Sit back. Initializing magnetic field for maximum savings on car loan
State Bank of India offers car loans to its customers with interest rates ranging between 9.00% and 9.70% and tenure of up to 7 years.
SBI has waived off processing fees on car loans for the upcoming festival season and is offering lowest car loan interest rates starting @ 8.70%(Updated on 20th Aug’19)
Key Features of SBI Car Loan
Competitive EMI and interest rates
Repayment tenure of 7 years
Provides financing on the On-Road price
Interest is computed based on Daily Reducing Balance
NIL for most of the plans except for the SBI Certified Pre-Owned Scheme where the processing fee will be
If loan amount is up to Rs.6 lakh – Rs.1,000 + GST
If loan amount is more than Rs.6 lakh – Rs.1,500 + GST
Vehicle search charges per search
Rs.50
Pre-payment penalty
If pre-payment is done within 36 months of loan disbursement – 1% + GST
Foreclosure charges
3% + GST
Financing
Up to 90% of the car’s ‘On-Road Price’
SBI Car Loan Eligibility
To be eligible for an SBI New or Used Car Loan, applicants must adhere to the below-mentioned car loan eligibility criteria:
Applicant/individual must be aged between 21 years and 65 years.
The applicant must be either a Central/State Government employee, a professional or self-employed individual, or an individual who is engaged in agricultural and allied activities.
SBI offers high-value car loans to its customers with the interest rates offered for new and used car loans ranging between 9.00% and 9.70%. The interest rate that you are eligible for will be dependent on various factors, some of which have been mentioned below:
Income-to-Debt Ratio – This is one of the primary factors that lenders take into consideration while determining the rate of interest. It basically is an indicator of the amount of money you owe to different entities. It is always recommended to have a low income-to-debt ratio as it denotes your capacity to make EMI payments on a monthly basis, without any delays.
Market Fluctuations - Interest rates tend to change along with the performance of the market. Inflation also plays a major part in determining the interest rates. If the inflation rate goes up, then rates might increase and if the inflation rate goes down, then car loan interest rates might decrease. Other market conditions might also affect interest rates offered by the lender from time to time. Hence, customers should be completely aware of the prevailing market conditions when they opt for a car loan.
Vehicle’s Age – When you borrow a car loan, the vehicle being financed basically acts as a collateral for the entire tenure of the loan. In case you default on the payment of the EMI, the bank can hold onto your vehicle, in order to balance out the outstanding dues. This is the reason why lenders and banks take into consideration the model and age of the vehicle while determining the rate of interest.
Applicant’s income and occupation – In addition to the credit score of the applicant, his/her income and occupation type are also taken into consideration while determining the rate of interest. Banks typically prefer applicants that have a steady source of income as it indicates their capacity to make repayments without defaults.
Repayment tenure: The repayment tenure that is the time given to the applicant to repay their loan amount will also determine the interest rate levied on their loan amount. Longer the repayment tenure, higher will be the interest rate charged on the loan amount.
Relationship with your bank: The applicant’s relationship with the bank will also determine the rate of interest levied on the bank. It is always recommended that the applicant avails a car loan from the bank where he/she holds a bank account. The bank finds it easier to provide loan to a person who has been a customer of the bank for a very long time. Hence, there is a very good chance that the applicant will get a car loan at a lower interest rate.
How to Increase Your Eligibility for SBI Car Loan
Some of the ways through which you can increase your eligibility for SBI Car Loan are given below:
Have a good credit score: It is important to maintain a good credit score in order to improve your eligibility for SBI Car Loan. It I always recommended that you maintain a credit score of 750 and above as it gives the lender the impression that you will be able to repay the loan on time.
Shorter tenure: It is always recommended that you go for a shorter tenure while availing a car loan. Shorter tenure also means that a lower interest rate will be levied on the loan amount. The chances of your loan getting approved is higher if you go for a shorter repayment tenure as it means that you will have to pay back the loan amount quicker.
