SBI Car Loan

State Bank of India is the largest government co-owned bank in India. Popularly known as SBI, the bank has played a significant role in heralding the era of the organized banking sector in India. SBI offers a wide range of affordable services to individuals of all earning classes, as well as corporate businesses.

The headquarters of SBI is located in Mumbai, and the bank has more than 24,000 branches since its merger with five more associate banks. Such an extensive network of branch offices is impressive and speaks volumes of the bank’s position in the banking industry. The bank offers products like  credit cards, home loans, personal loans, and much more.

Cars are rapidly becoming a necessity rather than a luxury. SBI recognizes this growing need, and has come up with affordable car loans to help customers buy their dream cars. The loan can be used to buy a passenger car, a multi-utility vehicle, or a sport utility vehicle. If you can't afford to keep paying, you could even transfer the loan to someone else!

The loans have low interest rates and a straightforward application process. The loan tenures are optimally designed, with a maximum limit of 7 years. The loan amount depends on the on-road cost of the vehicle. SBI also charges very less on prepayment or foreclosure of the loan before the end of the loan tenure. The eligible age range is from 21 years to 65 years.

Features of SBI Car Loan

SBI car loans have a host of benefits and features that are customized for SBI customers, as given below:

1. Lowest car loan EMIs in the market

2. Flexibility in choosing the term of EMI payment

3. Attractive rates of interest under various car loan schemes

4. Minimal processing charges as compared to other banks

5. Complimentary SBI Life Insurance coverage

6. Loan amounts that cover up to 85% of the on-road prices of cars

7. Additional overdraft facility for SBI customers

8. The facility of earning SBI Rewardz Points on every EMI payment

SBI Car Loan Interest Rates

SBI offers attractive rates of interest on its car loans. The interest rates are set between 9.4% - 12.45% per annum.

Here is a summary of all the necessary information on SBI car loans.

Interest Rate	9.4% - 12.45%
Minimum Loan Amount	Rs 2 lakhs
Maximum Loan Amount	Upto 100% of the on-road price of the vehicle, for some schemes
Minimum Repayment Tenure	3 years
Maximum Repayment Tenure	8 years

Fees and Charges Associated with SBI Car Loan

Here is a list of charges associated with SBI car loans.

Loan Processing Charges	Rs 1,000 - Rs 1,500
Foreclosure Charges	3% of the loan amount + GST
Valuation Fees	nil
Prepayment or Part-payment Charges	1% of the loan amount + GST
Renewal Processing Fees	nil
Charges for Late Payment of Loan Amount	2% of the outstanding amount
Stamp Duty & other Statutory Charges	As applicable by state laws

SBI Car Loan EMI Calculator

Applicants can check the tentative amounts that they would have to pay as loan EMIs using the car loan calculator. The EMI calculator depends on the following factors.

1. Loan amount

2. Loan tenure

3. Interest rate

4. Current price of the car

5. Relationship with the bank

EMI Calculator Example

Raani would like to buy a new car, as office commute in public transport is hectic and tiring for her. She approaches SBI to take a car loan under the SBI Assured car loan scheme. She wants to buy a Maruti Suzuki Alto K10 whose on-road price is Rs 4.1 lakhs.

She receives a loan of Rs 3.6 lakhs with a loan tenure of 4 years, at an interest rate of 10.75% per annum. Using the car loan EMI calculator, Raani’s EMIs amount to a nominal amount of Rs. 9,235 per month.

Documentation Required For SBI Car Loans

The documents required for SBI car loans differs for different customers, according to their occupation. Mymoneykarma provides the list of essential documentation for each occupational category.

Salaried Customers

1. Copies of PAN card and Aadhaar card.

2. Copies of residence proof, such as electricity bills, rental agreements, property taxes, or telephone bills.

3. Salary slips for the last three months.

4. Copy of Form 16 for the last two years.

Self-employed Customers/ Businesspeople

1. Copies of PAN card and Aadhaar card.

2. Copies of residence proof, such as electricity bills, rental agreements, property taxes, or telephone bills.

3. Copies of ITR forms for the last two years.

4. Copies of Shop & Establishment Act Certificate.

5. Copies of sales tax certificate.

6. Audited balance sheet of the business for the last two years.

People Engaged in Agricultural Activities

1. Copies of PAN card and Aadhaar card.

2. Copies of residence proof, such as electricity bills, rental agreements, property taxes, or telephone bills.

3. Certificate of direct agricultural activity.

4. Copies of land ownership papers.

5. Documented proof of agricultural activities.

How to Apply For SBI Car Loans

The process of SBI car loans application is very straightforward. There are two different ways to avail the car loan.

1. Online registration:  Applicants can visit the SBI website, download the car loan application form, fill it in, and upload the required documents. On approval of the loan, the amount is routed to the applicant.

2. Walk-ins: Customers can also visit the nearest SBI branch and request for a car loan application form. They need to submit copies of the documents required along with the filled in application form. The loan will then be processed and approved in a few working days.

SBI Car Loan Schemes

SBI offers many car loan schemes to its customers. The highlights of each scheme are given below.

SBI New Car Loan Scheme

SBI offers this loan scheme to its customers for buying new cars. Here are a few features of SBI New Car Loan Scheme.

