Introduction
SBI car loan is a loan scheme offered by the State Bank of India (SBI) for financing the purchase of new or used cars. SBI car loan offers various benefits such as low interest rates, high loan amount, long repayment tenure, flexi pay option, optional insurance cover, online or app-based application and approval process, and tie-up arrangements with various car manufacturers and dealers.
Benefits of SBI Car Loan
Some of the benefits of SBI Car Loan are:
- You can get financing up to 90% of the on-road price of the car, which includes registration, insurance, and accessories.
- You can enjoy the lowest interest rates and monthly instalments, starting from 8.65% for new cars and 11.30% for used cars.
- You can repay the loan in up to 7 years for new cars and 5 years for used cars, with no prepayment or foreclosure charges after 1 year.
- You can opt for a flexi pay option, where you can pay lower EMIs for the first 6 or 12 months2.
- You can avail an optional SBI life insurance cover along with the car loan.
- You can apply online or through YONO app for some of the schemes.
- You can choose from different schemes for financing your new or used car, such as SBI New Car Loan Scheme, SBI Assured Car Loan Scheme, SBI Loyalty Car Loan Scheme, SBI Green Car Loan Scheme, and Certified Pre-owned Car Loan Scheme.
What are the different schemes available for SBI car loan?
If you are looking for a car loan from SBI, you have several options to choose from. SBI offers different schemes for financing your new or used car, with attractive interest rates, flexible repayment tenures, and minimal paperwork. Here are some of the features of the SBI car loan schemes:
- SBI New Car Loan Scheme: This scheme is for purchasing new passenger cars, multi utility vehicles (MUVs) and SUVs. You can get up to 90% of the on-road price of the car as loan amount, with interest rates ranging from 8.80% to 9.70% depending on your credit score. The repayment tenure can be up to 7 years, and there are no prepayment or foreclosure charges after 1 year. You can also opt for a flexi pay option, where you can pay lower EMIs for the first 6 or 12 months.
- SBI Assured Car Loan Scheme: This scheme is for existing term deposit customers of SBI, who can get 100% of the on-road price of the car as loan amount. The interest rate is linked to the term deposit rate, and the repayment tenure can be up to the remaining period of the term deposit. There are no income criteria or processing fee for this scheme.
- SBI Loyalty Car Loan Scheme: This scheme is for existing home loan borrowers of SBI, who can get a lower interest rate and longer repayment tenure for their car loan. The interest rate is based on your credit score, and can be as low as 8.75%. The repayment tenure can be up to 10 years, and there are no prepayment or foreclosure charges after 1 year.
- SBI Green Car Loan Scheme: This scheme is for purchasing electric cars, which are eco-friendly and cost-effective. You can get up to 90% of the on-road price of the car as loan amount, with interest rates ranging from 8.65% to 9.35% depending on your credit score. The repayment tenure can be up to 8 years, and there are no prepayment or foreclosure charges after 1 year.
- Certified Pre-owned Car Loan Scheme: This scheme is for purchasing certified pre-owned cars from reputed dealers or manufacturers. You can get up to 80% of the valuation amount of the car as loan amount, with interest rates ranging from 11.30% to 14.80% depending on your credit score. The repayment tenure can be up to 5 years, and there are no prepayment or foreclosure charges after 1 year.
How can I apply for SBI car loan?
Yes, you can apply for an SBI car loan online. There are two ways to do so:
- You can visit the SBI website and select the car loan scheme you are interested in. You can check your eligibility, EMI calculator, and other details on the website. You can also fill in the online application form and upload the necessary documents. You will get a loan quotation and a reference number after submitting the form.
- You can also use the SBI YONO app to apply for a car loan. You need to login to your YONO account and select the car loan option from the menu. You can conduct the eligibility check and request for the loan after entering the details of the car you want to purchase. You can also find the eligible amount and fill the application form on the app.
Both methods are fast and convenient, and you can get your car loan approved in 30 minutes. You can also visit your nearest SBI branch or call 1800-11-2211 for more information or assistance.
Eligibility Criteria for SBI car loan
The eligibility criteria for SBI car loan may vary depending on the scheme you choose, but some of the common ones are:
- Age: You should be at least 21 years old and below 65 or 70 years old, depending on the category.
- Income: You should have a minimum income or co-applicant income of Rs. 3 lakhs or more, depending on the category. For agriculturists, the minimum income is Rs. 4 lakhs. For term deposit customers, there are no income criteria.
