If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
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  • SBI Car Loan Interest Rates is Rated as "Excellent!" by 1151 Users
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    SBI Car Loan Interest Rates

    Overview About SBI Car Loan

    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.


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    SBI Car Loan Interest Rates 2017

    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).

    SBI Car Loan Interest Rates 2017 Table

    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.

    How to calculate my SBI Car Loan Interest Rate

    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.

    The first three months the projection will be as follows:

    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

    The following projection shows the total yearly EMI and repayment schedule for the loan term of 3 years, beginning from October 2015:

    Year Principal Interest Amount Total Payment 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.

    Factors affecting SBI Car Loan Interest Rates

    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.

    • Reliable Guarantor or Co-Obligor - Having a reliable guarantor or co-obligor with substantial income and credit back-up can pave way for a better car loan decision on behalf of the bank. The spouse, parents, siblings or friends and relatives can act as a third-party guarantee on the car loan. This also enhances your opportunity of negotiating a lower rate of interest on the loan since the risk involved in lending the money is minimized.
    • Income - SBI analyzes an applicant’s debt-to-income ratio in order to evaluate their creditworthiness. If you have a well-balanced income outflow compared to your earnings, you are eligible for a car loan approval. In such a situation, you can negotiate with the bank for a lower rate of interest.
    • Loan Tenure - If the tenure you have chosen for your car loan is longer, it indicates higher risk of default payments to the bank. To negate this risk the bank might increase the interest rate applicable on the loan. By going for a lower loan tenure, the bank will be assured of quicker repayment so you can expect a lower interest rate.
    • Loan margin- The percentage of loan margin or down payment made by the prospective borrower also has substantial influence on his/her car loan interest rate. This is inversely proportional because the bigger the down payment the lower is the interest rate applicable on the car loan.
    • Existing Customers - Existing customers of SBI have a higher chance of getting their car loan applications approved at a lower rate of interest. Those who have already availed a home loan from SBI can quickly and easily avail a car loan under SBI car loan scheme called SBI Loyalty Car Loan Scheme. This also improves the chances for getting a lower interest rate on your car loan.
    • CIBIL Score - CIBIL score of an applicant is evaluated by SBI to better understand his/her repayment capacity. Only if an individual has a good credit score will he/she get a car loan approval and in this case, the bank will lower the rate of interest applicable on the loan that it sanctions to the customer.

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    How CIBIL Score Affects Your SBI Car Loan Interest Rates

    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.

    Key Points to Note About SBI Car Loan Interest Rates

    • SBI Car Loan Scheme offers maximum loan quantum of 85% of the ex-showroom price
    • Minimum annual income requirement to avail the loan is Rs.3,00,000.
    • Interest on car loan is calculated based on monthly reducing balance.
    • The Bank transfers the car loan value directly to the concerned dealer’s account by way of RTGS/NEFT facility or, if the account is maintained in SBI the amount is credited through CBS system.
    • Floating rate of interest is charged on the car loan on a daily reducing balance at monthly rest. This rate of interest might be revised from time to time if there are any changes in Base Rate or when the Bank extends the repayment period or reduces/increases the EMI as per its discretion.

