure fee as State Bank of india does not charge any prepayment fee.

Zero Penal Interest on loans up to Rs 25,000 – State Bank of India charges zero penalty interest so you can apply for Car loan for getting this benefit. For Loans above Rs.25,000 and if the irregularity exceeds EMI or installment amount, for a period of one month, then the penal interest rate would be charged at 2% per annum over and above the applicable interest rate on the overdue amount for a period of default.

Refinancing Your New Car – Do you want to apply for a loan but also wants to save your money? Yes, you can! State bank of India offers you to refinance on you new car for car purchased out of borrower's own funds at the rate of interest applicable to new car financing where car should not be more than 3 months old. So if you want to avail funds against your new car, SBI can be a good choice for you.

Optional Life Insurance Cover – You might be able to get a better rate for individual life insurance by applying for insurance on your own and providing medical information, especially if you are young and healthy. So availing loan from State Bank of India could be a good choice for you as this Bank provides you a add-on benefit of optional life insurance cover.

Compare SBI Car Loans to Other Banks

Bank Name SBI HDFC Bank ICICI Bank

Typical APR

9.20% - 9.70%

9% - 10.25% 9.75%

Loan Term

Maximum 84 months

12 months - 84 months Maximum 36 months

Maximum Lending Amount

Up to Rs. 1.20 Crores

Above Rs. 2 Crores in some cases

Up to Rs. 3 Crores Rs. 50 Lacs

Processing Fee

Rs. 1,000 to Rs. 1,500

0.4% of the loan amount

Min Rs. 3,000 to Max Rs. 10,000

2% of the loan amount

Max Rs. 15,000.

Time to Funding

 

Within 7 working days of approval  

Pre-Closure

Nil

3% to 6% of the outstanding loan amount 2.6% to 4.3% of the outstanding loan amount

State Bank of India provides loan with a maximum lending of up to Rs. 1.20 crore, while HDFC Bank provides loan up to maximum of 3 crores and in case of ICICI Bank, it provides loan up to maximum of Rs. 50 Lacs. The processing fee charged by the bank is Rs. 1,000 for loans up to Rs. 6 Lacs and Rs. 1,500 for loan amount above Rs. 6 Lac, while in case of HDFC Bank, it charges 0.4% of the loan amount or minimum Rs. 3,000 to maximum Rs. 10,000.

The typical APR in case of State Bank of India is ranging from 9.20% to up to maximum of 9.70% per annum and in case of HDFC Bank, it charges 9% to up to maximum of 10.25% of the loan amount while in case of ICICI Bank, it charges 9.75% per annum. You can repay your loan with a maximum tenure of 84 months in case of State Bank of India while in case of HDFC Bank you can repay your loan amount within 12 months to as long as 84 months and in case of ICICI Bank, you are allowed to repay your loan within a tenure of 36 months. State Bank of India does not charge any Pre-Closure charges and in case of HDFC Bank, it charges 3% to up to 6% of the outstanding loan amount while in case of ICICI Bank, the pre-closure charges are 2.6% to up to 4.3% of the outstanding loan amount.

Am I Eligible?

  • Age of the applicant should not be less than 21 years at the time of loan application.
  • Age of the applicant should not be more than 65 years at the time of loan maturity.
  • Minimum annual income must be Rs. 2.5 Lacs for permanent Government employee including PSUs, and Private Company or a reputed establishment.
  • Minimum annual income must be Rs. 4 Lacs for Self-Employed (Professionals and Businessmen) and Agriculturists.
  • If you are engaged in agricultural and allied activities having a net income of Rs. 4 Lacs, you can avail 3 times of net annual income.