Apply for a lower loan amount: It is easier for a bank to approve your loan if your loan amount is low. This means that not only will a lower rate of interest be charged on the loan amount but since the loan amount is low, the bank finds it comfortable allowing you to avail the car loan.
Maintain a low debt-to-income ratio: The bank checks debt to income ratio before allowing to avail a car loan. If there is a significant balance between your income and your expenses, then the chances of you availing a car loan at a lower interest rate increase.
Car Loan Schemes Provided by SBI
The list of car loan schemes provided by SBI is given below:
SBI New Car Loan Scheme: This scheme is suitable for those who wish to purchase a new car for themselves. The repayment tenure is up to 84 months and the applicant is also offered an optional SBI Life Insurance Cover.
Certified Pre-owed Car Loan Scheme: This scheme is for those who wish to purchase a pre-owned car for themselves. The minimum loan that one can avail is Rs.3 lakh and the maximum loan amount being Rs.10 lakh. The repayment tenure can be either 5 years, or 8 years minus the age of the vehicle.
SBI Loyalty Car Loan Scheme: Customers who have availed a home loan from SBI have the option of availing this scheme and purchase a car of their choice. The repayment tenure under this scheme is 7 years, and the minimum income criteria the applicant will have to fulfil is Rs.2 lakh.
SBI Assured Car Loan Scheme: If a customer has opened a fixed deposit account in a branch of SBI, then he/she can avail this car loan scheme. The repayment tenure ranged between 3 years and 7 years depending on the loan amount. The margin under this scheme is 100% of the fixed deposit or the on-road price of the vehicle. The minimum loan amount one can avail is Rs.2 lakh.
SBI Car Loan Lite Scheme: Businessmen, agriculturists, and self-employed people under ‘Tatkal Tractor Scheme’ who are engaged in business which provides them income but have no proof to show for the same can apply for this scheme. The maximum loan amount that one can avail under this scheme is Rs.4 lakh, and the maximum repayment tenure is 5 years.
Before you avail a car loan from SBI, you may want to know how much amount you will be paying towards the loan each month. This is simply known as EMIs or equated monthly instalments and it offers an easy way to repay your car loan. By calculating the EMI, you will be able to budget your monthly expenses better.
You can calculate the EMI for your car loan by using the below-given formula:
E = P*r*[(1+r) ^n/((1+r) ^n-1)]
In the above formula, E denotes the EMI, P the principal amount, r the interest rate and n the number of years or tenure of the loan.
You can also calculate the EMI by using the EMI Calculator tool wherein you just need to enter the loan amount, interest rate, repayment tenure, processing fee, etc. The tool will calculate the EMI and display it to you.
SBI Car Loan EMI Calculator
Comparison for Car Loan Interest Rates of Top Banks with Lowest EMI for 7 Years
Name of the Bank
Interest Rate (p.a.)
Lowest EMI per lakh for 7 years
State Bank of India
9.00% and 9.70%
Rs.1,609
HDFC Bank
10.35% to 11.10%
Rs.1,642
Axis Bank
9.25% onwards
Rs.1,622
ICICI Bank
9.30% - 12.85%
Rs.1,624
YES Bank
9.75% onwards
Rs.1,647
Canara Bank
8.80% - 9.45%
Rs.1,599
Punjab National Bank
8.90% - 9.35%
Rs.1,604
Central Bank of India
7.05%
Rs.1,512
How to apply for SBI Car Loan
There are two ways through which you can apply for an SBI Car Loan online:
Through BankBazaar.com: You can visit the BankBazaar’s official website and follow the process given below:
Visit the BankBazaar’s official website.
Click on the ‘Loans’ tab, and under it click on ‘Car Loan’s.
You will be directed to a separate page where you will be shown the list of car loans offered by various banks including SBI.
You can click on ‘Explore’ to know more in detail regarding the features and benefits of the car loan scheme.
Once you are sure that the car loan scheme offered by SBI is suitable for you, you can click on ‘Apply Now’.
Applying by visiting the official website of the bank: You can visit the official website of SBI and apply for a car loan of your choice. You will have to upload the necessary documents and once the bank verifies it and is satisfied that all the documents submitted by you is correct, the loan amount will be disbursed to your bank account instantly.
