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

    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 2018

    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 2018 Table

    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.

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    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:

    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.

    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
      "Nice experience"
      0.5 5.0/5 "Blown Away!"
      State Bank of India has also offered me a car loan. The customer services and response is good and there are no issues in the process. The rate of interest and processing charges is normal and that is the best about the bank. The process is also satisfactory.
      Was this review helpful? 3
      , nagpur
      Reviewed on Sep 11, 2018
    • SBI Car Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      It has been a very good experience i had with this Car Loan. The process in getting this loan just took one day and it has been simple and easy. The loan amount which they had provided has been satisfactory as well as the interest rate with them has been nominal as well. Their customer support also had been responsive during the process.
      Was this review helpful? 1
      , jaipur
      Reviewed on Sep 07, 2018
    • SBI Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      It was a best experience with SBI for car loan, the loan amount was for Rs 2 lacs with nominal interest rate when compared to others. It was a new car which was taken back in 2008. Customer service was good and they followed up on time.
      Was this review helpful? 4
      , kolkata
      Reviewed on Sep 06, 2018
    • SBI Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I've taken a car loan form the SBI. The loan amount was 4.5 Lacs, the process was easy. The rate of interest was really competitive.The pre-closure charges are also pretty low. They can still work on reducing the interest rate and still make their profit.
      Was this review helpful? 4
      , lucknow
      Reviewed on Aug 31, 2018
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken with SBI 2 years back. The loan amount was 4,70,000 and the in the tenure period was 7 years . Their customer sere and responses was sup to the mark. They haves sanctioned the loan with the committed time, and the processing fee was also nominal.
      Was this review helpful? 6
      , new delhi
      Reviewed on Aug 30, 2018
    • SBI Car Loan
      "Best Service"
      0.5 4.5/5 "Excellent!"
      I had a very nice experience with car loan from SBI, the process was smooth and i received my loan amount on time. The loan amount was sufficient and the rate of interest was fine. I am happy with the customer service of SBI and the tenure period is 7 years.
      Was this review helpful? 7
      , bangalore
      Reviewed on Aug 29, 2018
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken a car loan with SBI and my loan experience was good, the loan amount was for Rs 3.5 lacs with nominal interest rate when compared to others. It is a new car and the process was smooth at the time of taking the loan. Customer service was good and the tenure period for this loan is for 7 years.
      Was this review helpful? 4
      , jaipur
      Reviewed on Aug 27, 2018
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      My car loan experience was good with SBI, the loan amount was for Rs 8 lacs with nominal interest rate when compared to other banks. My loan was approved based on the on road price. The tenure period for this loan is for 7 years out of which 2 years is already completed.
      Was this review helpful? 4
      , bangalore
      Reviewed on Aug 21, 2018
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken with SBI 1 year back. The loan amount was 4 lakhs and the Interest rate was satisfactory . The tenure period was 7 years . The customer service and responses was up to the mark. The loan was approved on time and the documentation was quite smooth.
      Was this review helpful? 4
      , chennai
      Reviewed on Aug 18, 2018
    • SBI Car Loan
      "Good"
      0.5 4.0/5 "Great!"
      My car loan was taken with SBI 2 years back.The loan amount was 6 lakhs and the interest rate was satisfactory . He tenure period was 5 years.There is no issues faced with the service here. The customer service and responses was up to the mark. There is no processing fee at all.
      Was this review helpful? 12
      , bangalore
      Reviewed on Aug 14, 2018
    • SBI Car Loan
      "Hassle free"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan from SBI and my loan experience is pretty good. My loan amount is 2.5lakh and interest rate is 8.5% it is nominal in the market. There is no hidden charges. I use to pay 8000 as EMI per month. Processing fee is 2% on loan amount. The process was very quick no challenges faced till date.
      Was this review helpful? 3
      , noida
      Reviewed on Aug 14, 2018
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      My car loan experience was good with SBI, the loan amount was based on my requirement ad the rate of interest was nominal when compared to other banks. Customer service was good and they responded on time. The tenure period was for 5 years but i preclosed in 2 years. There are no additional charges on preclosure.
      Was this review helpful? 2
      , new delhi
      Reviewed on Aug 07, 2018
    • 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 6.60 lakhs with nominal interest rate when compared to other banks. Customer service was good, they responded on time and they collected documents on time. The tenure period for this loan is 5 years.
      Was this review helpful? 6
      , hyderabad
      Reviewed on Jul 31, 2018
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have taken my car loan wit SBI 2years back.. The loan amount was 9 lakhs and the interest rate was satisfactory . The tenure period was 5 years . I had a good experience here and the documentation was also quite easy .The customer service and responses was really amazing . There is no delay in the process and the processing fee was also average .
      Was this review helpful? 7
      , hyderabad
      Reviewed on Jul 30, 2018
    • SBI Car Loan
      "Very nice car loan"
      0.5 5.0/5 "Blown Away!"
      I have taken this car loan with SBI 3 years before. Total tenure of the car loan is totally 5 years. I have applied the loan amount of Rs. 10 lakhs and they have sanctioned the same. I don't remember about the interest rate and processing fee. I will pay the EMI through auto deduction from my account directly. I have received the loan on time.
      Was this review helpful? 5
      , hyderabad
      Reviewed on Jul 29, 2018
    • SBI Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have take car loan from the state bank of India . They have given promising rate of interest with nominal processing fees . They did instant approval for the loan . Am happy with their customer service and response in terms of car loan process. They have the tenure period of 3 years .
      Was this review helpful? 8
      , chennai
      Reviewed on Jul 27, 2018
    • SBI Car Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      It has been a very good experience with this loan but the loan amount which they had provided had not been satisfactory. The interest rate which they had been charging had been nominal when compared with the market rate. Their customer support and the staff responses had been good where there has been a good response which they had been making.
      Was this review helpful? 3
      , sambalpur
      Reviewed on Jul 26, 2018
    • SBI Car Loan
      "Very good"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken with SBI few months back. The loan amount was 7 lakhs and the interest rate was average . The tenure period was 6 years . I had a very smooth experience and the loan amount was sanctioned with in 2 hrs. There is no processing fee here.The customer service and responses was good.
      Was this review helpful? 5
      , new delhi
      Reviewed on Jul 25, 2018
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken car loan form the state bank of India . Its been long time and i have closed the loan . They have given nominal rate of interest which am satisfied with it. There is no processing fees with tenure period of 7 years . They took just 2 days for the approval of the loan . Am satisfied with the my car loan from the sbi.
      Was this review helpful? 2
      , new delhi
      Reviewed on Jul 25, 2018
    • SBI Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The process in getting the loan had been smooth and easy and the loan has been disbursed in one single day. The loan amount which they had provided had been satisfactory and the interest rate has been less when compared with the other banks which are offering. Their customer support also had been very good and they had been responsive as well.
      Was this review helpful? 7
      , hyderabad
      Reviewed on Jul 20, 2018
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