The New Car Loan Scheme offered by State Bank of India (SBI) comes with affordable interest rates, low EMIs, minimum documentation, and easy disbursal. This scheme can be availed for the purchase of SUVs (Sport Utility Vehicles), MUVs (Multi Utility Vehicles) or new passenger cars.
Some of the main features of the scheme are mentioned in the table below:
Category | Features |
Financing | Under this scheme, SBI provides 100% of on-road price of the car as a loan. |
Long Repayment Period | SBI enables you to repay your car loan within a span of 84 months (7 years), which is the longest repayment tenure in the industry. This feature allows you ample time to repay your loan without any tensions. |
Competetive Interest Rate | This car loan scheme offers an extremely low interest rate and EMI compared to the current market prices. The rate of interest under this scheme is calculated by daily reducing balance method. However, there is no option of advance car loan EMI payment. |
No Pre-Payment Penalty | If you opt for this scheme, you can pre-pay the car loan at any given point of time without having to pay any pre-payment penalty. |
Foreclosure Penalty | No foreclosure penalty will be levied after two years. |
SBI Life Insurance | An optional SBI life insurance cover is available under this scheme. |
The interest rate and processing fee that is levied by SBI on its new car loan scheme are mentioned in the table below:
Category | Charges |
Interest Rate | 9.00% p.a. - 9.95% p.a. |
Processing Fee | Rs.750 plus GST – Rs.1,500 plus GST |
The following eligibility criteria should be met in order to avail an SBI New Car Loan:
If loan applicant is a regular employee of a public sector undertaking, state/central government, a reputed establishment, or a private company, SBI offers up to 48 times the net monthly income as the maximum loan amount to the applicant. | Income criteria - In this case, the net yearly income of the applicant and co-applicant should be at least Rs.3,00,000. |
If loan applicant is a professional, businessman, self-employed, or proprietary/partnership firms who fall under income tax assesses, the bank offers maximum loan amount of four times of you're the applicant's net profit or gross taxable income as calculated per ITR. | Income criteria - In this case, the gross taxable income or net profit should be Rs.4,00,00 p.a., where income of the co-applicant can also be clubbed together. |
If loan applicant is associated with agricultural and allied activities, he or she can avail three times the net annual income as the maximum loan amount under this scheme. | The net yearly income of applicant along with the co-applicant's should be a minimum of Rs.4,00,000. |
Documents required in order to apply for the SBI New Car Loan Scheme along with a duly signed application form are:
Salaried
Self-employed/Professionals/Businessmen
Individuals working in agricultural and allied activities:
Ownership proof of the land in the name of borrower. Land should be on freehold basis.
The on-road price of the car includes insurance and registration.
The maximum repayment tenure of the New Car Loan offered by SBI is 84 months.
The different types of cars for which you can avail SBI’s New Car Loan are SUVs, MUVs, and passenger vehicles.
No, SBI does not charge any prepayment charges on the New Car Loan.
No, SBI does not charge any foreclosure charges after two years on the New Car Loan.
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