Documents Required for SBI Car Loan
The applicant must submit the below-mentioned documents alongside the completed application form:
Salaried Individuals:
Bank account statement for the preceding 6 months
2 passport size photos
Proof of address
Identity proof
Proof of income: Latest pay slips, Form 16
Income Tax Returns or Form 16 for the preceding 2 years
Non-Salaried/Businessmen/Professionals:
Bank account statement for the preceding 6 months
2 passport size photos
Proof of address
Identity proof
Proof of income: Income Tax Returns for the preceding 2 years
Form 16 for the preceding 2 years
Audited Balance Sheet
P&L statement for preceding 2 years
Sales Tax Certificate
Partnership Copy
Individuals Engaged in Agricultural and Allied Activities:
Bank account statement for the preceding 6 months
2 passport size photos
Proof of identity
Proof of address
Direct agricultural activity
Allied agricultural activity (poultry, dairy, plantation, horticulture): Evidential proof of the activities running must be provided
FAQs
What are the different makes of vehicles financed by SBI?
SBI finances all makes of new and used cars. The used car being financed, however, must not exceed 5 years in age. The applicant can choose any make or model for financing.
What are the factors based on which the EMI is calculated?
The car loan EMI is computed considering factors such as loan tenure chosen by the applicant. The EMI will be higher if a shorter tenure is chosen as compared to a long tenure.
What is the security that needs to be furnished with respect to SBI Car Loan?
A certain charge on the financed vehicle is submitted to the Local Transport Authorities. Your spouse will have to be the guarantor in case his/her income has also been considered for determining the loan amount. Other securities may be mandated, varying from one applicant to another.
Can my spouse be a co-borrower?
Yes. Your spouse can join in on the car loan as a co-borrower. In that case, his/her income will be included.
What are the elements included in the ‘On-Road Price’ of the vehicle?
The following elements are included in the ‘On-Road Price’ of the financed vehicle:
SBI Yono provides great offers on the Hyundai Grand i10 Nios
Exclusive offers have been unveiled by State Bank of India (SBI) on vehicles that have been newly launched. The Hyundai Grand i10 Nios, which was launched earlier last week, comes with several benefits that have been offered by SBI.
According to SBI, the first 100 customers who book the car via the SBI Yono application will be eligible for an extended warranty of 4 years. Apart from the extended warranty, customers who have booked the car on the YONO app will also be eligible for 100% financing, in-principle loan sanction, and a zero-processing fee. Individuals can download the app, login and book the car under the Shop section. The petrol and diesel variants of the car start from Rs.4,99,990 and go up to Rs.7,99,450, respectively. The car comes with 8 different colour variants, variable basic warranty, and automatic diesel and petrol variants.
29 August 2019
Facelifted Hyundai Elantra to be launched in India
South Korean automaker Hyundai is all set to launch the facelifted Elantra in India. The car was first unveiled back in August 2018. The car has also been spotted testing in India. The expected date of launch of the car is mid-September this year.
Reports suggest that the facelifted model will offer both the engine options which are offered in the current outgoing car. The 2.0-litre 4-cylinder petrol engine can churn out 152 hp of max power and 192 Nm of peak torque. However, it will be updated to meet the BS-VI emission norms. The 1.6-litre diesel engine on the other hand which can churn out about 128 hp of max power is expected to continue in its present form till the BS-VI norms kick in. Both the manual and automatic, 6-speed gearbox options will be offered for the car. The facelifted version gets a major cosmetic update. The changes include the signature cascading grill, a toned and muscular bonnet, new headlamp cluster with LED DRLs, and redesigned wheels. The rear end of the car also receives an update wherein the bumpers are reprofiled with dedicated mounts for the reverse gear lights and rear fog lamps. The tapering tail-lamp is also being further extended to the boot of the car. The interior also gets fresh updates including an 8.0-inch touchscreen infotainment system, multi-zoned climate control, tyre pressure monitoring system, and so on.