- Loan amount: The maximum loan amount depends on the category and the type of car. SBI offers financing up to 90% of the on-road price of the car for new cars. For used cars, the maximum loan amount is Rs. 10 lakhs.
- Repayment tenure: The repayment tenure can be up to 7 years for new cars and 5 years for used cars. There are no prepayment or foreclosure charges after 1 year.
Documents Required for SBI car loan
The documents required for SBI car loan may vary depending on the scheme you choose, but some of the common ones are:
- Bank account statement of last six months.
- Two passport size photographs of borrower and/or co-applicant.
- Copy of passport, voter ID card or PAN card as identity proof.
- Address proof such as utility bills, ration card, Aadhaar card, etc.
- Income proof such as salary slip, Form 16, ITR, etc. (not required for agriculturists and term deposit customers).
- Asset liability statement in the bank’s standard format.
- Copy of identity card issued by the employer (for salaried individuals).
- Proof of business existence and income (for self-employed individuals and businessmen).
- Valuation report from a reputed dealer or manufacturer (for certified pre-owned cars).
- Term deposit receipt and necessary documents for charge on FD by the bank (for assured car loan scheme).
What are the interest rates and charges for SBI car loan?
The interest rates and charges for SBI car loan are based on your credit score and the scheme you choose. The interest rates range from 8.65% to 14.80% per annum depending on the type of car and your credit score. The processing fee is 0.51% of the loan amount, subject to a minimum of Rs. 1020 and a maximum of Rs. 10200. There are no prepayment or foreclosure charges after 1 year.
Maximum Amount of SBI car loan
The maximum amount of SBI car loan depends on various factors, such as the income of the applicant, the type of car, and the scheme chosen. However, some sources suggest that the maximum loan amount that can be availed for SBI car loan is Rs.10 lakh. The maximum loan amount is 3 times the net annual income of the applicant and the co-applicant, which should be a minimum of Rs. 4 lakhs. In the case of new cars, SBI car loan offers a loan amount up to 90% of the on-road price. The maximum loan amount that can be given in this case is 48 times of the net monthly income.
Frequently Asked Questions (FAQs)
- What is an SBI Car Loan?
- SBI Car Loan is a financial product offered by the State Bank of India to help individuals purchase a new or used car. It provides funds for buying a vehicle while allowing customers to repay the loan amount over a specified period.
- Who is eligible for an SBI Car Loan?
- Indian residents aged 21 to 68 years with a stable source of income are generally eligible for an SBI Car Loan. The bank may have specific criteria that applicants must meet.
- What types of vehicles can I finance with an SBI Car Loan?
- SBI Car Loans can be used to finance new and used cars, as well as SUVs and multi-utility vehicles (MUVs).
- How much can I borrow with an SBI Car Loan?
- The loan amount you can borrow depends on factors like your income, creditworthiness, and the cost of the vehicle. SBI typically offers loans ranging from 85% to 90% of the car’s on-road price.
- What is the tenure for SBI Car Loans?
- SBI offers flexible repayment tenures, usually ranging from 1 to 7 years. The tenure can vary depending on your preferences and the bank’s policies.
- What documents are required to apply for an SBI Car Loan?
- Commonly required documents include proof of identity, address, income, and the vehicle’s details. These may include Aadhar card, PAN card, salary slips, bank statements, and the invoice from the car dealer.
- What is the interest rate for SBI Car Loans?
- Interest rates for SBI Car Loans are subject to change and may vary based on several factors, including the loan amount, tenure, and the applicant’s credit score. It’s advisable to check with the bank for the current rates.
- Is a down payment required for an SBI Car Loan?
- Yes, a down payment is typically required for SBI Car Loans. The amount can vary but is generally around 10% to 15% of the car’s on-road price.
- Can I prepay or foreclose my SBI Car Loan?
- Yes, you can prepay or foreclose your SBI Car Loan before the completion of the tenure. However, some prepayment charges may apply, so it’s advisable to check with the bank for details.
- How can I apply for an SBI Car Loan?
- You can apply for an SBI Car Loan by visiting your nearest SBI branch, applying online through their website, or contacting their customer service for assistance.
- What happens if I miss an EMI payment?
- Missing an EMI payment can result in late payment charges and negatively impact your credit score. It’s essential to ensure timely repayments to avoid any penalties.
- Can I transfer my existing car loan to SBI for better terms?
- Yes, SBI may offer a balance transfer facility that allows you to transfer your existing car loan from another lender to SBI for potentially better interest rates and terms. Check with the bank for eligibility and details.
