SBI New Car Loan Scheme

SBI has launched the New Car Loan Scheme that 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.

Features of SBI New Car Loan Scheme:

Some of the main features of the scheme are:

• Financing – Under this scheme, SBI provides 85% of on-road price. On-road price of the car includes insurance, extended warranty, cost of accessories, annual maintenance contract, registration, etc.
• 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.
• Lowest interest rate and EMI – 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.

Men – Interest rate of 0.60% and MCLR of 9.70% p.a.

Women – Interest rate of 0.55% and MCLR of 9.65% p.a.

• No pre-payment penalty or foreclosure charges – 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 or foreclosure charges.
• Reimbursement of finance – SBI also reimburses finance on cars that were purchased using your own funds at an interest rate applicable to new car financing. However, the car should not be over three months old.
• SBI Life Insurance – An optional SBI life insurance cover is available under this scheme.
• Overdraft facility – SBI also allows you to opt for the overdraft facility under the new car loan scheme.

SBI Car Loan Eligibility:

The following eligibility criteria should be met in order to avail an SBI new car loan:

• Loan applicant should be in the age group of 21 to 65 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.

Income criteria – 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

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

Self-employed/Professionals/Businessmen

• Identity proof such as Passport, Driving Licence, Aadhar Card, etc.
• Residence proof such as electricity bill, telephone bill, ration card, Voter’s ID, etc.
• Income proof such as ITR filed in the last two years
• Bank account statement for the last six months
• Form 16 or ITR filed in the last two years.
• 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
• 2 passport size photographs of the applicant.

Individuals working in agricultural and allied activities:

• Identity proof such as Passport, Driving Licence, Aadhar Card, etc.
• Residence proof such as electricity bill, ration card, telephone bill, Voter’s ID, etc.

• 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.

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