27 August 2019
SBI Waives Car Loan Processing Fee
Amid a downturn in the auto market, State Bank of India (SBI) announced on Tuesday, 20th August that it was waiving processing fees on car loans during the festival season. Additionally, the bank is offering loans starting at 8.70% with no escalations in interest.
This announcement follows the bank’s extension of the loan repayment period for stressed automobile dealers to help them due to inventory build-ups. Thanks to the extension, dealers can pay off their dues in 75 days instead of the earlier 60 days.
Other Public Sector Banks (PSBs) are likely to follow suit in an effort to make credit more accessible to customers. Officials from 3 other PSBs stated they would respond to the SBI move to benefit auto buyers during the upcoming festival season.
The auto sector has seen an unprecedented downturn, with auto sales falling to a 20-year low.
22 August 2019
Citroen Cars to be all electric or hybrid by 2025
French automaker Citroen is setting up to get a completely updated line up of vehicles with all electric vehicles or hybrid vehicles. The French auto giant is expected to set its feet on the Indian shores by next year.
After the number of all electric vehicles and plug-in hybrid vehicles across the world crossed the mark of 3 million towards the end of 2017, more and more automakers are getting themselves into the EV market. By the end of 2018, the count went up to 5 million and is expected to hit as high as 13 million by the end of 2020. Most automakers who have stepped into the electric vehicle market with a pre-defined electric path. However, Citroen is yet to roll out its strategy in terms of the electrification.
24 July 2019
Next generation Skoda Octavia to launch in India in 2020
Skoda Octavia has been around for a long time in the country. The car was first introduced in the country in 2013 and last received a complete makeover in the year 2017. It is expected that the next generation Skoda Octavia will be revealed at the end of this year. Indian buyers need not wait long to get their hands on the new generation Octavia as the company has already given a confirmation the vehicle will launch before the end of 2020. It is expected the Indian launch will be a few weeks after the launch in the European markets. It is expected that the latest variant of the Skoda Octavia will be taking design inspiration similar to that used in the Skoda Scala and the Kamiq sold in other markets. The new generation Skoda Octavia will be equipped with LED lights. The higher variants of the car are expected to make use of the same LED headlight that was used in the Skoda Superb. The car will not be getting the Skoda logo and will be getting the brand name mentioned in the back. This is like the way the company branded the Scala and the Kamiq. The new 2020 variant of the Octavia will be going up against the likes of Hyundai Elantra and Honda Civic in the Indian market.
19 July 2019
Tata Motors plans on invading entry hatchback market
Following the success of the Tata Nexon and the Tata Tiago, Tata Motors is now planning on attaining even greater volumes by entering the entry hatchback market. The entry hatchback segment sits just below the Tiago, and though many argue that the Nano and the Indica have cemented Tata’s presence in the segment, that is not actually true. The CEO of Tata Motors, Guenter Butschek, says that there is a lot of potential for the entry hatchback market space. He said that there remains some market volume in the segment below the Tigor and the Tiago where the company has no dominant play yet, but insists that the company does plan on entering the market. Tata has already made a declaration to move to just 2 platforms for all of its products – Omega and Alfa.
28 March 2019
Tata Motors plans on invading entry hatchback market
Following the success of the Tata Nexon and the Tata Tiago, Tata Motors is now planning on attaining even greater volumes by entering the entry hatchback market. The entry hatchback segment sits just below the Tiago, and though many argue that the Nano and the Indica have cemented Tata’s presence in the segment, that is not actually true. The CEO of Tata Motors, Guenter Butschek, says that there is a lot of potential for the entry hatchback market space. He said that there remains some market volume in the segment below the Tigor and the Tiago where the company has no dominant play yet, but insists that the company does plan on entering the market. Tata has already made a declaration to move to just 2 platforms for all of its products – Omega and Alfa.
Mahindra recently announced that its latest subcompact SUV, the XUV300, has surpassed the 13,000 bookings benchmark within a month in India. The bookings for XUV300 opened in mid-January and crossing the milestone of 13,000 bookings is definitely a piece of positive news for the company. The model has been facing tough competition with Maruti Suzuki Vitara Brezza, Ford Ecosport, and Tata Nexon.
