SBI Car Loan interest rates are calculated based on monthly reducing balance. The Bank offers the lowest available interest on its car loan schemes. It has a very attractive interest rate exclusively for women. The car loan is offered for the purpose purchase of new Cars/used cars, Multi Utility Vehicles (MUVs) and Semi Utility Vehicles (SUVs).
| Particular | Charges |
|---|---|
| Interest Rate | For Women - 9.20% For Men - 9.25% |
| Maximum Loan Amount | For borrowers who earn Net Annual Income less than Rs. 10 lakhs: Maximum 85% of ‘on road price’ of the car. For borrowers who earn Net Annual Income of Rs. 10 lakhs and above: Maximum 80% of ‘on road price’ or 85% of ‘ex showroom price’ of the car, as chosen by the borrower. |
| Minimum & Maximum Car Loan Tenure | Minimum Tenure - 12 months Maximum Tenure - 84 Months (7 years) |
| Processing Fees/Charge | 0.51% of the loan amount subject to Minimum of Rs.1020/- and maximum of Rs. 10200/- |
| Pre-Closure Charges | Nil |
| EMI per Lakh (for a 7 year loan tenure at 9.85% interest) | Rs. 1,652* |
*Estimated value of EMI, when paid in advance.
State Bank of India is a leading public sector bank that offers a wide range of financial services to various individuals, corporates and more. It was nationalized in 1956 and has its headquarters in Mumbai, Maharashtra. It currently has over 16000 branches across India including 57 Zonal Offices and 14 regional hubs. Among its various popular personal finance products, it also offers prospective borrowers car loan schemes at attractive interest rates. Its various car loan schemes include: SBI New Car Loan Scheme, SBI Loyalty Car Loan Scheme (for its existing home finance borrowers), SBI Nano Youth Car Loan Scheme for purchase of TATA Nano car, etc.
If you wish to estimate the amount of EMI on your car loan amount to plan your loan budget, you can either use the BankBazaar car loan EMI calculator or manually calculate the EMI using the following formula:
EMI (E) = [P x r x (1+r)^n]/[(1+r)^n-1]
Where “E” is EMI, “P” is the principal amount of the loan, “R” is the rate of interest and “n” is the loan tenure. “R” is the interest rate applicable per month. Hence, in order to get the monthly interest rate (in percentage), the formula used on the annual interest rate is 9.25/(12 x 100).
For example: If you take a car loan for Rs. 5,00,000 at an interest rate of 9.25% with a loan tenure of 7 years, an estimate of the total interest payable would be Rs. 1,93,999/-, and the total payment made by you at the end of the loan term will be Rs. 6,93,999.
In the following exemplification, we can get an idea of how EMI is calculated for a loan amount of Rs. 4 lakhs for a loan term of 3 years at an interest rate of 9.25%. EMI per month is calculated from Oct 2016 to Sept 2018.
| EMI | Principal | Interest Amount | Total Payment (Principal + Interest) | Balance Due |
|---|---|---|---|---|
| Oct 2016 | Rs. 9,595 | Rs. 3,283 | Rs. 12,879 | Rs. 3,90,405 |
| Nov 2016 | Rs. 9,674 | Rs. 3,205 | Rs. 12,879 | Rs. 3,80,730 |
| Dec 2016 | Rs. 9,754 | Rs. 3,125 | Rs. 12,879 | Rs. 3,70,977 |
| EMI | Principal | Interest Amount | Total Payment (Principal + Interest) | Balance Due |
|---|---|---|---|---|
| 2015 | Rs. 29,023 | Rs. 9,613 | Rs. 38,636 | Rs. 3,70,977 |
| 2016 | Rs. 1,23,479 | Rs. 31,065 | Rs. 1,54,545 | Rs. 2,47,498 |
| 2017 | Rs. 1,36,206 | Rs. 18,338 | Rs. 1,54,545 | 1,11,291 |
| 2018 | Rs. 1,11,291 | Rs. 4,617 | Rs. 1,15,909 | Rs. 0 |
In this scenario, loan EMI per moth would be around Rs. 12,879 and the Total Interest Payable would be Rs. 63,634. Therefore, the total payment that you will have to make by the end of the loan tenure is Rs. 4,63,634.
