With a 22% market share following recent mergers, India’s largest lender and the 43rd largest bank in the world, State Bank of India (SBI), is a well-known name in the car financing industry. With a 45 million customer base, SBI’s total assets are around INR 37 lakh crore. Having a sizable branch network with over 22,000 locations and an ATM network with 62,617 locations, SBI is a perfect way to receive the key to your dream car. SBI Car Loan provides financing for the acquisition of passenger automobiles, sports utility vehicles (SUVs), and multi-utility vehicles (MUVs) for a maximum of seven years.
For vehicles older than three months, however, the Car Loan financing is not an option. Within eight years of the 4-wheeler’s initial purchase date, used autos must be repaid. To qualify for a loan to purchase the specific automobile, however, the car must not be older than five years. For new automobiles, the bank charges an interest rate between 7.20 and 7.90% annually, and for used cars, it is between 9.25 and 12.75%.
With SBI Car Loan, you won’t have to pay any processing fees or foreclosure fees over the life of your loan. Your relationship with the public lender will only become stronger over time thanks to the competitive interest rates; longest loan term, and the flexible repayment alternatives.
Table of Contents
Interest Rates for SBI Car Loans in May 2023
|SBI Car Loan Interest Rate||8.65% to 9.65%|
|Processing Fee New Cars||Free of charge|
|Processing Fee for Used Cars:||1.25 percent of the loan amount plus GST; |
Minimum: 3750 INR + GST; Maximum: 10,000 INR + GST
|Repossession fees||NIL Loan|
|Tenure for New Cars||1-7 Years|
|For old cars||1–5 Years|
You can Also Apply for Axis Bank Car Loan
Who Qualifies for an SBI Car Loan?
SBI automobile loan applications are accepted from salaried employees, independent contractors, partnership businesses, and even agriculturalists. The SBI auto loan is available for both new and used vehicles, including those that fall under the umbrella categories of passenger cars, multi-utility vehicles (MUVs), sports utility vehicles (SUVs), and others.
How much financing is available for your ideal 4-wheeler?
For new autos, SBI’s auto lending programme offers loans up to 90% of the sticker price. The ex-showroom price is added to the fees of registration, road tax, insurance, and, if applicable, extras to create the on-road price. For pre-owned vehicles, the bank is able to provide funding totaling 80% of the appraised value. To negotiate the best price with the auto dealer, keep these factors in mind while you trade.
SBI Car Loan Qualification Requirements
For those who are salaried, self-employed, or farmers, SBI has established unique qualifying requirements for getting a car loan as listed below:
Criteria for loan application for people between age of 21 to 67 years
Salaried : If there is a co-applicant, their combined net annual salary should be at least 3 lakhs. They can get maximum loan amount equivalent to 48 times of their net monthly salary.
Self Employed : A yearly net profit or gross taxable income of 4 lakhs (You can club the income of co-applicants such as your spouse, son, daughter, sister or brother). When it come to calculating maximum loan amount; then after depreciation and repayment of any outstanding loans in your account have been taken into account, your net profit or gross taxable income will be 4 times that amount.
Agriculturist : The applicant’s and/or co-net applicant’s yearly income, if any, must equal 4 lakhs and maximum loan amount will be 3 times of net annual income.
First and foremost, there is the question of whether a person is eligible for an SBI vehicle loan. We have listed below the factors that will determine your chances to get loan.
- Age, Savings, Monthly Income, and Car Value
- Model of Car
- Credit Report
- Status of Employment for Salaried
- longevity in the self-employed market
- Your employer’s category for accommodations
The income and repayment capabilities of an individual play a significant role in determining the SBI Car loan amount eligibility. You must use the bank’s vehicle loan eligibility calculator to determine the precise loan amount SBI may offer you. Do you understand how the calculator works? If the answer is no, you have come to the proper place to learn how to use the calculator, which will first determine the per-loan EMI based on the term of the SBI Car Loan and the current interest rate. You may have a quick look at the per-lakh EMI computation in the table below.
|Loan Tenure||7 Years|
|SBI Car Loan Interest Rate||8.65% to 9.65%|
|Per Lakh EMI||INR 1591 – INR 1642|
Loyalty Car Loan Program from SBI
The SBI Loyalty auto loan programme has become well-known because it allows you to avoid paying the margin on the car’s sticker price that you would otherwise be required to. According to the plan, both salaried and self-employed individuals between the ages of 21 and 67 are eligible for an SBI car loan. Check out the table below for the interest rate, payback schedule, and eligibility for the amount of the car loan according to the programme.
