State Bank of India Car Loan Interest Rates

SBI – State Bank of Inida offers you the best deal for financing your new car and at the lowest interest rates, lowest EMIs, minimal paperwork and quick disbursement. So now you no longer have to wait long for the loan approval procedure. There are certain things to keep in mind such as buying a brand new car or a used one as the rate of interest varies between the two.

In this article, we will look at all aspects pertaining to State Bank of India Car Loan.

Types of car loan schemes of SBI

Interest rates of SBI car loans
 

The rates provided below are effective from 10 June 2020 and 1-year MCLR is at 7%.

Features and benefits of SBI car loans

• Get financing up to 90% of the on-road price of the vehicle.
• Get longest repayment tenure of up to 7 years.
• No advance EMI to be paid.
• SBI life insurance cover is available along with the car loan (optional).
• Interest is calculated on a daily reducing balance basis.
• Low-interest rates and monthly instalments.
• Financing available on new and used passenger cars, MUVs, and SUVs.

Eligibility for SBI car loans

For New Cars:

• Age of Applicant: 21 to 67 years

For Used Cars:

• Cost of Vehicle:
  • For salaried applicants: NAI-Rs.2,50,000 and above.
  • For self-employed professionals and other applicants: NAI-Rs.3,00,000 and above.
  • For persons engaged in agriculture and allied activities: NAI-Rs.4,00,000 and above.
• Age of Vehicle: 8 years
• Repayment Tenure: 8 years-the age of the vehicle (maximum 5 years).
• EMI/NMI Ratio: Depending on Net Annual Income, EMI/NMI ratio will be as under:
  • Up to Rs. 5 lakh : 50%
  • Above Rs. 10 lakh: 70%

Documents required for SBI car loans

For New Cars:

• Salaried applicants:
  • Statement of bank account for the last six months.
  • Two passport size photographs.
  • Income Proof: Latest salary slip, Form 16.
  • IT returns or Form 16 for the last two years.
  • Proof of Identity: (Copy of any one) Passport/PAN Card/Voters ID card/Driving License, etc. 
  • Address Proof: (Copy of any one) Ration card/Driving License/Voters ID card/Passport/Telephone Bill/Electricity Bill/Life Insurance policy.
  • Form 16/ITR is waived for our salary package customers who are maintaining their salary account with the bank for a minimum of 12 months.
  • Statement of bank account (for six months) is waived for salary package customers who are maintaining salary accounts with SBI.
• For non-salaried applicants/professionals/businessmen:
  • Statement of bank account for last six months.
  • Two passport size photographs.
  • Proof of Identity.
  • Address Proof.
  • Income Proof: ITR for last two years.
  • IT returns or Form 16 for the last two years.
  • Audited balance sheet, P&L statement for two years, shop and establishment act certificate/sales tax certificate/SSI registered certificate/copy of partnership.
• Those engaged in agricultural and allied activities:
  • Statement of bank account for the last six months.
  • Two passport size photographs.
  • Proof of Identity.
  • Address Proof.
  • Direct agricultural activity (crop cultivation):
    • Khasra/Chitta Adangal (showing cropping pattern) Patta/Khatoni (showing landholding) with a photograph. 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 to be provided.

For Used Cars:

• At the time of application:
  • Proforma Invoice
  • Copy of Seller’s RC Book
  • Copy of Seller’s Motor Insurance
• At the time of disbursement:
  • Sale agreement between dealer and seller, may or may not be stamped OR Undertaking from seller that he has sold the vehicle, received sale consideration and has no claim whatsoever.
  • Undertaking from the dealer to the financier instead of stamped Indemnity.
  • Hypothecation clearance letter from bank along with copies of HPTER (Form 35), wherever applicable.
  • Correspondence with the insurance company regarding the change in the insured’s name and financier.

SBI car loan fees and charges

How to calculate EMI on SBI car loans

Use our car loan EMI calculator to figure out the monthly instalments you must pay for a specific loan amount to finance your dream car.

Frequently Asked Questions

Do I have to pay any penalty if I miss any payment?

You will have to pay a penalty of 2% per month over and above the applicable interest rate on the overdue amount for the period of overdue.

Should I pay a prepayment penalty?

There is no prepayment penalty in the case of Loyalty Car Loan Scheme. Please check with the bank personnel for more details.

How do I apply for a car loan with SBI?

You may dial 1800-11-2211 to get more details on the car loan and apply for one. On the other hand, you may give a missed call 7208933142 or SMS ‘CAR’ to 7208933145 to get a call from the customer service centre to apply for the loan.

What are Salary Package Accounts?

Corporate Salary Package customers would include all types of customers maintaining salary accounts with SBI. This includes employees of state/Central Government, PSUs, corporations and listed private sector companies maintaining Corporate Salary Package accounts with us. This would also include Railway Salary Package, Police Salary Package, all Defense Salary Packages and PMSP Pensioners.

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