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 2019

    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 Charges
    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.

    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.

    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.

    Perfect Car Loan Deals for you

    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!"
      It has been quite a good experience i had with this car loan and the loan amount which they had provided has been sufficient as well. The interest rate with them was around 9.25% which was nominal when compared with the market rate. The charges which they had made has been nominal as well, and even their customer support has been responsive as well.
      Was this review helpful? 1
      , bhubaneshwar
      Reviewed on Jan 17, 2019
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been taken my car loan with State bank of India, they have given me sufficient loan amount, and i am satisfied with the loan amount , and the rate of interest they have charged me up to 9.45% which is bit high compare to other bank,i have asked for 9 % but its okay, and the processing fee they have charged me was nominal,overall service is good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 17, 2019
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I took my car loan in State Bank of India by last year. The charges are normal. I have spend down payment nearly 1L out of 7L. The branch is near to my residence so will never contact the customer service. The process was immediate and it was completed within 2 days.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 12, 2019
    • SBI Car Loan
      "Super Fast Service"
      0.5 5.0/5 "Blown Away!"
      Within two hours of time, SBI have approved my car loan. The actual on road price of the car is around Rs. 5 lakhs. But I requested the loan amount of Rs. 3.95 lakhs, the process was very instant and easy, the bank gave me the interest rate around 9.85% its low.
      Was this review helpful? 7
      , kanpur
      Reviewed on Jan 05, 2019
    • SBI Car Loan
      "Got the loan on time"
      0.5 4.0/5 "Great!"
      My car loan was purchased from SBI. I bought this loan in January 2018. Dealer has selected the SBI car loan options. I was taken the loan amount of Rs. 6 lakhs. I have been paying the EMI of Rs. 50000. I have selected the tenure period of 4 years. Documentation process was really fine.
      Was this review helpful? 6
      , chennai
      Reviewed on Jan 03, 2019
    • SBI Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      My personal loan experience was good with SBI, the loan amount was based on my requirement and the process was smooth. I am happy with the customer support and their response was good. Rate of interest was nominal and i have taken this car loan for 5 years.
      Was this review helpful? 5
      , bangalore
      Reviewed on Jan 03, 2019
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      It was a good experience with car loan from SBI, they give loans at very nominal interest rate when compared to other banks. Customer service was very good and they followed up on time. Loan amount was sufficient and the tenure period for this loan is 7 years.
      Was this review helpful? 3
      , pune
      Reviewed on Jan 03, 2019
    • SBI Car Loan
      "Good in Service"
      0.5 5.0/5 "Blown Away!"
      I had applied for a car loan with SBI and i am satisfied with the service which received. The interest rates compare to market rate it is very much reasonable. I have also experienced the customer service and i feel like they are pretty much good in customer handling.
      Was this review helpful? 6
      , noida
      Reviewed on Dec 29, 2018
    • SBI Car Loan
      "Good Car loan"
      0.5 5.0/5 "Blown Away!"
      I have got a car loan from State bank of India. The flexibility of the loan services from SBI, i have selected this loan. The processing fee was convenient and the interest rates very less when i compared to other banks. I have done the pre-closure for this loan with no charges. The service from State bank of India is fine.
      Was this review helpful? 4
      , chennai
      Reviewed on Dec 29, 2018
    • SBI Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding car loan with State bank of India from past 1 year, the loan amount they have given me was sufficient, and the rate of interest they have charged me was bit high, and for processing fee they have charged me up to 1200-1300 it is nominal,overall service is good.
      Was this review helpful? 1
      , pune
      Reviewed on Dec 27, 2018
    • SBI Car Loan
      "Very Good loan"
      0.5 5.0/5 "Blown Away!"
      I bought my car loan from State bank of India. 3 years ago, i have got this loan. I pay the EMI amount of Rs.10,800 for the loan amount of Rs. 6.5 lakhs. I have chosen the tenure period of 7 years. The documentation process was quite simple and easy.
      Was this review helpful? 2
      , bangalore
      Reviewed on Dec 24, 2018
    • SBI Car Loan
      "Good service"
      0.5 4.5/5 "Excellent!"
      I have taken car loan through STATE BANK OF INDIA , they offered sufficient loan amount to me . I receive my loan within few days the process was very prompt with this bank . . The tenure period is good and rate of interest it is nominal in the market .
      Was this review helpful? 2
      , chennai
      Reviewed on Dec 22, 2018
    • SBI Car Loan
      "Good in Service"
      0.5 4.0/5 "Great!"
      I was looking for car loan and thats when i went applying with SBI as i have a savings account in SBI. While applying there was not much documentation work and my request was processed on time. When it comes to interest charges, it is pretty much high. Hence the settlement of my loan has been done.
      Was this review helpful? 8
      , bangalore
      Reviewed on Dec 19, 2018
    • SBI Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this loan a long time and the experience with them has been simple and smooth. The loan amount which they had provided has been sufficient and the interest rate with them has been nominal when compared with the market rate. The charges which they had made also has been nominal.
      Was this review helpful? 3
      , new delhi
      Reviewed on Dec 19, 2018
    • SBI Car Loan
      "Best Financial Service"
      0.5 5.0/5 "Blown Away!"
      State bank of India is giving good service for the car loan where they took some week time for the approval and documentation . Am pretty happy with the service where they have explained the terms and conditions . Am making the payment through Ecs mode. Where they have given good rate of interest where they charges nominal processing fees of Rs 750.
      Was this review helpful? 4
      , ahmedabad
      Reviewed on Dec 16, 2018
    • SBI Car Loan
      "Good Financial service"
      0.5 4.5/5 "Excellent!"
      I have taken car loan from the state bank of India . They have give good rate of interest and am happy with it . They took only 1 week for the approval and documentation . There charges some nominal amount for processing fees . Overall am satisfied with my car loan.
      Was this review helpful? 4
      , mumbai
      Reviewed on Dec 12, 2018
    • SBI Car Loan
      "GOOD BANKING"
      0.5 5.0/5 "Blown Away!"
      I have taken the personal loan with the STATE BANK OF INDIA where the process is very quick and very fast process. The loan amount is satisfactory also the rate of interest is 8.75% also there is a pre closer charges applicable and 5 years to repay the loan.
      Was this review helpful? 1
      , chennai
      Reviewed on Dec 12, 2018
    • SBI Car Loan
      "Nice loan from SBI"
      0.5 3.5/5 "Pretty good"
      I have purchased the car loan from SBI. The details given about the car loan was good. I have taken the loan amount of Rs. 2.5 lakhs. They have provided me a interest rate of 9% and there was some processing fee. I have been paying the EMI of Rs. 5700 and I'm making the payment through ECS.
      Was this review helpful? 1
      , mumbai
      Reviewed on Dec 11, 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, it was a new car and the loan amount was for Rs 7.6 lacs with nominal interest rate when compared to others. Customer service was good and the tenure period is 5 years.
      Was this review helpful? 2
      , bangalore
      Reviewed on Dec 11, 2018
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been holding my car loan with state bank of India from past 1 year, the loan amount they have give me was sufficient for me , but there service is not up to the mark, they took long procedure to get loan, the rate of interest they have charged me is less comparing to other bank, and there are no hidden charges .
      Was this review helpful? 2
      , hosur
      Reviewed on Dec 08, 2018
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