• SBI Car Loan Interest Rates 19 Jan 2022

    SBI Car Loan Interest Rate starts at 7.70% p.a. for New Car Loans and 9.50% p.a. for used car loans. These are fixed car loan interest rates and are one of the most affordable rates in India.

    The rates of interest for used cars are based on factors such as vehicle age, loan tenure, nature of the loan such as top-up, refinance, and so on.

    SBI Car Loan

    Features New Car Loan Scheme Used Car Loan Scheme
    Interest Rates

    7.70% p.a. onwards

    9.50% p.a. onwards
    Loan Tenure Up to a period of 7 years Maximum of 5 years
    Processing Fee 0.40% of the loan amount plus GST onwards. Maximum of Rs.7,500 and minimum of Rs.1,000 0.25% of the loan amount plus GST. Maximum of Rs.5,000
    Loan Amount Up to 90% of the car’s on-road price
    SBI Car Loan Interest Rates

    Published On : 2020-09-23

    Factors Affecting SBI Car Loan Interest Rates

    The rate of interest applicable on SBI car loans will be uniform throughout the tenure of the loan. The interest rates for new and used car loans range between 7.70% p.a. and 10.50% p.a. The interest rate you are eligible for is dependent on a few factors which have been mentioned below:

    1. Salary of the applicant – If you have a high salary, you will have a lower interest rate. It is important to consider your debt-to-income ratio while applying for a car loan. This means that according to the lender, you will not face any adversities during the repayment of the loan.
    2. Loan amount chosen by the applicant – The car loan amount that you choose will determine the interest rate you are eligible for. Higher the amount of loan, lower will be the rate of interest.
    3. Credit score of the applicant – Your credit history and score play an integral role in determining your car loan approval. You must have a credit score of at least 750, in order to be eligible for a car loan. In case your credit score is not high, chances of your car loan being rejected will be higher.
    4. Car type chosen by the applicant – The kind of car you want to purchase will play an important role in determining your car loan interest rate. A hatchback will attract a different interest rate as compared to the interest rate of a sedan. Moreover, with a car loan, your vehicle becomes a collateral for the entire tenure of the loan. This is the reason why banks consider the model and age of the car when deciding the rate of interest.
    5. Loan tenure selected by the applicant – The longer the tenure you choose, lower will be the rate of interest. In contrast to this, a shorter tenure will mean a higher interest rate. You must determine what is suitable for you.
    6. Applicant’s relationship with the bank – If you are borrowing a car loan from a bank that you share a good credit history with, it is likely that you will get a reasonable interest rate.

    FAQs on Sbi Car Loan Interest Rates

    What are the income criteria of SBI Car Loan Scheme?

    The net income of the applicant/co-applicant on a yearly basis should be a minimum of at least Rs.3 lakh.

    What documents are salaried professionals required to submit along with the car loan application form?

    Salaried professionals are required to keep the following documents handy for submission along with SBI Car Loan application form:

    • Account statement for the preceding six months.
    • Two passport size photographs.
    • Identity proof
    • Proof of residence
    • Proof of income which can include Form 16 or latest pay slips.
    • Income Tax Returns for the preceding two years.
    What is the maximum loan amount with respect to self-employed individuals, professionals, or proprietary firms?

    The maximum amount that can be borrowed by the above-mentioned entities is 4 times their Net Profit or Gross Taxable Income according to ITR rules after the addition of depreciation and repayment of all loans.

    What are the elements included in ‘on-road price’?

    On-road price includes the following aspects:

    • Registration
    • Insurance and extended warranty
    • Cost of accessories
    • Annual maintenance contract
    Is there an insurance cover that I can purchase alongside SBI Car Loan?

    Yes, an optional SBI Life Insurance cover can be purchased by car loan applicants.

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