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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
      "GOOD SERVICE"
      0.5 5.0/5 "Blown Away!"
      I have applied for the card loan with the STATE BANK OF INDIA where the process is very good and simple to get the loan as well as the loan amount is sufficient from this bank added on that the rate of interest is nominal when compared to the others.
      Was this review helpful? 3
      , bangalore
      Reviewed on Nov 16, 2018
    • SBI Car Loan
      "Good Car loan"
      0.5 5.0/5 "Blown Away!"
      I am not sure about the SBI customer care. I have gone through all the details with the dealer. I have got the loan within 10 days. I have received the car loan of Rs. 4 lakhs and they have provided the interest rate of 8.99% and I'm okay with it. I am paying the EMI of Rs. 14000 per month and i have chosen the tenure period for 3 years.
      Was this review helpful? 1
      , chennai
      Reviewed on Nov 16, 2018
    • SBI Car Loan
      "Average Service"
      0.5 3.0/5 "Satisfactory"
      It has been a good experience i had with them where the loan amount whcih they had given has been sufficient and the loan has been arranged by the car dealer. The interest rate with them has been nominal when compared with the market rate and there has not been any charges which has been made by them.
      Was this review helpful? 4
      , pune
      Reviewed on Nov 14, 2018
    • SBI Car Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      The experience i had with this loan has been good and the loan amount which they had provided has been satisfactory as well. The interest rate with them has been nominal and there has not been any additional charges whcih they had been making as well.
      Was this review helpful? 1
      , pune
      Reviewed on Nov 13, 2018
    • SBI Car Loan
      "Should stick on their commitment"
      0.5 2.5/5 "Just OK"
      I closed SBI car loan, the interest rate is high. What they told and what I got is entirely different. I got 16% of interest for 5 years of car loan. The disbursement process is not good they taken some to disburse the amount to the showroom. I am not happy service from SBI. They should provide proper commitment.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Nov 10, 2018
    • SBI Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been a good experience i had in getting my car loan from State Bank of India. The loan amount which they had provided has been sufficient and there has not been any additional charges and the processing fee has been nominal. The interest rate with them has also been affordable as well.
      Was this review helpful? 2
      , bangalore
      Reviewed on Nov 09, 2018
    • SBI Car Loan
      "Better"
      0.5 3.0/5 "Satisfactory"
      I have purchased Chevrolet car through State Bank of India. It s still ongoing and the total period is 7 years, I have completed 3.5 years. Premium of Rs.8175 will be auto debited. I approached SBI and they processed the loan within 30 days, am fully satisfied with interest rate 8.75%, They have provided 75% funding to buy a car.
      Was this review helpful? 6
      , new delhi
      Reviewed on Nov 03, 2018
    • SBI Car Loan
      "Need improvement on process"
      0.5 3.0/5 "Satisfactory"
      I took car from TATA company, they have suggested SBI bank for the loan. The loan process became delay, they took almost ten days to approve my loan. They need to work on the process however the documentation process was easy without any hassles.
      Was this review helpful? 4
      , lucknow
      Reviewed on Nov 01, 2018
    • SBI Car Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      It has been a good experience i had in getting my Car loan with them and the process has been simple. The loan amount whcih they had provided has been sufficient and the interest rate with them has been nominal when compared with the market rates.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Oct 31, 2018
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My car loan is with State Bank of India. The process to get the loan is fine and there are no hassles in the process. The documents was a on time process. The rate of interest and processing charges is normal. Overall it has been a good experience.
      Was this review helpful? 2
      , bangalore
      Reviewed on Oct 27, 2018
    • SBI Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It had been a good experience i had with this car loan and the loan amount which they had provided me has been sufficient and satisfactory. The interest rate with them has been nominal when compared with the market rate and there has not been any sort additional charges.
      Was this review helpful? 1
      , chennai
      Reviewed on Oct 25, 2018
    • SBI Car Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      I had taken this loan almost three to four months back and the experience in getting this loan has been good. The loan amount has been satisfactory and the interest rate also had been nominal when compared with the market rate. There has not been any hassle faced with the banking services of them so far.
      Was this review helpful? 4
      , ahmedabad
      Reviewed on Oct 23, 2018
    • SBI Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The process in getting this loan had been good and the loan amount has also been good as well. The interest rate also had been good with them when compared with the market rate. There has not been any charges which they had made during the loan process.
      Was this review helpful? 1
      , chandigarh
      Reviewed on Oct 19, 2018
    • SBI Car Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I am using the car loan from last 1year with the STATE BANK OF INDIA. The process is good also it is quick process added on that the service is good also the loan amount is good. The rate of interest is lesser comparatively, loan has to be paid but there are no pre closer charges here.
      Was this review helpful? 4
      , bangalore
      Reviewed on Oct 18, 2018
    • SBI Car Loan
      "BEST BANKING FOR CAR LOAN"
      0.5 4.5/5 "Excellent!"
      I am using the car loan from STATE BANK OF INDIA last 4 and above years. The process is quick to get the loan also the loan amount is sufficient and the rate of interest is reasonable with this bank. The duration for repaying this car loan is for 5 years.
      Was this review helpful? 6
      , kolkata
      Reviewed on Oct 15, 2018
    • SBI Car Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have applied for the car loan with the STATE BANK OF INDIA where i have got the sufficient amount of loan sanctioned. the process of getting the loan is very quick and easy method. It is a good loan to use added on that it is a user friendly.
      Was this review helpful? 2
      , chennai
      Reviewed on Oct 15, 2018
    • SBI Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with SBI and my experience was good, the rate of interest was nominal when compared to other banks. Customer service was good and they followed up on time. The loan amount was for Rs 5.5 lakhs and this was taken for a tenure period of 5 years.
      Was this review helpful? 9
      , new delhi
      Reviewed on Oct 11, 2018
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      My experience was good with SBI for car loan, the loan amount was for Rs 3.5 lacs with nominal interest rate when compared to others. It was a new car and loan was approved based on the on road price. The tenure period for this loan was for 3 years.
      Was this review helpful? 3
      , hyderabad
      Reviewed on Oct 11, 2018
    • SBI Car Loan
      "Average experience"
      0.5 3.0/5 "Satisfactory"
      My experience with SBI for car loan was good, the rate of interest was little high when compared to other banks. It was a new car and the loan amount was for Rs 4.5 lacs. They charged Rs 3000 as penalty without my notice for RC issue. The tenure period for this loan is 7 years.
      Was this review helpful? 3
      , visakhapatnam
      Reviewed on Oct 11, 2018
    • SBI Car Loan
      "Good Financial service "
      0.5 4.0/5 "Great!"
      I have taken car loan for the state bank of India . They have provided good rate of interest based on the market price where there is nominal processing fee . Making the payment through Ecs process. They have instantly approved Overall am satisfied with the service and response .
      Was this review helpful? 4
      , ahmedabad
      Reviewed on Oct 09, 2018
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