SBI New Car Loan Scheme

SBI New Car Loan Interest Rate and Processing Fee

The interest rate and processing fee that is levied by SBI on its new car loan scheme are mentioned in the table below: 

Features of SBI New Car Loan Scheme 

The main features of the SBI’s New Car Loan Scheme are mentioned below: 

• 100% On-Road Financing: SBI provides financing up to the complete on-road price of your vehicle. The on-road price includes vehicle registration cost and insurance coverage, eliminating the need for immediate out-of-pocket expenditure. 

• Long Repayment Tenure: With a maximum tenure of 84 months (7 years), you get flexible payment options that reduce monthly EMI burden. This extended tenure helps borrowers manage their finances more effectively. 

• Fixed Interest Rate with Daily Reducing Balance Method: Your interest rate is fixed at the time of loan disbursement and remains constant throughout the loan tenure. The calculation follows the daily reducing balance method, meaning interest is computed on the remaining principal amount each day. 

• Zero Prepayment Charges: You can prepay your loan at any time without incurring additional penalties or prepayment charges. This flexibility allows you to clear your debt early and save on interest. 

• No Foreclosure Charges: After completing 24 months of the loan tenure, you can foreclose (fully repay) your loan without any penalty charges. This makes it easier to close the loan early if you have surplus funds. 

• Optional SBI Life Insurance Cover: Protect your loved ones by opting for voluntary SBI Life Insurance cover. This coverage ensures that if an unfortunate event occurs, your family is not burdened with the outstanding loan amount. 

• Minimal Paperwork and Quick Approval: SBI's streamlined process requires minimal documentation, and loan approval is fast. Qualified salaried employees enjoy additional benefits including waiver of Form 16/ITR and bank statement requirements if they maintain a salary account with SBI for at least 12 months. 

SBI Car Loan Eligibility Criteria 

For Salaried Employees 

This category includes regular employees of central public sector enterprises, government organisations, defence services, and private companies.

For Professionals and Self-Employed Individuals 

This includes professionals, businessmen, proprietors, and partnership firm owners who are income tax assesses. 

For Agricultural and Allied Activities 

Farmers and individuals engaged in agricultural, horticultural, or dairy-related activities can also apply.

Documents Required for SBI Green Car Loan 

Know Your Customer (KYC) Documents 

If you are an existing SBI customer: 

• No fresh KYC documents are required. 

• Address proof may be required only if your address has changed. 

• PAN Card copy is not required if already on record with SBI. 

If you are a new customer: 

• Proof of Identity: Passport, PAN Card, Aadhar number proof, Voter ID card, or Driving Licence (any one). 

• Proof of Address: Driving Licence, Voter ID card, Aadhar number proof, Passport, Telephone bill, Electricity bill, or Life Insurance policy (any one). 

• PAN Card: Mandatory if not available in bank records. 

Income and Employment Documents 

For Salaried Employees: 

• Bank account statement for the last 6 months (waived for SBI salary account holders). 

• Latest salary slip. 

• Form 16 for the last 2 years (may be waived for SBI salary account customers with 12 months account tenure). 

• Two passport-sized photographs. 

For Self-Employed and Business Professionals 

• Bank account statement for the last 6 months. 

• Income Tax Returns (ITR) for the last 2 years. 

• Audited Balance Sheet and Profit & Loss statement for 2 years. 

• Shop and establishment licence or sales tax certificate (if applicable). 

• SSI registration certificate or partnership deed (if applicable). 

• Two passport-sized photographs. 

For Agricultural Activity Engaged Individuals 

• Bank account statement for the last 6 months. 

• Proof of running agricultural activity (crop cultivation documents, dairy activity records, etc.). 

• Two passport-sized photographs. 

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