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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
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      Got the car loan from the State bank around 6 years ago. They have disbursed the loan amount within the time frame. The customer support service and the response is good from the State bank of India,. They required loan amount has been given . The rate of interest and the charges are average here.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 22, 2018
    • SBI Car Loan
      "Very good service with no charges! "
      0.5 5.0/5 "Blown Away!"
      I took a car loan from SBI, believe me I got the loan amount with in a day. It must be because of the job profile. I got the loan for 7 Lakhs cleared the loan with in 2 Months. There were no part payment charges , Pre-closure charges and No processing charges. SBI is the best for car loans and their interest rate is also competitive.
      Was this review helpful? 0
      , chennai
      Reviewed on May 21, 2018
    • SBI Car Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I took a car loan from the SBI, all the aplication and documentation was done at the branch. I got the loan credited to my account with in a span of seven day. The whole process was smooth and hassle free. I never had any issues with their services.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 20, 2018
    • SBI Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with SBI and my loan experience was good, the loan amount was for Rs 4 lakhs with nominal interest rate when compared to other banks. The process was quick and i received my loan amount on time. Customer service was good and the tenure for this loan is 5 years.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 18, 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 less than Rs 3 lakhs with nominal interest rate when compared to all other banks. There are no charges on foreclosure and part payment options are available. Customer service was good and the tenure period for this loan is 5 years.
      Was this review helpful? 0
      , indore
      Reviewed on May 16, 2018
    • SBI Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with SBI and my loan experience was good, the loan amount was based on my requirements and the rate of interest was nominal when compared to other banks. My loan was approved based on the ex-showroom price. Customer service was good and the tenure period for this loan is 5 years.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 15, 2018
    • SBI Car Loan
      "Good service"
      0.5 3.5/5 "Pretty good"
      I have taken a car loan with SBI and my loan experience was good, the loan amount was more than 5 lakhs with nominal interest rate when compared to all other banks. My car loan was approved on the on-road price. They charge 3.9% of the principal amount for preclosure and the customer service was good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 14, 2018
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      It was a good experience banking with them so far, i can say they are not up to the mark where all the services which they have been providing is average. During the process of taking this loan they have collected the documents at the door steps which was convenient.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 13, 2018
    • SBI Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using the services of them for almost two years, their services has been awesome. The whole process was really good. It was completely smooth process, as the process and the loan sanctioning time was quite simple. Overall i had a great experience with them.
      Was this review helpful? 0
      , noida
      Reviewed on May 11, 2018
    • SBI Car Loan
      "GOOD SERVICE"
      0.5 4.5/5 "Excellent!"
      I got car loan from state bank of India , their rate of interest is promising one and its low when compared to other bank . And their customer service was average over the telephonic conversation.but for documentation and approval their customer service is good. I normally Pay through ECS and there are no charges for any of the transactions.
      Was this review helpful? 0
      , faridabad
      Reviewed on May 05, 2018
    • SBI Car Loan
      "BEST SERVICE"
      0.5 4.0/5 "Great!"
      Using state bank of India for car loan , regarding the documentation and approval they made it so easy to avail and got approved. There is minimum rate of interest for car loan when comparing to other bank which is available in the market. Their customer service and response is good.
      Was this review helpful? 0
      , gurgaon
      Reviewed on May 04, 2018
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      My car loan experience was good with SBI, the process was quick and i received my loan amount on time. I have taken loan for Rs 16 lakhs with normal interest rate. My loan was approved based on the on-road price. The tenure period of this loan is 6 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 03, 2018
    • SBI Car Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      Actually i have taken a car loan from SBI BANK it was a quite easy one because i have not yet faced any difficulties in doing documentation at the beginning.The payment that i pay for my car loan is through my account as auto-pay.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 02, 2018
    • SBI Car Loan
      "Very good"
      0.5 3.5/5 "Pretty good"
      I have my car loan with SBI 2,5 years back. The loan amount was 5 lakhs and the interest rate was 8,75% which is average in the market .The tenure period a s5 years . The process was very good and the documentation was not lengthy . They have sanctioned the loan with the committed time with out any delay.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 28, 2018
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      My car loan experience was good with SBI, the process was quick and i received my loan amount on time. My loan was approved based on the on-road price. The tenure period of this loan is 7 years. Customer service was good and they collected documents on time. The rate of interest was nominal when compared to other banks.
      Was this review helpful? 0
      , pune
      Reviewed on Apr 24, 2018
    • SBI Car Loan
      "Car loan from SBI"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan from SBI and the approved loan amount was 5 lakhs. The rate of interest was 9.3%. The tenure was for 5 years. The monthly EMI comes around 11000. It was a fast approval from SBI. The customer service and response was good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 23, 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 4 lakhs with rate of interest of 9.1% which is nominal rate when compared to other banks. I pay an EMI of Rs 8229 and my loan was approved based on the on-road price. The tenure of this loan is 5 years and there are no charges on preclosure of the loan.
      Was this review helpful? 0
      , kolkata
      Reviewed on Apr 09, 2018
    • SBI Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      My car loan experience with SBI was good, the process was smooth and i received my loan amount within the given time. The loan amount was for Rs 5.05 lakhs with nominal interest rate. My loan amount was based on the on-road price. Customer service was fine and the tenure of this loan is 7 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 31, 2018
    • SBI Car Loan
      "Car loan emi late charges"
      0.5 1.0/5 "Really Bad"
      SBI is the worst bank i have ever seen.They can't even do one emi deduction properly. Eventhough i have amount in my non sbi account they won't deduct the amount on time later they will charge late payment fee. SBI is the worst bank with worst service.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 26, 2018
    • SBI Car Loan
      "Excellent service"
      0.5 4.0/5 "Great!"
      Around 3 years ago, I have got the car loan from the STATE BANK OF INDIA. The customer support service is good with the SBI. The rate of interest and the charges were quite low with the STATE BANK OF INDIA car loan services when compared with other banks.
      Was this review helpful? 0
      , allahabad
      Reviewed on Mar 26, 2018
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