SBI Car Loan

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SBI Car Loan

SBI Car Loan Key Features – Jan 2021

SBI Car loan Rate of Interest

7% per annum

Min Loan Amount 100,000
Max Loan Amount
(Loan to Value)
Loan up to 85% of On Road Price
or 100% of Ex-showroom Price
Loan Tenure 1 year to 7 years
Lowest EMI / Lac ₹ 1,559
Minimum Net Monthly Income ₹ 25,000
Minimum ITR for Self Employed ₹ 300,000
Age Criteria Salaried: 21 years to 65 years
Self Employed: 21 years to 65 years
Types of Cars For All New Passenger Cars, Multi Utility Vehicles (MUVs), and Sport Utility Vehicle (SUVs).
Processing Fee Up to 0.40% Only
SBI car loan Foreclosure Charges No foreclosure charges
Basic Documentation ID Proof, Address Proof, Salary Slip, Bank Statement, and Car Quotation

About SBI Bank Car Loan

State Bank of India is an SBI civil division banking and financial services legal organization headquartered in Mumbai, Maharashtra. It works on major business divisions like corporate banking, insurance, investment, mortgage credits, etc.

SBI provides Car Loan at very reasonable rates of interest to the customer for purchasing their desire car whether new or second hand. It is a readily available loan that can be obtained by anyone even by ones who have a somewhat low credit/ CIBIL score.

Advantages of SBI Car Loan

SBI Car Loan

SBI Car Loan Eligibility

Salaried Individual
  • Age – 21-65 years of age
  • Net Monthly Income – should be a minimum of ₹ 25000
  • Employment Duration – Minimum 1 year
  • Income Eligibility – Depends on Form 16 and Salary Slip
Self-Employed Individuals
  • Age – 21-65 years of age
  • Minimum ITR  – Rs. 4 lakh, Rs. 18 lakhs (for selected car models)
  • Employment Duration – Minimum 3 years
  • Income Eligibility – Depends on the latest Income Tax Returns
Self-Employed Non-Individuals (Company/Partnership)
  • Minimum ITR  – Rs. 4 lakh, Rs. 18 lakhs (for selected car models)
  • Employment Duration – Minimum 3 years
  • The applicant has to present IT returns and audited financials of 2 years with Calculated Income.
Priority Customers
  • Applicant should have a vintage of at least 6 months
  • Average Quarterly Balance – Minimum Rs.1 lakh for last 2 quarters
  • Maximum Loan Amount – 3 X Average Quarterly Balance of Last 2 quarters

 

SBI Bank Car Loan Interest Rate, Fees, and Charges

Charges New Car Loan Used Car Loan
Current SBI car loan Interest Rate

7% per annum

.
14.80% p.a. to 16.80% p.a.
Processing fee  0.40% of the loan amount 0.51% of the loan amount
Issuance of Duplicate Repayment Schedule Charges Rs.500 per instance Rs.500 per instance
Foreclosure Charges nil 5% of the principal outstanding
Penal Interest 2% per month 2% per month
SBI car loan Part Payment charges 5% of the paid amount 5% of the paid amount
Cheque/Instrument Swap Charge Rs.500 per instance Rs.500 per instance
Documentation Charge Rs.500 per instance Rs.500 per instance
Issuance of Duplicate No Dues Certificate Charges Rs.500 per instance Rs.500 per instance
Registration Certification Collection Charge Rs.200 per instance Rs.200 per instance
Cheque Bounce/Instrument Return Charges Rs.500 per instance Rs.500 per instance
Issuance of Duplicate Statement Charges Rs.500 per instance Rs.500 per instance
Loan Cancellation/Re-booking Charges Rs.2,500 per instance Rs.2,500 per instance
Issuance of Credit Report Rs.50 per instance Rs.50 per instance

 

How to Increase Your Eligibility for SBI Car Loan

  • Opt for a shorter tenure – When you opt for a shorter tenure to repay the money, the EMI that you will be paying each month will be higher. This will be an indication of your higher repayment capacity which will build a sense of confidence in you. So, if you wish to boost your eligibility for a car loan, you can opt for a shorter repayment tenure.
  • Keep your credit score in check – If you wish to increase your eligibility for an SBI car loan, ensure that you have a credit score of over 750. You can use the Free Credit Score tool to check and maintain such a healthy credit score. Checking your credit score regularly will allow you to take corrective measures to improve it if your score is low or if it gives you the confidence to approach the bank if it is high.
  • Maintain a low debt-to-income ratio – A low debt-to-income ratio means that you have a good balance between your earnings and your spendings. Before banks decide to lend to you, they will check the percentage of your earnings that goes into paying your debts and a low debt-to-income ratio will indicate your high repayment capacity. To enhance your eligibility for a car loan, you should ensure that you maintain a low debt-to-income ratio.
  • Apply for a loan for a lower amount – By applying for a loan for a lower amount, you can increase your eligibility for an SBI car loan. A lower loan amount means that the loan will be repaid faster. Therefore, the chances of you being eligible for a loan are higher.