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Although the interest rate stipulated by the bank remains the same in most cases, there are various factors that can influence a SBI car loan interest rate. This could also affect the loan amount offered to a borrower as well as the amount of EMI to be paid per month. These in turn determines the amount that is given as a loan to the prospective customer, along with the EMI to be paid. Few of these factors are given below.
One of the initial methods used by leading Indian Banks like SBI for evaluating the creditworthiness of an applicant is to check out his/her credit score that is provided by CIBIL. The CIBIL TransUnion Score is a 3 digit number which ranges from 300 up to 900. A person having a CIBIL Score of 700-750 and above is considered an ideal CIBIL score by most banks, to approve a loan to. The credit history of a borrower is projected by his/her CIBIL score and this is an important factor that influences the interest rate levied on a car loan. Most NBFCs and banks and scrutinize the applicant’s CIBIL score while processing their loan applications and weigh this against other factors in order to come to a loan approval decision. Higher scores ensure greater probability of procuring car loans at an attractive rate of interest. Higher CIBIL scores portrays a lower risk on loan defaults and thus, borrowers with a high CIBIL score can avail loans more easily compared to those with low CIBIL scores.
Basic things to know about loans against cars
When you are in need of immediate fund, but don’t have any gold jewellery or property to lend, your car can be your biggest asset. Banks these days are offering up to 70-80% of the market value of a car as loan against it. A loan against car comes with lower interest rates and the borrower can avail a good amount of fund.
But there are many factors that decide your eligibility to get a loan against your car. Read through this page to know about the eligibility criteria and other basic things related to such loans. Learn how this loan works.
How a car loan can help in a stress-free car purchase?
Purchasing a car is no more beyond your budget. Even if you don’t have enough cash in your account to fund the purchase, you can still own a car effortlessly. All you need to do is to opt for a car loan from a reliable lending agency or bank and buy a car without taking any financial stress.
Go through this article which very creatively explains how a personal loan can help you buy a car without getting yourself stressed. Make Car Loan purchase simpler and easier.
SBI Car Loan – Terms, Interest Rate and More
State Bank of India (SBI) is one of the most successful lenders in the country. It offers various financial products at affordable costs when compared to its counterparts. The bank offers an excellent car loan product. You can apply for an SBI Car Loan if you are at least 21 years old and not more than 65 years old. Whether you are a self-employed or salaried individual, you should have a steady source of income. The minimum income requirement is Rs.2.5 lakh p.a. You will get 85% of the on-road price as your car loan amount. Find out more about the SBI Car Loan here!
Things to consider before foreclosing a car loan
When you take a loan, you need to be very regular with the EMIs and loan repayments in order to avoid penalty. As such, foreclosing the loan before time might look like a better option to you. But before you decide to foreclose the loan, you need to make sure whether it is actually profitable or not.
This article will give you an idea about foreclosure and pre-payment of loan and how good it is for the borrowers. Know more on loan foreclosure
Tips to get better interest rates on car loan
Buying a car is like a dream come true for many. This is why, the process of sanctioning a car loan has been made quite easier and faster at present. But that’s not all. Getting the best interest rates on the loan is the most important thing to consider.
This article provides 5 smart tips to the borrowers to help them get better rate of interest on car loan. Also, here you will get to know 2 quick facts about car loan interest rates which will make it easier for you to grab the best deal.
GST of 18% is applicable on all banking products and services from the 1st of July, 2017.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar’s partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
Maruti Suzuki has opened bookings for the new WagonR week ahead of its launch. The facelift version of the popular hatchback will be launched on 23 January 2019. Customers can book the WagonR at any Maruti Suzuki dealership by making a payment of Rs.11,000. Additionally, customers can also make a booking online.
The new WagonR will be available with a 1.2-litre petrol engine and will come fitted with a number of safety features including airbags and rear parking sensors. Other safety features include an antilock braking system, electronic brakeforce distribution, a speed alert system and front seatbelt reminder. Additionally, the car will also come with a touchscreen infotainment system.
The 2019 WagonR is expected to be priced between Rs.4.45 lakh to Rs.5 lakh and will compete with the Hyundai Santro, Renault Kwid and the Datsun GO.