Loan Offerings

SBI New Car Loan

  • State Bank of india offers this ultimate scheme for purchasing new passenger cars, Multi Utility Vehicles (MUVs) and Sport Utility Vehicles (SUVs) for Permanent Government employees including Public Sector Undertakings, Private company or a reputed establishment. You can avail up to 48 times of your net monthly income but if you are a Self-Employed applicant either Professional or a Businessmen, then you can avail as high as 4 times of your Net Profit or Gross Taxable Income and if you are engaged in agricultural and allied activities, then you can avail maximum of 3 times of your Net Annual Income or you can avail funds up to 90% of the cost of the vehicle.
  • It is mandatory to have marginal money to be equal to 10% of the cost of the car. The maximum tenure to repay the loan amount is 84 months which is quite a long span of time. The interest rate equals to 9.20% per annum for employees including PMSP (Paramilitary Salary Package) and pensioners who are disbursing salary through SBI Corporate Salary Account and for Businessmen, Professionals/Self Employed, Agriculturist, Pensioners, the interest rate equals to 9.20% per annum for disbursing salary from any other medium than SBI Account, where the credit score of the applicant is 750 points or above.
  • The Interest rate equals to 9.40% per annum for employees who are disbursing salary from any other medium than SBI Account and the where credit score of the applicant is 700 points to 749 points. The Interest rate equals to 9.65% per annum for female applicant who are disbursing salary from any other medium than SBI Account, where credit score of the applicant is less than 700 points. The Interest rate equals to 9.70% per annum for male applicant who are disbursing salary from any other medium than SBI Account, where the credit score of the applicant is less than 700 points. For loan amount of Rs. 5 lacs and above, the lower credit score will be considered from either of the two credit score companies. Vehicle purchased out of the funds will be hypothecated against the loan amount.
  • Documents required for Salaried:
    • Statement of bank account for last 6 months.
    • Latest Salary Slip
    • I.T. Returns or Form 16 for the last 2 years.
    • KYC Details with 2 passport size photographs
  • Documents required for Self-Employed:
    • Statement of bank account of last 6 months
    • 2 passport size photographs along with KYC Documents
    • Income tax returns or form number 16 of the last 2 years
    • Profit and loss statement (P/L statement), audited Balance sheet of last 2 years
    • Shop and establishment act certificate
    • Sales tax certificate
    • Small Scale Industries (SSI) registered certificate
    • Copy of Partnership
  • Documents required for Agriculturists:
    • If you are engaged in Direct agricultural activities (Crop Cultivation) –
      • For applicants who are engaged in Khasra / Chitta Adangal, you have to show your cropping pattern and all the land should be on free hold basis and the ownership proof is to be in the name of borrower.
      • For applicants who are engaged in Patta / Khatoni, then you have to show your land holding with photographs and all the land should be on free hold basis and the ownership proof is to be in the name of borrower.
    • If you are engaged in allied agricultural activities ( Diary / Poultry / Plantation / Horticulture) then you have to submit your documentary proof of running the activities to be provided.
    • Statement of bank account of last 6 months
    • 2 passport size photographs with KYC Documents

SBI Car Loan Rate of Interest

Car Loan Type Applicable Interest Rate

SBI New Car Loan

9.20% - 9.70% per annum

How to Apply for Union Bank of India Home Loan?

At Paisa

    • Click on ''APPLY NOW'' button
    • Fill the necessary details such as
      • Desired Loan Amount
      • Purpose of your loan
      • Your monthly salary/income
      • Select whether you are salaried or self-employed
      • Your name, email-id, contact no etc.
    • Now, click on ''SUBMIT''

At nearest SBI Branch

    • Walkin to the nearest branch of State Bank of India along with KYC documents and application form. You can download the application for SBI Car Loan form from here.
    • Fill in the required details and attach your important documents.
    • Now, you can submit this application from at any of your nearest branch of State Bank of India

After I Apply?

Check Loan Status

  • Through SBI Status Tracking Page
    • Click here to go to the status tracking page.
    • Select your type of loan ie. Retail Loan / Agricultural Loan / Credit Card
    • Enter your reference number and your phone number
    • Now you can click on ''TRACK''
  • Through SBI Customer Care
    • Dial SBI 24x7 helpline number 1800-11-2211 (toll-free), 1800-425-3800 (toll-free) or 080-26599990.
    • Press 1 for Hindi, Press 2 for English, For Telugu Press 3, Press 4 for Marathi, Press 5 for Kanada, 6 for Tamil, 7 for Tamil, 8 for Bengali, and for other languages Press 9.
    • Press 2 and then wait for the customer care executive to connect your call to them.

Fees & Penalties

Type of Charge Applicable Charges

Processing Charges

Rs. 1,000

For loan amount upto Rs. 6 Lacs.


Rs. 1,500

For loan amount above Rs. 6 Lacs

Foreclosure Charges

NIL

Penal Interest

NIL

For loans up to Rs. 25,000

2% per annum on the overdue amount

For loans above Rs. 25,000 where EMI is due for a period of one month or more.

The processing fee charged by State Bank of India for providing Car Loans will be Rs. 1,000 for the loan amount which is up to maximum of Rs. 6 Lacs and for the applicants who are availing loan of more than Rs. 6 Lacs, they will have to pay Rs. 1,500 as a processing fee. There are no foreclosure charges charged by the State Bank of India and for loans up to Rs. 25,000, no penal fees will be charged but for applicants who are availing loan above Rs. 25,000 and where EMI is due for a period of one month or more, then 2% per annum will be charged as a Penal Interest.

FAQs

How the interest is calculated on SBI Car Loan?

The interest on the availed loan will be calculated on the daily reducing balance.

Do I need a co-applicant to avail SBI Car Loan?

You must have a co-applicant if your income doesn't meet the income criteria for SBI Car Loan. A co-applicant can be a spouse or a family member.

Is there any concession provided in interest rate for the female customers?

Yes, SBI offers a 0.05% concession for the female customers.

What are the applicable processing charges on SBI Car Loan?

A processing charge of Rs. 1,000 is applicable for loan amount less than or equal to Rs.6 lac. and Rs. 1,500 will be charged for loan amount exceeding Rs. 6 lacs.