SBI increases salary limit for Car Loans and modified the disbursal criteria.
Earlier, the minimum wage required was Rs. 2.5 Lakh(net) which is increased to Rs. 6 Lakh per annum. This will affect the business of Cars remarkably. This will also adversely affect potential buyers as 90% of those buying cars depend on auto loans. The people buying a car for the first time usually prefer cars like Maruti Alto or Hyundai Eon, and most of them may not fall into the income bracket of Rs 6 lakh per year fixed by the SBI.
This decision by the SBI will have an adverse impact on the overall economy of the country, said Alok Kumar Sabu, president of the Malabar Chamber of Commerce.