|Minimum Income||The applicant’s and/or co-annual applicant’s net income must be at least 2,00,000.|
|Max Loan Eligibility||A security provided by the applicant or co-applicant, less any balance due on the home loan account, or 75% of the current market value of the property|
|SBI Car Loan Interest Rate||8.65% to 9.65% pa|
|Max Repayment period||7 years|
Documents Required for SBI Loan for both Salaried and Self employed applicant
1. Passport size Photo
2. For identify proof PAN card/ Passport/ Voter ID/ Driving License can be produced.
3. For Residence Proof one can again produce pasport/ voter ID, Electricity Bill/ Telephone Bill
4. Income Proof for salaried applicant a latest salary slip, Form 16 or ITR for past two years can be produced whereas for self employed last 2 years ITR, Profit & Loss Account Statement and Audited Balance Sheet for 2 Years, Sales Tax Certificate/Copy of Partnership/SSI Registered Certificate/Shop & Establishment Certificate can be produced.
5. Lastly a bank account statement for past 6 months is also required.
Application Form for SBI Auto Loan
Due to the bank’s expanding domestic and international reach, applying for an SBI car loan is simple and pleasant for potential customers. For a car loan application, you have two options: go online or stop by one of the many SBI locations. The most practical approach is to go to the bank’s official website and select the section devoted to auto loans. Click “Apply Now Online” as soon as the page for the auto loan appears. You will then be sent to a page with a default check mark next to the relationship you already have with the bank. if your relationship with the lender is excellent.
Once you’ve selected the correct choice, enter your contact information. As soon as you do this, a form for a vehicle loan will appear, requesting you to fill it out and attach the necessary paperwork so the bank can do the rest. However, if you do not already have a connection with SBI. Once you are led to the application form page, you must select “No” and proceed just as you would have if you had selected “Yes.”
The SBI is now going to examine your loan application. If you pass the inquiry, the bank will only grant a loan after carefully reviewing your identification, income, and address information.
Status of SBI Car Loan Applications
By going to the SBI website, you may check the progress of your loan application online. You must input your LOS Application ID, birthdate, and double-check the alphanumeric number displayed on the screen. The loan receipt must be checked to find the LOS Application ID if you can’t recall it. You will see the status of your vehicle loan application after inputting these information and pressing the submit button. Visit the SBI branch where you filed your loan application to find out the status.
Give a missed call to 7208933142 to learn more about SBI Car Loan, or text “CAR” to 7208933145 to receive a callback from SBI and to apply for SBI Car Loan.
Flexi pay option in car loan
Under Flexi pay option, borrowers can choose either of the following 2 options.
- For the first six months, the EMI will be 50% of the regular EMI, provided the loan tenure is at least 36 months.
- If the loan tenure is at least 60 months, the first 6 months’ EMI will be 50% of the regular EMI and the next 6 months’ EMI will be 75%.
You can also check SBI Car Loan EMI Calculator at SBI Website ,where you can calculate your car loan EMIs.
FAQ SBI Car Loan
Q. What makes of cars does SBI finance?
A. In other words, you can choose any car you want. We finance all makes of new cars, as well as second-hand cars.
Q. Can my spouse’s income be included for calculating the loan amount?
A. Providing your spouse joins as a co-borrower, your spouse’s income can be included.
Q. What is the repayment schedule like?
A. EMI is the minimum amount you must pay every month. The loan can be repaid in up to 84 EMIs.
Q. What is EMI? How is it calculated?
A. Your EMI is calculated depending on the tenor you choose, to repay your loan. It consists of both principal and interest components. You can also contact your nearest SBI branch for more information on EMIs for proposed loan amounts and tenors. If you choose to repay within a shorter period, you will have to pay a higher EMI than if you choose to repay over a longer term.
Q. What Security do I have to furnish for availing the Car Loan?
A. The vehicle financed is noted with the local Transport Authorities. Your spouse’s guarantee, if his/her income has been considered in determining the loan amount, is also required. Other security may also be required.
Q. How does SBI Car Loan compare with those offered by other institutions?
A. Our rates are completely transparent: you’ll know exactly how much interest and fees you’ll be charged when you take out a loan. Moreover, we’re offering the longest tenor of 84 months and provide finance for both new and old vehicles. Furthermore, we employ daily reducing balance instead of flat rate of interest or annual reducing balance, as used by other financiers. To make things even more convenient for our customers, we cover one-time road tax, registration fee and insurance premiums too. Plus, no advance EMIs are required!