15 January 2019
The biggest car manufacturing company of South Korea with a record of producing a new car every 33 seconds – Hyundai Motors – has recorded its highest turnover and profit for all times in India during FY 2017-18. This has helped the vehicle manufacturer to cushion against the pressures from pivotal markets such as Europe, US, and China. During the financial year 2018-19, the total turnover of Hyundai Motor India witnessed a growth of 5% to stand at $5.8 billion, while the profit after tax of the company rose by 8% to stand at $300 million. On the other hand, the sales of the India segment of the company increased by 5% to 5.4 lakh units at the same time. However, a higher capacity utilisation and a rich model mix helped the company achieve a healthy profit growth during the fiscal year of 2017-18.
The market share of Hyundai Motors in India has ranged between 16% and 17%. Under the management of the Chief Executive Officer at Hyundai Motors, Y K Koo, the contribution of the company increased to stand at 16% from the previous 13%. While the factories of the company are currently operating at their 100% capacities, the South Korean car maker has been planning to shift the production from exports to the domestic market. Furthermore, with the increase in the sales of cars such as Verna, Elite i20, and Creta, the domestic revenue of Hyundai Motor witnessed a 9.5% growth at $4.2 billion.
4 January 2019
During the Consumer Electronics Show (CES) which is going to be held in Las Vegas next week Hyundai is going to show its walking prototype called 'Elevate'. This is one of the many outrageous ideas that are going to be introduced in the upcoming event. This advanced vehicle is said to have retractable legs which will enable it to literally stand up and dodge tough terrains and other obstacles on its way. Though earlier, Jeep Wrangler has launched cars with advanced technologies to travel through strenuous regions, this walking car concept from the house of Hyundai is an outrageous one which is never heard before. The company is hopeful that this new concept will be a big hit in the event as well as among the car lovers.
3 January 2019
Hyundai’s new flagship 3-row SUV, the Hyundai Palisade, has made its global debut recently at the Los Angeles Auto Show. The flagship 2020 Hyundai Palisade comes with an all-new chassis. The company has claimed that the second and third rows are quite spacious and has a big cargo space as well. The Palisade will be officially launched next year and will be produced in Ulsan, Korea. The SUV comes with LED DRLs, LED headlamps, and LED turn indicators. It also gets turn indicator clad ORVMs. The SUV is powered by an Atkinson-cycle 3.8-litre V6 CVVT, direct-injected engine that delivers around 291 horsepower and produces about 394 Nm of torque. It comes with a host of safety features such as Forward Collision-Avoidance Assist with Pedestrian Detection, Lane Following Assist, Blind Spot Collision Avoidance Assist, Rear Cross Traffic Collision Avoidance Assist, High Beam Assist, Safe Exit Assist, Driver Attention Warning, and Smart Cruis Control with Stop and Go. The Palisade also features a first in industry roof vent diffuser design which can provide a focused, fully diffused, or partially diffused air stream to the rear passengers. The SUV also receives the latest navigation system from Hyundai with Android Auto and Apple CarPlay. It also offers a Qi wireless charging pad to eliminate the need for a charging cord.
5 December 2018
After a number of years of dominance in the SUV segment, Mahindra has been expanding its market to other segments. The Alturas is an SUV from Mahindra launched with the help of Ssangyong. After the launch, the Mahindra Alturas G4 2WD version is now available across multiple dealerships at a retail price of Rs.26.95 lakh (ex-showroom). The price of the top-end model of the SUV is Rs.29.95 lakh (ex-showroom). Last year, Korean transport ministry gave a top crash test rating for the Ssangyong Motors G4 Rexton. The Rexton was given a five star rating for collision safety in the Korean New Car Assessment Program (K-NCAP). The Toyota Fortuner also came away with a 5 star safety rating. The Mahindra Alturas will be equipped with 9 airbags, Brake Assist System, Electronic Stability Program with Active Rollover Protection, Hill Start Assist, Emergency Stop Signal, ABS + EBD, and Traction Control System. The vehicle has been built with high quality steel quad frame structure, front crumple zones, Hill Descent Control (HDC), side impact beams, and ISOFIX mounts for the child seat comes as a standard feature. In the market outside India, the Rexton G4 comes with 9 airbags and close to 81.7% of the car consists of high quality steel. The Mahindra Alturas imports all the parts from South Korea but the car is assembled locally. The Rexton Alturas is sold as a CBU is everywhere in the world but will be sold as a CKD in India. People opting for the Alturas G4 will deal with relationship managers at the store and will be provided access to premium loyalty programme Purple Club+.
