Will Car Loan SBI Option Fit into Your Pocket? The Answer is Here

Finally, after months of running around in the showrooms, you found a car of your choice. Now, you are in the talks with banks for a car loan to be disbursed to your account at the earliest. And your list of banks includes State Bank of India (SBI), the largest public lender with an extensive network of 24,000 branches and about 59,000 ATMs across India. It offers finance for your dream car as well. Doesn’t matter whether you are looking to buy a passenger car, sports utility vehicle (SUV) or multi-utility vehicle (MUV), car loan SBI is geared up to address your specific vehicle loan requirements. When we talk of a car loan, there is no hiding from the interest rate as it would decide the shape of the repayment. SBI has various car loan schemes featuring different interest rates. So, before applying for SBI car loan, it would be better to do a comprehensive study on the same.

Car Loan SBI Schemes

The bank has the following schemes for a car loan borrower.

• SBI New Car Loan Scheme

• SBI Combo Loan Scheme

• SBI NRI Car Loan Scheme

• Certified Pre-owned Car Loan

• SBI Loyalty Car Loan Scheme

So, there are five schemes catering different needs and market segments. Let’s see how these schemes stack up at the moment.

SBI New Car Loan Scheme

The lender offers a loan of upto 85% of the on-road price of the car for a maximum period of 7 years. The on-road price includes the additional costs after the ex-showroom price. These costs include registration, insurance, warranty, accessories, if any. While the interest rates for female borrowers are 9.20%, male counterparts would have to pay a slightly higher rate of 9.25% per annum. The interest rates charged are 1.20%-1.25% above 1-year MCLR of 8%. The processing fee ranges from ₹1,000-1,500 plus 18% GST, replacing the older regime of 15% service tax. However, if you happen to have a lump sum to pay off the outstanding balance of the loan during the tenure, you can do so without having to incur a prepayment penalty.

The loan is open to salaried, self-employed businessmen & professionals, along with the ones involved in agriculture and allied activities. The minimum age at the time of application is 21 years. While the maximum age allowed at the time of maturity is 65 years. For salaried, a minimum annual income of ₹2.5 lakhs is required, while self-employed must have a gross taxable income of ₹4 lakhs in a year to be eligible to apply for a car loan. Agriculturists and allied professionals are required to have an annual income of upto ₹4 lakhs.

SBI Combo Loan Scheme

A unique offering in itself, SBI Combo Loan Scheme is available to buy together a car and a 2-wheeler. The interest rate, processing fee and prepayment rules are same to the one offered under the new car loan scheme. Even the eligibility parameters are same. You need to send the invoices of both the vehicles along with the application form. However, the disbursement can be made for both the vehicles at the same time or the car loan part will get disbursed before the 2-wheeler portion.

Certified Pre-owned Car Loan

Looking for a loan on a second-hand car? Apply for SBI Certified Pre-owned car loan by which you can get a finance of upto 2.5 times of the net annual income. However, the car must not be over 5 years old. The loan tenure can be a maximum of 5 years. Be ready to pay an interest rate of 12.65%, 4.65% above 1-year MCLR. The processing fee constitutes 1% of the loan amount, with a minimum of ₹450 and a maximum of ₹9,100+18% GST tax rates.

A minimum net annual income of ₹2 lakhs is required. Salaried, self-employed and agriculturists can apply for a pre-owned car loan after attaining a minimum age of 21 years. At the time of loan maturity, the age must not be over 65 years.

SBI NRI Car Loan Scheme

This scheme is exclusively for non-resident Indians (NRIs) wanting to buy their dream 4-wheeler. However, a resident Indian must be there as a guarantor. The bank can finance a loan of as high as 18 times of the net monthly income (NMI). For a loan of upto ₹10 lakhs, the EMI/NMI ratio should not be more than 50% and 60% in case of more than ₹10 lakh loan. The interest rate ranges from 9.20%-9.25%, while the processing fee is ₹1,500 plus 18% GST tax slab rates list.

The NRI applicant should have a valid Indian passport with a steady flow of income. The bank seeks NRI candidates who are employed abroad for a minimum time of 2 years. Along with a valid work contract, the NRIs should maintain an average balance of ₹50,000 in the bank’s saving account in a year.

The guarantor can be anyone from the following list of resident Indians.

• Father

• Mother including the step-mother

• Spouse

• Son including step-son

• Wife of son

• Daughter including step-daughter

• Husband of the daughter

• Wife of a brother

• Husband of a sister

• Sister including step-sister

• Spouse’s siblings including the step-siblings

SBI Loyalty Car Loan Scheme

Under the scheme, a 100% on-road finance can be extended to the borrowers. It means you won’t have to pay any margin or say down payment that normally applies to a car loan. The maximum loan tenure is 7 years, with the interest rates being 9.10%-9.15% p.a. The loan is given against a house property. So, if you have a house property, you can be the beneficiary of this scheme. As much as 75% of the market value of the property minus the outstanding home loan balance, if any, can be given as a car loan. The market value will be decided based on the valuation report submitted by the valuer.

Barring the pre-owned car loan scheme, every scheme has an affordable range of interest rates. Even the pre-owned car interest rate of 12.65% is lesser than 14%-21% charged by the other banks. So, it won’t be bad if you apply for SBI car loan and give your finance the comfort against the inflation of today.