Tips to decide the right amount of EMI

The equated monthly instalment (EMI) balance and the gross interest payable on your personal loan are affected by the maturity term. A longer tenure will result in lower EMIs, while a shorter one will result in a higher EMI number. If you want a longer loan term, you can pay a higher interest rate over the course of the loan.

Recognize your monthly budget

One of the most important considerations that can help you select the right tenure. Make a list of your monthly obligations and compare them to your monthly revenue to figure out how much money you have left over. You should pick a tenure that fits best within the budget which does not put you under undue financial strain per month based on what’s left over.

Examine your economical potential outlook

If you’re employed and due for a raise in the immediate future, you’ll have enough discretionary money to cover a higher EMI each month. This way, you’ll not only pay off the debt sooner, but you’ll also save money on interest. This scrutiny will add to the pressure until the climb, but it will pay off in the end.

Calculate your EMI with an EMI Calculator

An easy-to-use platform that provides you with a comprehensive view of the loan’s financials, assisting you in making important choices about the Personal Loan, such as the word easy-to-use calculator that can help you measure your EMI and get a quick breakdown of the different fees associated with your loan. This app can also be used to compare loan deals from different banks in order to find the one that best fits your needs.

Factors Affecting SBI Car Loan Eligibility

The eligibility for availing of an SBI car will depend on the below-given factors:

  • Income – If your income is on the higher side, there is a good chance that your eligibility for an SBI car loan will be higher. This is because a higher income indicates a higher repayment capacity. To be eligible for an SBI car loan, your yearly income should be at least Rs.3 lakh.
  • Loan amount – Your eligibility for a car loan from HDFC will be higher if you apply for a lower loan amount as if the loan amount is lower, the bank knows that the loan will be paid off quicker. Hence, they will be more confident to give you the loan.
  • Repayment tenure – Choosing a longer repayment tenure can decrease your eligibility for a car loan. It might give an impression to the bank that you do not possess the ability to pay the loan. This is because longer repayment tenure results in lower EMIs and the lender will think that you cannot afford to pay higher EMIs. Therefore, the bank may be reluctant to lend to you.
  • Credit score – This is an important factor that every bank, including SBI, considers when finding out your eligibility for a car loan. A credit score of 750 and above is considered to be a healthy credit score by most lenders. If you have a healthy credit score, banks will be happy to offer you a car loan and your eligibility will be much higher.
  • Relationship with the bank – As stated earlier, SBI offers instant car loans to their existing customers through the ZipDrive feature which allows SBI customers to can avail themselves of loans instantly, at their convenience, with very few documents required for a car loan. This indicates that your relationship with the bank is an important factor while determining your eligibility.

SBI Car Loan Documents Required

Salaried Individual

Category Documents Required
Identity Proof

 

(Any 1)

Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof

 

(Any 1)

Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Date of Birth Proof

 

(Any 1)

Birth Certificate
Passport
Driving Licence
PAN
Signature Proof

 

(Any 1)

Passport
Bankers Verification
PAN
Income Proof Latest Form 16 and Salary Slips
Bank Statement Bank statement of last 3 months
Employment Continuity Proof Work Experience Certificate
ITR of Form 16
Salary Slip with Joining Date
Appointment Letter
Letter of Relieving

Self-Employed Individuals

Category Documents Required
Identity Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Date of Birth Proof (Any 1) Birth Certificate
Passport
Driving Licence
PAN
Signature Proof (Any 1) Passport
Bankers Verification
PAN
Bank Statement Bank statement of last 3 months
Employment Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Business Proof Current Account Statement
Telephone Bill
Electricity Bill
Shop & Establishment Act Certificate
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Registered Lease Document with other utility bills

Self-Employed Non-Individuals:

1. Partnership Firms/Societies

Category Documents Required
Identity Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Address Proof (Any 1) Driving Licence
Aadhaar Card
Passport
PAN
Voter ID
Income Proof Audited Balance Sheet
P&L Account and ITR for the previous 2 years
Bank Statement Bank statement of last 3 months
Business Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Additional documents Authority Letter/PAN cards