    Top Picks for SBI Car Loan Interest Rate

    Car Loan Reviews

    • SBI Car Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      I have taken Car loan with State bank of India.The loan amount is six lakhs.The rate of interest is 9% nominal as compared to others.The EMI amount is 10,000 paid through an ECS.The tenure is seven years.The net banking service is good and convenient to use.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 09, 2018
    • SBI Car Loan
      "Best"
      0.5 4.0/5 "Great!"
      I am having the car loan with the State bank of India. Rate of interest was around 12% and the service was good one for me. I got the loan amount within fifteen days of time and I have got the commercial vehicle through an easy way where as everything went through a different channel.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 09, 2018
    • SBI Car Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan with SBI and it was a good loan experience, the loan amount was for Rs 4 lakhs with the rate of interest of 11% which is nominal when compared to other banks. Customer service was very good and they provided door step service to collect the documents. The process was very smooth, the loan amount was disbursed within 10 days and the tenure of the loan is 5 years.
      Was this review helpful? 9
      , new delhi
      Reviewed on Dec 26, 2017
    • SBI Car Loan
      "Good Loan"
      0.5 5.0/5 "Blown Away!"
      I got this Loan with 1 day and the overall experience with it has been extremely good. The rate of Interest in this Loan is quite good. The process for this was extremely hassle free. The repayment option of them was quite good and didn't require any manual intervention.
      Was this review helpful? 5
      , hyderabad
      Reviewed on Dec 21, 2017
    • SBI Car Loan
      "Good One"
      0.5 5.0/5 "Blown Away!"
      The Customer service was good from the bank STATE BANK OF INDIA . The bank gave me a Full approval on amount i asked for .the total amount got Disbursed in a hour on time .The bank gave me a Rate of interest of11 to 12% around . The processing fee was there of 3K . Bank gave me Pre closure option there on the card .
      Was this review helpful? 4
      , jaipur
      Reviewed on Dec 20, 2017
    • SBI Car Loan
      "Best banking"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with State bank of India.The loan amount is 4.2 lakhs.Rate of interest is low as compared to others banks.I have a processing fees 1% charges from the principle.The tenure is for 7 years.They have processed the application within 20 days.
      Was this review helpful? 1
      , secunderabad
      Reviewed on Dec 16, 2017
    • SBI Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have applied for a car loan with State bank of India.The loan amount is three lakhs,rate of interest is nominal as compered to others.The tenure is for seven years.The monthly EMI is 6000 I had to submit documents to process the request.The loan request processed within 7 days.
      Was this review helpful? 6
      , kochi
      Reviewed on Dec 13, 2017
    • SBI Car Loan
      "Average service"
      0.5 1.0/5 "Really Bad"
      I have taken a Car Loan with State Bank of India.The loan amount is 5 lakhs,tenure is for 5 years.I planned to make a part payments to outstanding amount however its not possible to reduce the EMI whereas they will reduce the tenure,i am not satisfied at all with the service.The customer service is not up to the mark.
      Was this review helpful? 4
      , hyderabad
      Reviewed on Dec 13, 2017
    • SBI Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      The car loan service was good with the State bank of India and I got the car loan around 3 years ago. The customer support is good with the state bank of India. I have got the car loan up to 75% which was helpful, the rate of interest is low with the State bank of India , when compared with others.
      Was this review helpful? 2
      , bangalore
      Reviewed on Dec 12, 2017
    • SBI Car Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      I have applied for a car loan with State Bank of India.the loan amount is 4 lakhs,rate of interest is 9.65% nominal as compared to others.The tenure is for one year.I have deducted processing fees of Rs 6000.I have submitted documents,they have processed the loan within 2 weeks.EMI amount is debited from my salary account.
      Was this review helpful? 2
      , ernakulam
      Reviewed on Dec 11, 2017
    • SBI Car Loan
      "Better service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan from SBI and it was overall a good loan experience with SBI. The loan amount was for Rs 5 lakhs with the rate of interest of 9.70% which is proper rate. The process was quite fast and my loan amount was approved within the given time. Customer service was good and they responded on time. There are no charges on foreclosure and part payment. It was overall a good service from SBI.
      Was this review helpful? 7
      , gurgaon
      Reviewed on Dec 07, 2017
    • SBI Car Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      My car loan experience was good with SBI, the loan amount was for Rs 5 lakhs with the low rate of interest when compared to other banks. The process was quite fast and my loan amount was approved within one day. Customer service was good and they responded on time. Overall it was a good service from SBI.
      Was this review helpful? 1
      , pune
      Reviewed on Dec 07, 2017
    • SBI Car Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      I have taken a car loan with State Bank of India.The loan amount is five lakhs.Rate of interest is 9% nominal as compared to other banks.They had processed the loan within 15 days but it was too long documentation process.The EMI is paid through an ECS.
      Was this review helpful? 3
      , bhubaneshwar
      Reviewed on Dec 07, 2017
    • SBI Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      My car loan experience was good with SBI, the loan amount was for Rs 6 lakhs with the rate of interest which is nominal when compared to other private banks. The process was very smooth, it took 3 days for the loan amount to get approved. Customer service was good, they provided door step service to collect the documents and there was a good coordination. My loan amount was approved based on Ex-showroom price and there is no charges on foreclosure and part payment.
      Was this review helpful? 4
      , mumbai
      Reviewed on Dec 06, 2017
    • SBI Car Loan
      "Recommedable"
      0.5 5.0/5 "Blown Away!"
      I got my car loan from State bank of India. The approved loan amount was 3 lakhs. The monthly EMI is 8000 for a tenure of 5 years. But within 9 to 10 months i have closed the car loan with the full amount. The pre closure charges was 1700. Its recommendable to others.
      Was this review helpful? 3
      , new delhi
      Reviewed on Dec 06, 2017
    • SBI Car Loan
      "Very good"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken 2 years back . The loan amount was 5 lakhs and the interest rate was 9-10% which was avergae in the market .the loan process was very easy here and they have sanctioned the loan with in a day of time.Here no processing fee here so My overall experience was very good and I would like to recommend to others.
      Was this review helpful? 5
      , bangalore
      Reviewed on Dec 05, 2017
    • SBI Car Loan
      "Very good"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken 2 years back . The loan amount was 5 lakhs and the interest rate was 9-10% which was avergae in the market .the loan process was very easy here and they have sanctioned the loan with in a day of time.Here no processing fee here so My overall experience was very good and I would like to recommend to others.
      Was this review helpful? 2
      , bangalore
      Reviewed on Dec 05, 2017
    • SBI Car Loan
      "Better"
      0.5 4.0/5 "Great!"
      I have closed the car loan with the State bank of India and the rate of interest was lesser one. They have disbursed the loan amount within a week of time. Everything is fine one with the State bank of India and am really happy with them.
      Was this review helpful? 2
      , ghaziabad
      Reviewed on Dec 04, 2017
    • SBI Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      My car loan is running with SBI currently, they gave me 8.95% for new car loan. I purchased RENAULT brand car worth Rs. 4 .45 lakhs, I took the loan amount of Rs. 3 lakh, remaining I paid as a down payment. They gave me part payment, foreclosure, balance transfer option.
      Was this review helpful? 1
      , faridabad
      Reviewed on Dec 04, 2017
    • SBI Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I am very much happy about the service of sbi car loan service as I already have my salary account with sbi the documents part was very easy and simple also there was a concession in the interest rate they quoted me it was a excellent service from sbi car loan service.
      Was this review helpful? 3
      , pune
      Reviewed on Dec 01, 2017
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