SBI New Car Loan Scheme

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.  

Updated On - 05 Sep 2025

Features of SBI New Car Loan Scheme

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.

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: 

Category 

Charges 

Interest Rate 

9.00% p.a. - 9.95% p.a.

Processing Fee 

Rs.750 plus GST – Rs.1,500 plus GST 

SBI Car Loan Eligibility:

The following eligibility criteria should be met in order to avail an SBI New Car Loan:

  1. Loan applicant should be in the age group of 21 to 70 years.

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 for New SBI Car Loan

Documents required in order to apply for the SBI New Car Loan Scheme along with a duly signed application form are:

Salaried

  1. Identity proof such as Passport, Driving Licence, Aadhar Card, etc.
  2. Residence proof such as ration card, electricity bill, telephone bill, Voter's ID, etc.
  3. Income proof such as Form 16 provided by the employer or latest pay slip
  4. Bank account statement for the last six months
  5. Income Tax Returns or Form 16 for the last two years
  6. 2 passport size photographs of the applicant.

Self-employed/Professionals/Businessmen

  1. Identity proof such as Passport, Driving Licence, Aadhar Card, etc.
  2. Residence proof such as electricity bill, telephone bill, ration card, Voter's ID, etc.
  3. Income proof such as ITR filed in the last two years
  4. Bank account statement for the last six months
  5. Form 16 or ITR filed in the last two years.
  6. Audited balance sheet, profit and loss statement for two years, sales tax certificate/Shop & establishment for two years/SSI registered certificate or copy of partnership
  7. 2 passport size photographs of the applicant.

Individuals working in agricultural and allied activities:

  1. Identity proof such as Passport, Driving Licence, Aadhar Card, etc.
  2. Residence proof such as electricity bill, ration card, telephone bill, Voter's ID, etc.
  1. Proof of direct agricultural activity (crop cultivation) - Displaying cropping pattern via Khasra/Chitta Adangal and land-holding via Patta/Khatoni with photograph.

Ownership proof of the land in the name of borrower. Land should be on freehold basis.

  1. Documentary proof of running allied agricultural activity like poultry, plantation/horticulture, dairy, etc.
  2. 2 passport size photographs of the applicant.

FAQs about the SBI New Car Loan Scheme

  • What does the on-road price of the car include?

    The on-road price of the car includes insurance and registration. 

  • What is the maximum repayment tenure of the New Car Loan offered by SBI?

    The maximum repayment tenure of the New Car Loan offered by SBI is 84 months.

  • What are the different types of cars for which I can avail SBI’s New Car Loan?

    The different types of cars for which you can avail SBI’s New Car Loan are SUVs, MUVs, and passenger vehicles. 

  • Does SBI charge any prepayment charges on the New Car Loan?

    No, SBI does not charge any prepayment charges on the New Car Loan. 

  • Does SBI charge any foreclosure 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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