2. Private Limited/Limited Companies

Category Documents Required
Identity Proof Copy of Latest MOA
Copy of Incorporation
Copy of Latest AOA
Address Proof (Any 1)
Current Account Statement
Telephone Bill
Electricity Bill
Shop & Establishment Act Certificate
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Registered Lease Document with other utility bills
Income Proof Audited Balance Sheet
P&L Account and ITR for the previous 2 years
Bank Statement Bank statement of last 3 months
Business Continuity Proof Shop & Establishment Act Certificate
Current Account Statement
SSI or MSME Registration Certificate
Sales Tax or VAT Certificate
Additional documents
List of Directors and Shareholding Partners
PAN Card
Board Resolution
Certificate of Commencement of Business for Ltd. Co.

SBI Car Loan EMI Calculator

With this SBI car loan interest  rate calculator, the applicant has the option to know the EMI’s before availing a Car Loan. Thus, you can easily check through the link below:

Car Loan EMI Calculator

SBI Car Loan Types

SBI car loan offers different types of car loans to its customers. You have the option of choosing the offer which suits your need the best. It offers the following types of Car Loans:

  1. New Car Loan –  Those who wish to buy a new car, this is the scheme for you. You can take SBI Car Loan for a minimum of Rs. 1 lakh and a minimum tenure of 7 years.
  2. SBI car loan Used Car Loan – If you wish to buy a used car then you can choose this scheme which offers a minimum loan of Rs. 1 lakh and a minimum tenure of 5 years.
  3. Loan Against Car – You can opt for this scheme if you require urgent funds where you can keep your cars as collateral with the bank where you can get Rs. 10 lakh or up to 50% of your car’s value.

SBI Car Loan Pre Calculated EMI

How to Apply for SBI Car Loan?

  1. Visit Dialabank and fill a form.
  2. Wait for a call from our Relationship Manager who will guide you throughout the process.
  3. You can compare different offers from banks and choose the one which suits your needs.
  4. Thus, easily apply for a Car Loan through Dialabank and enjoy the best offers.

Tips to decide the right amount of EMI

  • Ascertain the amount you need to borrow: It is important that before approaching a bank for a loan, you inform them about the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. Furthermore, based on the EMI you can service, try to opt for the lowest tenure of loans as long tenure loans can result in huge interest outgo.
  • Review your current obligations: Before taking a loan, it is advisable to check your expenses, including any EMI obligations that you have on your current loans. This assessment will help you to estimate the amount of EMI which you will be able to pay comfortably after taking into account other obligations. Once you arrive at the EMI, you can also decide on the right loan tenure.
  • Calculate your SBI car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. SBI provides an LTV up to 100 % of the ex-showroom price and expects the borrower to fund the remaining value of the property by own money
  • Multiplier-based loan amount eligibility: SBI also calculates your eligibility by applying a multiplier to your net take-home salary. This is the simplest method for calculating loan eligibility used by banks. Usually, it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your company that is based on its reputation, stability, size, and growth in turnover.
  • FOIR based loan amount eligibility: SBI will also estimate your Fixed Income to Obligations Ratio (FOIR) to find out the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. SBI’s assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short-term loans to improve your eligibility.

The car loan EMI – EMI changes in case of prepayment

In case you prepay your vehicle loan, a small penalty is issued. Prepayment in SBI is 5% from 13-24 months, 3% after 24 months. When you prepay, the outstanding balance on your vehicle loan reduces. SBI gives you two options:

  • Reduce your loan tenure and keep EMI on your car loan unchanged
  • Reduce the amount of EMI and keep your loan tenure the same

How to Calculate EMI on SBI Car Loan

Before you avail of a car loan from SBI, you may want to know how much amount you will be paying every month. This is simply known as EMIs or equated monthly installments and it offers an easy way to repay your car loan. By calculating the EMI, you will be able to budget your monthly expenses better.

You can calculate the EMI for your car loan by using the below-given formula:

E = P*r*[(1+r) ^n/((1+r) ^n-1)]

In the above formula, E is the EMI, P the principal amount, r the interest rate, and n the number of years or tenure of the loan.

You can also calculate the EMI by using the EMI Calculator tool wherein you just need to enter the loan amount, interest rate, repayment tenure, processing fee, etc. The tool will calculate the EMI and display it to you.