1. The loan can be used to buy new passenger cars, sport utility vehicles (SUV), or multi utility vehicles (MUV).

2. The interest is calculated daily on the reducing balance.

3. There is no need for EMI payment in advance.

4. The car loan covers up to 90% of the on-road price of the new car.

5. The loan comes with the option of availing SBI Life Insurance coverage at a nominal price.

Eligibility for SBI New Car Loan Scheme

1. Age range of 21-65 years

2. Must be a salaried individual, self-employed, businessperson, or be involved in agricultural activities.

3. Must have a decent credit score

4. Minimum income of Rs 2.5 lakhs per year for salaried individuals

5. Minimum income of Rs 3 lakhs per year for business people

6. Minimum income of Rs 4 lakhs per year for farmers and other people involved in agricultural activities.

SBI Certified Pre-Owned Car Loan

SBI offers this loan scheme to its customers for buying certified pre-owned cars from trusted dealerships such as Maruti TrueValue, Hyundai’s H-Promise, Tata’s Assured, and Mahindra’s First Choice. Here are a few features of SBI Certified Pre-Owned Car Loan Scheme.

1. The loan can be used to buy pre-owned passenger cars, sport utility vehicles (SUV), or multi utility vehicles (MUV).

2. The minimum loan amount is Rs 3 lakhs and the maximum is Rs 10 lakhs.

3. The maximum age of the pre-owned car is 5 years.

4. The processing of the car loan requires the following documents.

   1. Proforma invoice

   2. Copies of the seller’s RC book

   3. Copies of the seller’s motor insurance

Eligibility for SBI Pre-Owned Car Loan Scheme

1. Age range of 21-65 years

2. Must be a salaried employee, self-employed individual, businessperson, or be involved in agricultural activities.

3. Must have a decent credit score

4. Minimum income of Rs 2.5 lakhs per year for salaried individuals

5. Minimum income of Rs 3 lakhs per year for business people.

6. Minimum income of Rs 4 lakhs per year for farmers and other people involved in agricultural activities.

SBI Loyalty Car Loan Scheme

SBI offers this loan scheme to customers who have an existing home loan with SBI, for buying new cars. Here are a few features of SBI Loyalty Car Loan Scheme.

1. The loan can be used to buy new passenger cars, sport utility vehicles (SUV), or multi utility vehicles (MUV).

2. The car loan covers up to 100% of the on-road price of the new car.

3. The maximum loan amount is around 75% of the value of the house bought with SBI Home Loan.

4. Borrowers can avail the facility of adding a second co-borrower.

5. There is no prepayment penalty under this car loan scheme.

Eligibility for SBI Loyalty Car Loan Scheme

1. Age range of 21-65 years

2. Must be a salaried employee, self-employed individual, businessperson, or be involved in agricultural activities.

3. Must have a decent credit score

4. Minimum income of Rs 2 lakhs for the general public.

5. Minimum income of Rs 2.5 lakhs per year for salaried individuals

6. Minimum income of Rs 3 lakhs per year for business people.

7. Minimum income of Rs 4 lakhs per year for farmers and other people involved in agricultural activities.

SBI Assured Car Loan Scheme

SBI offers this car loan scheme to customers who have an existing banking relationship with SBI. Here are a few features of SBI Assured Car Loan Scheme.

1. The loan can be used to buy new passenger cars, sport utility vehicles (SUV), or multi utility vehicles (MUV).

2. The car loan covers up to 100% of the on-road price of the new car.

3. The loan can be availed against an existing SBI FD.

4. No prepayment penalty will be charged under this car loan scheme.

5. Minimum loan amount of Rs 2 lakhs

6. No limits on the maximum loan amount

Eligibility for SBI Assured Car Loan Scheme

1. Minimum age of 18 years

2. No maximum age limit.

3. Must be a salaried employee, self-employed individual, businessperson, or be involved in agricultural activities.

4. Must have a decent credit score

5. Minimum income of Rs 2.5 lakhs per year for salaried individuals

6. Minimum income of Rs 3 lakhs per year for business people.

7. Minimum income of Rs 4 lakhs per year for farmers and other people involved in agricultural activities.

SBI Car Loan Lite Scheme

SBI offers this loan scheme to its self-employed customers or customers involved in agricultural activities. Here are a few features of SBI Car Loan Lite Scheme.

1. The loan can be used to buy new passenger cars, sport utility vehicles (SUV), or multi utility vehicles (MUV).

2. The interest is calculated daily on the reducing balance.

3. There is no need for EMI payment in advance.

4. The car loan covers up to 75% of the on-road price of the new car.

5. Maximum loan amount of Rs 4 lakhs

6. Maximum loan tenure of 5 years

Eligibility for SBI Car Loan Lite Scheme

1. Age range of 21-65 years

2. Must be a self-employed individual, businessperson, or involved in agricultural activities.

3. Must have a decent credit score

4. Minimum income of Rs 3 lakhs per year for business people.

5. Minimum income of Rs 4 lakhs per year for farmers and other people involved in agricultural activities.

6. A minimum stay of 3 years at current residence.

7. A credit score of more than 700.

8. A minimum experience of 5 years in the current field of work/business.

 

Frequently Asked Questions

O:What credit score is needed for an SBI car loan

A: SBI has declared a minimum credit score requirement of 750 for availing a car loan. So when you decide to take a car loan from SBI, ensure that you improve your credit score or else your loan application will most likely get rejected.

Q: Can I avail SBI Car Loan for buying an old car?

A: Yes, under its Certified Pre-Owned Car Loan Scheme, SBI provides car loans for buying pre-owned cars.

Q: Why has my loan application been rejected?

A: For an SBI car loan to be approved, the applicant must meet all the eligibility criteria and submit all the required updated documentation within the stipulated time. The applicant should also have a good credit score, good debt-to-income ratio and no history of payment defaults in the past. If the above conditions are not met, the loan application can be rejected.

Q: What happens if I miss paying an EMI?

A: On any default on car loan EMI payment, SBI charges a penalty fee of 2% of the outstanding amount.

Q: What is the processing charge for SBI car loans?

A: SBI charges a nominal processing fee of Rs 1000 plus GST on its car loans.