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

    We found 2 SBI Car Loan Interest Rates

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    9.25% Floating
    7 Years
    Response Time Within 30 minutes
    What you'll love
    Think about
    Fees & Charges
    Eligibility Criteria
    9.20% Floating
    7 Years
    Response Time Within 30 minutes
    What you'll love
    Think about
    Fees & Charges
    Eligibility Criteria

    SBI Car Loan Interest Rates is Rated as "Excellent!" by 907 Users

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    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.

    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 - 9.60% For Men - 9.65%
    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 9.85/(12 x 100).

    For example: If you take a car loan for Rs. 5,00,000 at an interest rate of 9.85% 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 9.85%. 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.

    News About SBI Car Loan Intrest Rates

    • Skoda Octavia RS, Kodiaq Scout and Sportline Debut at Geneva Motor Show

      Posted on 14th March 2017

      The 87th Geneva Motor Show witnessed the Skoda Octavia RS 245 turning heads. The car made its debut as the most powerful production of the Octavia. The stunning design is matched with 245 PS of power backed by a 2.0 liter TSI petrol engine. The car can churn out 370 Nm of torque. It is fitted with a 7-speed a dual clutch automatic transmission. Drivers can get from 0 kmph to 100 kmph in 6.6 seconds and top out at 250 kmph. The car may never make it to Indian shores, but reports suggest otherwise. Skoda also showcased the Kodiaq Sportline, Kodiaq Scout, Rapid, Rapid Spaceback, Citigo, and the Fabia. The Scout is an SUV designed for off-roading with underbody protection at the front of the car and the rear. The car gets 19-inch alloys and comes in both petrol and diesel options.

    • Honda to Soon Launch Honda City Facelift in Indian Markets

      Posted on 7th February 2016

      As per reports, Honda is expected to launch the new edition of Honda City by February. The new Honda City Facelift was unveiled a few days back in Thailand. There have also been reports that bookings for the upgraded sedan has already begun in some select dealerships across India. Design wise, the car will have a more attractive exterior than the current model. It comes with an altered front bumper with smaller fog lamp, chrome front grilles, and new alloy wheels. On the interior, it has LED illumination for cabin, enhanced audio system, improved Bluetooth connectivity, etc. The brand new sedan is expected to be priced at Rs.8 lakhs for the base variant and Rs.14 lakhs for the higher end diesel variant.


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