State Bank of India (SBI) offers attractive car loan options with competitive interest rates, flexible repayment terms, and easy processing to help you purchase new or used cars.
SBI Car Loan Interest Rates:
- Interest Rate: 8.65% to 9.65% per annum
- Loan Tenure: Up to 7 years (84 months)
- Loan Amount: Up to 90% of the on-road price of the car for new vehicles
- Processing Fee: 0.25% of the loan amount, subject to a minimum of ₹1,000 and a maximum of ₹10,000
Key Features of SBI Car Loan:
- Attractive Interest Rates: The loan interest rates start as low as 8.65%, making it an affordable option.
- Flexible Tenure: Repayment periods can extend up to 7 years, allowing borrowers to choose tenure based on their financial capabilities.
- High Loan Amount: SBI provides up to 90% financing for new cars, reducing the initial down payment requirement.
- Minimal Processing Fee: The processing fee is comparatively low, with a maximum cap of ₹10,000.
- No Prepayment Penalty: There are no prepayment charges, allowing you to pay off the loan early if desired.
Types of SBI Car Loans:
- SBI New Car Loan: Available for new car purchases.
- SBI Pre-Owned Car Loan: Financing for used cars (not older than five years).
- SBI NRI Car Loan: Special car loans for Non-Resident Indians (NRIs).
Interest Rates Based on Customer Profile:
- For Salaried Individuals: Interest rates start from 8.65% per annum.
- For Self-Employed Individuals: Interest rates start from 8.85% per annum.
- For Women Borrowers: There is often a concession of 0.05% on interest rates for women applicants.
Eligibility Criteria:
- Age: Between 21 to 70 years (at loan maturity)
- Employment: Both salaried and self-employed individuals are eligible.
- Minimum Income: ₹3 lakhs per annum (can vary based on the loan amount and tenure).
Documents Required:
- ID Proof: Aadhar Card, PAN Card, Passport, or Voter ID
- Income Proof: Latest salary slips for salaried employees or ITR (Income Tax Returns) for self-employed individuals
- Address Proof: Utility bills, rent agreement, or passport
- Vehicle Details: Proforma invoice from the car dealer
Example of EMI Calculation:
For a loan of ₹10,00,000 for a tenure of 5 years at an interest rate of 9%, the monthly EMI would be approximately ₹20,760. You can use SBI’s online EMI calculator to get precise figures based on the loan amount, tenure, and interest rate.
Additional Charges:
- Prepayment Charges: Nil, making it easier to repay the loan ahead of time.
- Late Payment Fees: 2% per month on the overdue EMI.
How to Apply for SBI Car Loan:
- Visit SBI Website: You can apply online through SBI’s website or visit a local branch.
- Submit the Application: Fill out the required details in the loan application form.
- Upload Documents: Submit necessary documents like ID proof, income proof, and car details.
- Loan Disbursal: After processing, the loan amount is disbursed directly to the dealer or into your account.
Conclusion:
SBI Car Loan is a competitive option for financing your dream vehicle. The affordable interest rates, high loan amount, and flexible repayment options make it a top choice for borrowers. Make sure to evaluate your financial situation and compare loan terms before choosing the loan that best fits your needs.
