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.
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 | Interest Rates Information |
|---|---|
| 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.
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.
Check Here: SBI Car Loan Customer Care
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.
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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
Volkswagen has made an announcement regarding the launch of an extended warranty plan and service package. The revised plan is a 2+3 year package which will be extended to both new and existing customers.
The service package can be used for a year and includes privileges such as engine check-up, painting, wheel alignment, and a pickup and drop of the car.
With regard to the warranty programme, existing customer who is towards the end of their 2-year warranty can have the programme extended for another 3 years.
Apart from the warranty and service package, 1,000 customers also stand a chance to win gift coupons from Volkswagen.
15 June 2018
Hyundai India has announced that it is all set to increase the prices of its cars by 2 percent. The price of the cars will be increased starting from June 2018. This price rise is set to affect all the models that are sold in the Indian market expect the newly released Hyundai Creta. The director of Sales and Marketing of the company conveyed that Hyundai has been trying so far to absorb the increasing costs of raw materials needed to manufacture the vehicle but now faces no option other than raising the cost of the vehicles by a small percentage.
24 May 2018
BMW, the German luxury carmaker is expecting 50% sales in the Indian market to be from the sale of its X Series SUVs. In the first quarter of 2018, BMW reported 11% growth across its car models at 2,377 units sold. The Indian government has increased the customs duty on vehicle parts and accessories from 7.5% to 15%. Likewise, customs duty on imported vehicles has been hiked from 10% to 15%. Due to the hike in customs duty, there will be a hike in BMW car prices as well in the range of 3.5-5% from this month. However, BMW aims to double its growth in FY2018. BMW has 4 models in the X Series with a price range of Rs.34.5 lakh to Rs.1.3 crore - X1, X3, X5, and X6. From the time the new X1 was launched, it has contributed 42% to the company's car sales in the last 2 to 3 years. With the new X3 launched last week and the X4 to be launched next year, BMW is looking at 50% sales through X Series.
26 April 2018
In an effort to stimulate sales in China, Ford Motor Co. has unveiled 5 new car models and by 2025, the company is looking at launching around 50 cars which will either be new or redesigned ones. All the 5 newly-launched car models, unveiled at a Chongqing event will hit the showrooms in China during the later part of 2018. The unveiled models are re-designed hatchback and sedan versions of Focus, Focus ST-Line, and Escort cars. These new passenger vehicle models will fight the Chinese marketplace of crossover SUVs that makes up for around half of the market share. Ford also intends to launch around 15 electric vehicles to boost its sales growth in China by 2025.
12 April 2018
The 2018 Hyundai Accent which was made in India has been recently launched in the Middle East at Bahrain. This 5th generation sub-compact sedan model is known as Hyundai Verna in India. 2018 Hyundai Accent is powered by a 1.4-litre MPi petrol engine that generates 100 PS power and 132.39 Nm torque. The other engine option is a 1.6-litre petrol engine that generates 123 PS and 151 Nm torque. The petrol engines are paired with a 6-speed automatic transmission. In the Middle East, the 2018 Hyundai Accent is available in SE, S, E, and premium grades starting at BD 4,990.
The car has projector headlamps, chrome accented grille, LED DRLs, and a shark fin antenna. It has a 2-toned dashboard, sunroof, rear AC vents, handrest, ventilated seats, and cruise control rear windshield blinds. The safety features include 6 airbags, electronic stability control, rear parking cameras, and ABS with EBD. The 2018 Hyundai Accent is built on a new K2 platform for high-speed stability and concise tuning of suspension parts.
5 April 2018
Maruti's compact sedan, Dzire beat Alto as the best-selling car of February at 20,941 units and 26% growth over the same period in 2017. Alto sales saw 1% growth at 19,760 units. However, Alto is expected to end up as the best-selling car in the country for the 14th year running. The successful sales of Maruti Dzire shows the Indian customers’ preference for large, feature-rich cars more than budget cars. The arrival of an all-new Swift in February was expected to affect Maruti car sales in a major way but there has been no news of it so far.
13 March 2018
The South Korean carmaker, Hyundai is likely to showcase the all-new Santro at the 2018 Auto Expo in February. The car is expected to be launched in mid-2018. It will compete with Tata Tiago, Renault Kwid, and Maruti Suzuki Celerio. The car will likely have a 0.8-litre and 1-litre engine options which will be paired with a 5-speed manual gearbox. With the growing demand for Automatic Transmission in India, Hyundai might offer an AMT option in the new Santro.
30 January 2018
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