The time to file your tax returns is coming soon
The time to file your tax returns is coming soon
Keep calm and sign up for early access to our super filing platform

State Bank of India Car Loan Interest Rates

Updated on: Apr 1st, 2022


15 min read

social iconssocial iconssocial iconssocial icons

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

SBI New Car Loan Scheme
Financing up to 90% of on-road car price for new cars. Repayment tenure up to 7 years for new passenger cars, multi-utility vehicles (MUVs), and SUVs.
Certified Pre Owned Car Loan
Get a loan amount ranging from Rs.3 lakh up to Rs.10 lakh at a margin of 20%.
SBI Loyalty Car Loan Scheme
Get up to 100% on-road price where the maximum loan amount based on 75% of the present market value of the house property less present outstanding balance. The scheme is restricted to existing home loan borrowers
SBI Assured Car Loan Scheme
This scheme is for existing term deposit customers and comes with 100% of fixed deposit for the on-road price where the maximum loan amount is Rs.2 lakh with a repayment tenure of 3-7 years.
SBI Car Loan Lite Scheme
This scheme is for professionals and self-employed/businessmen who do not have income proof. The LTV for the loan is 25% of the on-road price with 75% of the on-road price. The repayment tenure for the loan is up to 5 years with a maximum loan amount of Rs.4 lakh.
Green Car Loan: For Electric Cars
The repayment tenure for this scheme is 3-8 years. A concession of 20 bps is applicable on interest rate across the category of customers. Financing up to 90% of the on-road price.

Interest rates of SBI car loans

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

Car Loan SchemeInterest Rate (p.a.)

  1. SBI Car Loan

  2. NRI Car Loan

  3. Assured Car Loan Scheme

From 7.75% to 8.45%
Loyalty Car Loan SchemeSBI Car Loan, NRI Car LoanFrom 7.70% to 8.40 % (CIC Based rates are applicable)
Certified Pre-owned Car Loan Scheme

Men: 2.25% above 1 year MCLR i.e. 9.25% p.a.

For Women: 2.20% above 1 year MCLR i.e. 9.20% p.a.

Certified Pre-owned Car Loan SchemeFrom 9.50% to 10.50% (CIC-based rates are applicable)
SBI Car Loan Lite


Rate of Interest


3.00% above 2 Yr MCLR i.e. 10.20% p.a.

From 689 to 756

4.00% above 2 Yr MCLR i.e. 11.20% p.a.

CIC ScoreInterest Rate Basis Loan Tenure
3-5 yearsAbove 5 years
757 and above0.75% + 1-year MCLR0.85% + 1-year MCLR
721-7561.00% + 1-year MCLR1.10% + 1-year MCLR
689-7201.25% + 1-year MCLR1.35% + 1-year MCLR
606-6881.35% + 1-year MCLR1.45% + 1-year MCLR
For Women, a concession of 5 basis points is provided
-17.75% to 8.10%

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

Eligible Applicants

Income Criteria

Maximum Loan Amount Offered

Regular employees of Central Public Sector Enterprises (Maharatnas/Navratnas/Miniratnas)

Defence Salary Package (DSP)

Para Military salary package (PMSP) 

Indian Coastal Guard Package (IGSP) 

Customers and Short Commissioned Officers of various Defence establishments

Net Annual Income of applicant and/or co-applicant, if any, should be a minimum of Rs.3,00,000

48 times the Net Monthly Income




Proprietary/partnership firms

Other income tax assesses

Net Profit or Gross Taxable income of Rs.3,00,000 p.a.

(income of co-applicant can be clubbed together)

4 times the Net Profit or Gross Taxable income as per ITR after adding back depreciation and repayment of all existing loans

Persons engaged in agriculture and allied activities

(Income tax return is not required in case of agriculturists)

Net Annual income of the applicant and/or co-applicant together should be a minimum of Rs.4,00,000

3 times the Net Annual Income

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

Scheme Name

Processing Fees

Max Processing Fees

Min Processing Fees

SBI Car Loan (For New Vehicle)

0.20% of Loan Amount + GST

Rs.3750 + GST

Rs.500 + GST

SBI NRI – Car Loan Scheme (For New Vehicle)

0.25% of Loan Amount + GST

Rs.5000 + GST


SBI Loyalty Car Loan Scheme (For Home Loan Borrowers)

0.125% of Loan Amount + GST

Rs.2500 + GST

Rs.250 + GST

Assured Car Loan




Certified Pre-Owned Car Loans

0.20% of Loan Amount + GST

Rs.5000 + GST


SBI Car Loan Lite

0.50% of Loan Amount + GST



SBI Green Car (Electric Vehicle)




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.

inline CTA
Invest in Direct Mutual Funds
Save taxes upto Rs 46,800, 0% commission

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use


ISO 27001

Data Center


SSL Certified Site

128-bit encryption