30 November 2018
The number of car consumers who prefer automatic transmission over manual transmission is increasing in India. Major automobile firms, such as Tata Motors, Hyundai, and Maruti Suzuki are looking forward to an increase in sales of automated cars. Maruti Suzuki India enjoyed a positive response to its Auto Gear Shift (AGS) facility by crossing Rs.3 lakh retail sales within 5 years from the date of launch. It is targeting to sell more than 2 lakh AGS cars during the current financial year. Currently, Maruti Suzuki India is offering AGS in seven models that include the WagonR, Celerio, Alto K10, Dzire, and IGNIS.
Hyundai Motor India, which is the second biggest vehicle manufacturer in India, saw an increase in automated vehicles from 4% of total sales in 2015 to 9.8% of total sales by June 2018. It sold 42,186 automated vehicles last year which accounts for 8% of the total sales. Tata Motors believes that every 2nd car sold in India, 5 years down the line would be an automated car. The senior marketing director of Maruti Suzuki India stated that the ease of driving and comfort offered by automated cars without compromising on the fuel efficiency are the reasons for wide acceptance among consumers in India.
4 September 2018
Nissan Kicks SUV has been in the spotlight since the time it was launched in Brazil. The car is expected to be introduced in India in January 2019. Ahead of its launch, Kicks has been spotted in India recently.
Once the car is launched in the Indian automobile market, it is expected to compete with Renault Captur and Hyundai Creta. The vehicle will be priced in the range of Rs.11 lakh to Rs.16 lakh, ex-showroom. It is understood that the Indian model of the car will have different specifications from the international model.
The car will have attractive styling and will be more spacious on the inside. Nissan Kicks is expected to improve the sales figures of the auto manufacturer in the country.
The car will be made available in diesel and petrol versions with both automatic and manual transmission systems.
7 August 2018
Porsche, the sports car brand owned by the Volkswagen Group has launched its most expensive car to ever grace the Indian roads. The 911 GT2 RS comes with a price of Rs.3.83 crore (ex-showroom Mumbai) and will boast a 340 kilometers per hour top speed. The car can accelerate from 0 to 100 km/hr in just 2.8 seconds and has already sold out for this year. The GT2-RS delivers 750 Nm of torque and 700 bhp of power and is powered by a 3.8 litre bi-turbo engine. The car weighs only 1,470 kg and has completed the famed Nurburging race track in just 6 minutes and 47.3 seconds. While the company gets more than 65 % of its sales through SUVs, they strongly believe that there is an increasing demand for sports cars in the country. Porsche believes that with vehicles like the new 911 GT2 RS, the company is very well equipped to meet this increasing demand.
13 July 2018
Maruti Suzuki Vitara Brezza has acquired the tag of being the fastest selling car in the SUV segment due to its incredible sales mark of more than 3 lakh. Brezza has sold 3 lakh units in India in just 28 months from which 1 lakh unit was sold in the month of March 2017 within 1 year of its release. Earlier, in March 2016, Maruti made its entry in the compact crossover segment in India with the launch of the new Maruti Suzuki Vitara Brezza. Ever since this car has become a huge success for the company and recently it has set new sales record by selling more than 3 lakh of units from its launch date. As this SUV has acquired this milestone within just 28 months from its launch, it has been tagged as the fastest vehicle to do this in the country. In average, 10,714 units of the Vitara Brezza was sold in India every month since its launch. Moreover, it was always topping the list of the 10 top-selling cars in India ever since its market release. In fact, the top-spec (Z/Z+) variants of this car account for 56% of the total sales of the company.
12 July 2018
Many of the big car manufacturers like Maruti Suzuki and Toyota have seen a significant drop in the sales of hybrid vehicles. The companies have seen a drop of up to 76% in the sales of these cars. The GST Council added a cess of 15% on hybrid vehicles. This is in addition to the 28% GST that is imposed on the vehicles. The tax adding these two comes to 43%, a 15% increase to the previous tax rate. Car manufacturers believe the 15% increase in the tax rate was a little too much for many of the prospective buyers. The GST council has also taken a step to promote electric vehicles by setting the rate at 12% for these cars.
20 June 2018
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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