SBI Car Loan Customer Care – Toll-Free Number

India’s State Bank Customer Service for Car Loans

For all general inquiries, call 1800 425 3800, which is available 24 hours a day, seven days a week.

The State Bank of India is the country’s largest bank, with the largest foreign footprint among all Indian banks. SBI offers a variety of goods and services to clients all over the world, including loans, automated banking, government policies, credit cards, debit cards, prepaid cards, virtual cards, overseas banking, insurance, and deposits.

Processing fees* (Non – refundable)

Charges for Foreclosure – If you try to pay off the debt in full before the end of the year, you’ll have to pay these fees. After paying one EMI, SBI makes prepayment of the car loan with no penalty.

SBI charges 0.20 per cent of the loan balance as a processing fee. For the service fee, the minimum is $500 and the maximum is $3,750.

New Car Loan: Pre-owned car Loan & Loan against Car

State Bank of India is a Fortune-500 enterprise and one of the country’s top lenders. This public sector bank, which was established 200 years ago, is also a leading provider of used car loans. SBI offers the cheapest car loan program if you want to buy a used car that isn’t more than 5 years old. SBI used car loans allow you to fund the purchasing of pre-owned passenger cars, multi-utility vehicles (MUVs), and sport utility vehicles (SUVs) that are less than five years old. SBI has rapidly established itself as a successful pre-owned car financier due to its simple repayment plans and lower interest rates.

SBI Car Loan Interest Rates and Charges

 

Features

New Car Loan

Used Car Loan

Processing Fee

0.20% Min Rs. 500 Max Rs. 3,750

0.20% Max Rs. 5,000

Loan Tenure

Upto 7 years

Upto 5 years

Lowest EMI

₹ 1,534 per lakh

₹ 2,004 per lakh

Loan Amount

Upto 85% of on-road price

Upto 85% of on-road price

Prepayment Charges

Nil

2%

SBI  Bank Pre-Owned Car Loans Other Charges

 

Charges

SBI Car Loan Scheme

Processing fee

  • New Car: 0.40% of the loan amount plus GST. Maximum of Rs.7,500 plus GST.
  • Certified Pre-Owned Cars: 0.40% of the loan amount plus GST. Maximum of Rs.7,500 plus GST.

Financing

  • Up to 90% of the car’s ‘On-Road Price’ may be provided

SBI Car Loan for Top Selling Cars

Compare SBI Car Loan With Other Banks In India

Car loan Banks Interest Rates EMI per Rs 1 lakh for 7 Years
Bank Of Baroda Car Loan 8.80% – 10.55% Rs. 1,599 – Rs. 1,689
Canara Bank Car Loan 8.70% – 9.35% Rs. 1,594 – Rs. 1,627
Corporation Bank Car Loan 8.75% – 9.50% Rs. 1,596 – Rs. 1,634
HDFC Bank Car Loan 8.50% – 11.25% Rs. 1,584 – Rs. 1,725
SBI Car Loan 8.82% – 12.75% Rs. 1,600 – Rs. 1,806
Union Bank Car Loan 8.85% – 11.85% Rs. 1,601 – Rs. 1,757
SBI Car Loan 8.65% – 9.70% Rs. 1,609 – Rs. 1,645

Other Available Products from SBI

SBI Personal Loan SBI car loan SBI Home Loan
SBI Credit Card SBI Two Wheeler Loan SBI Education Loan

About SBI Bank

The Bank of Calcutta was India’s first bank, established in 1806, and developed into the State Bank of India over time (SBI). SBI has a 200-year track record of excellence. It is the Indian subcontinent’s oldest commercial bank, bolstering the country’s trillion-dollar economy and meeting the expectations of the country’s large population.

In terms of assets, deposits, offices, clients, and staff, the Bank is India’s largest commercial bank, with millions of customers from all walks of life putting their trust in it.

News

Rates on car loans and home loans will be raised by SBI

The State Bank of India (SBI) has increased its lending rates for home loans and auto loans by 0.2 per cent. As a result, home and auto loans will now be more expensive. Any loans with a term of up to three years would see a 20 basis point increase. In comparison to the previous loan rate of 7.9%, the current rate would be 8.1 per cent. SBI’s action follows the Reserve Bank of India’s (RBI) decision to raise the repo rate by 25 basis points.

From August, Mahindra vehicles would be more expensive.

