|Type of Loan||Linkage||Effective Intrest Rate|
|Loan for new cars||0.15% above Base Rate||9.40%|
|Combo car loan||0.15% above Base Rate||9.40%|
|SBBJ Elite New Car Loan||0.15% above Base Rate||9.40%|
|Online loan for new car||0.15% above Base Rate||9.40%|
|Used car loan up to 3 years||6.25% above Base Rate||15.95%|
|Used car loan above 3 years||6.50% above Base Rate||16.20%|
With effect from 5th October 2016, the base rate of SBBJ is 9.25% p.a. The following table depicts the interest rates on the different car loan options offered by SBBJ.
State Bank of Bikaner and Jaipur has its origins dating back to 1943 when the Bank of Jaipur Ltd. and the Bank of Bikaner Ltd. came into existence. The banks were later incorporated into the State Bank of India as subsidiaries in 1960 and were renamed State Bank of Bikaner and Jaipur. The bank offers a wide range of financial products and services namely personal and corporate banking, international banking, and agricultural products.
The car loan offered by SBBJ comes with total transparency and attractive terms such as low interest rates and easy repayment tenures. Customers can opt for an SBBJ loan to buy new and used four wheelers including jeeps, MUC and SUVs. Used cars up to 5 years are considered.
|Processing fee||Rs. 750. SBBJ has an offer on processing charges of Rs. 500 till 31st December 2016.|
|Margin||15% of on road value|
|Maximum loan amount on new cars||No limit|
|Maximum loan amount on used cars||Rs. 15 lakhs|
|Maximum eligible loan amount||2.5 times net annual income or 30 times net monthly income|
|Repayment period||36-84 months|
You can calculate the interest payable on your SBBJ loan easily online. Follow these simple steps to figure out all the details of your potential loan.
Calculate the interest on your State Bank of Bikaner and Jaipur car loan using this formula: E = P*r*[(1+r)^n/(1+r)^n-1)]
Therefore, EMI = Principal X Rate of interest on a monthly basis X (1+rate of interest on a monthly basis) to the power of the loan tenure divided by [(1+rate of interest on a monthly basis) to the power of the loan tenure – 1]
E = EMI
P = Principal amount
R = Rate of interest per month
N = Number of years
For instance, if you take a car loan from SBBJ for Rs. 8 lakhs for 4 years, the rate of interest is 9.85%.
According to the calculator, your EMI will be Rs. 20232 and the interest payable will be Rs. 1,71,159. Your processing charges will be a flat Rs. 500. Totally, you will pay back Rs. 9,71,659.
An amortization schedule depicts your loan in accordance to each EMI you pay. The following table only depicts the earlier amount for an SBBJ loan sanctioned in October 2016 for the purchase of a new car taken for Rs. 8 lakhs for a tenure of 4 years. The rate of interest is 9.85%.
|Year||Principal Paid||Interest Paid||Total Payment||Outstanding loan balance|
|2015||Rs. 41,335||Rs. 19,362||Rs. 60,697||Rs. 7,58,665|
|2016||Rs. 1,75,860||Rs.66,930||Rs. 2,42,790||Rs. 5,82,805|
|2017||Rs. 1,93,985||Rs. 48,802||Rs. 2,42,787||Rs. 3,88,819|
|2018||Rs. 2,13,982||Rs. 28,811||Rs. 2,42,793||Rs. 1,74,839|
|2019||Rs. 1,74,838||Rs. 7,253||Rs. 1,82,091||Rs. 0|
Income - To be eligible for an SBBJ car loan, you should be earning at least Rs. 3 lakhs net annual income if you are a salaried employee. Whether you have a salary account with SBBJ is not of any concern when determining your loan approval. If you are self-employed, a professional, proprietor or a partnership firm, you need to show a net profit or gross taxable income of Rs. 4 lakhs. Agriculturists need a minimum net annual income of Rs. 4 lakh. Your income will determine your loan amount. A low income bracket will generally be more risky for banks as they are not well assured that you can repay the loan. A higher income bracket will make you a favourable customer and can fetch you better interest rates and terms on your car loan.
Credit Score – CIBIL score plays a very important role when it comes to loan approvals. If you have a low score, it would mean that you are not a credit-worthy customer and could possibly default on the SBBJ car loan. This could jeopardise your chances of getting a car loan. If you manage to get a car loan, the bank may impose stricter rules on your loan including higher interest rates. So maintaining a good credit score comes in handy when you apply for loans.
Debt-to-income ratio – If you hold prior debt such as a credit card balance, or a personal or home loan, this means you are already paying EMIs from your salary. This would eat into the eligible income. The more debt you have, the more liabilities you have, and banks will be reluctant to give you a loan as you may not be able to handle repaying so many EMIs. Generally banks let your total debt constitute up to 40-60% of your net income. A high debt-to-income ratio will be unfavourable and could mean higher interest rates.
Down Payment – Down payments play a serious role in your loan process. A large down payment is always welcomed. This means you have a lesser loan amount to clear during the tenure of your loan. So you have already paid a big chunk of the price of the car. You will be in a better position to bargaining for better terms on your loan including lower interest rates.
Car model and age – If you were to default on your loan and the bank realizes that you cannot repay the loan, they will have no choice but to resell the car you purchased. As with all commodities, some lose their value quicker than others. For car models that retain their value, banks can recover a good sum from reselling it to cover the outstanding loan amount due. With used cars, SBBJ provides loans for cars up to 5 years old. A second hand car in good working condition will have a greater value. These factors can also determine your interest rates.
CIBIL scores have come to be quite important in the credit world today. When you seek a loan to buy a house or a car or the like, banks will enquire into your CIBIL score to find out your creditworthiness. CIBIL is the Credit information Bureau of India Limited. Based on your credit behaviour, banks send reports to CIBIL as per the regulations and methods laid down by the Board. CIBIL then maintains a record of every credit customer’s history. You become a credit customer when you take a loan, a credit card, an overdraft or basically borrow money from a bank or financial institution. A good score will fetch you a better loan in terms of interest rates, norms, and processing. A low CIBIL score could mean that you have defaulted on payments on your credit card or loan in the past. It also analyses spending pattern and repayment behaviour such as paying only the minimum amount due on your credit card. This will negatively affect your SBBJ car loan to the point that you may be rejected for a car loan.
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