This year, Mahindra announced that the price of its cars would rise by 2%, or Rs.30,000, beginning August The firm has yet to reveal the names of the models whose prices will rise, although it has confirmed that the price increases will only apply to certain models from its passenger vehicle lineup. The explanation for the price increase, according to the group, is the rise in commodity prices.

When it comes to carmakers announcing price hikes, Mahindra isn’t alone. Hyundai and Honda revealed last month, the prices of their vehicles would rise. The Hyundai Grand i10’s price will rise by Rs.23,000, while Honda’s models will see price increases ranging from Rs.10,000 to Rs.35,000. The explanation for the price hike, according to both automakers, is a rise in production costs.

FAQs for SBI Car Loan

What is SBI Car Loan?

SBI car loan is a loan provided by SBI for a new car or on a used car.

How can I get a Car Loan from SBI?

  1. Visit Dialabank and fill a form.
  2. Wait for a call from our Relationship Manager who will guide you throughout the SBI car loan process.
  3. You can compare different offers from banks and choose the one which suits your needs.
  4. Thus, easily apply for a Car Loan through Dialabank and enjoy the best offers.

✅ How does SBI Car Loan work?

When you will apply for a car loan, then you will get a call from our representative and then, there will a document verification process. Then, the loan amount will be credited to your account.

✅ What is the SBI Car Loan Interest Rates?

The SBI car loan interest rate is

7% per annum

✅ How to Check SBI Car Loan status?

You can track your SBI car loan status online on the Car loan status website.

✅ How to Calculate Car Loan Interest in SBI?

 
Use Dialabank’s EMI calculator to find out the interest as well as the EMI on your loan.
 

What is the maximum loan amount I can avail of on Car Loan from SBI?

The maximum loan amount you can avail of is 85% of the on-road price of the car.

What is the loan tenure of SBI Car Loan?

The loan tenure of the SBI car loan is a maximum of 7 years.

✅ Can I get a 100% Car Loan from SBI?

Yes, you can get a 100% of Ex-showroom Price car loan from SBI.

How much Processing Fee applies to SBI Car Loan?

The SBI car loan processing fee is a minimum of 0.40%.

✅ What are the EMI options available on the SBI car loan?

SBI Provides two EMI options Step-up EMI and Balloon EMI.

What are the SBI Car Loan Prepayment charges?

The SBI Car Loan prepayment charges are Nil.

Can I get a top-up loan on my existing SBI car loan?

You can get a top-up loan on your current car loan from SBI Bank for up to 150% of its value.

Do I need to provide a guarantor to avail myself of a car loan from SBI?

Generally, you don’t need a guarantor for a car loan. However, you may need a guarantor if you don’t fulfill the eligibility criteria for car loan.

How to get SBI Car Loan Statement online?

Get the SBI car loan account statement in person by visiting your branch and requesting a detailed statement.

                                                  or

You can get the statement online. To do this, you should have SBI internet banking activated.

How to Pay SBI Car Loan Interest Online?

Simply logon to online SBI payment to ‘see and pay’ your bills. You also get an electronic acknowledgment for every bill paid by you using e-PAY. You can also pay through Paytm.

What if I can’t pay the interest on SBI Car Loan for 3 months?

SBI imposes 24% of the exceptional amount or a Fee ranging from Rs.500 to Rs.5000 for not paying the EMI for 3 months.

How can I apply for EMI Moratorium on SBI Car Loan?

You can apply for EMI Moratorium on SBI Car Loans directly from the SBI website’s Loan corner.

✅ What is the number for the SBI Car Loan agent?

Call Dialabank at 9878981166 as it is one of the most trusted SBI Car Loan agents. Dialabank even ensures the best offers on your Car Loan.

✅ How to close an SBI car loan online?

SBI car Loan can be closed by visiting the nearest branch and clearing off the outstanding amount.

✅ What is SBI Car Loan Customer Care Number?

The SBI car loan contact number is 9878981166.

✅ How can I get an SBI Car loan NOC?

You can get NOC directly from the branch for SBI Car Loans.

✅ What is the SBI Car Loan closure procedure?

  • Just go to the bank with the documents.
  • Write a letter for pre-closure of the SBI Car Loan account.
  • Pay the pre-closure charges as per SBI Car Loan.

✅ What are the SBI Car Loan preclosure charges?

SBI Car Loan has no preclosure charges.

✅ What is the SBI Car Loan maximum tenure?

The SBI Car Loan’s maximum tenure is 7 years.

✅ What is the SBI Car Loan minimum tenure?

The SBI Car Loan minimum tenure is 1 year.

 

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