Responding to the new milestone, Veejay Ram Chakra, chief of sales and marketing at Mahindra, stated that the company was elated with the overwhelming response. Despite being in the competitive category of compact SUV, Mahindra XUV300's exceptional performance has led it to the top 3. He further added that most of the bookings were for the top end variant of the XUV300.
In India, the XUV300 is priced from Rs.7.9 lakh and goes up to Rs.11.99 lakh. It comes in three variants W4, W6, and W8 with an option of W8 (O). One of the most feature-rich models in the segment, the XUV300 is equipped with projector headlamps with LED DRLs, LED taillamps and disc brakes for all 4 wheels. The car also boasts of climate control, 7-inch touchscreen infotainment system, cruise control, steering mounted audio control, and more.
15 March 2019
Facelift for the 2019 Ford Figo revealed
Ahead of its launch on 15 March 2019, the 2019 version of the Ford Figo was unveiled. Compared to the car that was initially launched in 2015, the facelift version of the car gets various upgrades. A host of new features, new engine options, and cosmetic changes are some of the upgrades that are available in the new model. The new Ford Figo will be launched on Tinder, a mobile dating app, to target young customers.
The Ford Figo will come with a sporty new grille and bumper with C-shaped bezels on the fog lamps. The rear portion of the car will get tweaked taillights as well as a new bumper. However, the alloy wheels remain the same. The car will get a new touchscreen infotainment system which provides support for Android Auto, Apple CarPlay, and SYNC3. The facelift version of the Ford Figo is expected to have the same engines as the new Ford Freestyle. It is expected to come with 1.2-litre Dragon petrol engine and 1.5-litre TDCi diesel engine. The car will come with a 5-speed manual transmission. The automatic version of the car is expected to be powered by a 1.5-litre Ti-VCT petrol engine. Over 320,000 units of the car have been sold in India since its launch in 2010. The complete details of the car will be available on 15 March 2019.
13 March 2019
Hyundai to offer cars on subscription basis
Hyundai Motor India and Revv, the self-drive car rental service provider, have joined hands to provide Hyundai cars on a subscription basis. Customers who opt for this facility will be able to choose a flexible ownership term which includes both short term and long term tenures. The customers will also be allowed to swap the cars from the range of Hyundai cars line-up as per their preference. The feature can be availed without making any down payments. Customers who choose a short term subscription will also not be required to pay any amount towards the maintenance of the car or the insurance.
The company has claimed that the customers who will opt for a subscription of one year or more, will be provided with new cars. After the announcement was made, the Senior Director of the Sales and Marketing department of Hyundai Motors India Ltd., SJ Ha has commented that they are very excited about the present scenario of Indian mobility. The car leasing service which is based on subscription has been kick started as a pilot project in 6 cities – Mumbai, Bengaluru, Delhi-NCR, Pune, Kolkata, and Hyderabad. There have been no announcements on the part of the company about the expansion of the project. The project is set to start in the first quarter of 2019.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
SBI has provided me a cheap and best loan service so i bought the car loan with them. They sanctioned the loan in 3 days. The interest rates are 8.9% which is a nominal one. SBI car loan was closed 2 years before. I have fore-closure the loan for that they have not taken any charges.
My car loan was taken from SBI its because of the floating interest rates. They have sanctioned the loan in 4 to 5 days. I took the loan 7 years back hence i have no idea about the processing fee and down payment. The interest rate was convenient for me. I have received the NOC letter as well once i closed the loan.
From SBI I have taken a car loan on 5 months before which was processed through showroom. I have provided some required documents and they have sanctioned a loan within 2 days. The amount was sufficient for the tenure period of 5 years. The rate of interest and processing fee are nominal. The car model is Mahindra CUV300 it is around 12 lakhs.
The services and rate of interest is good with State Bank of India interms of car loan. I have purchased Grand i10 in 2015, the loan process was very simple. They have provided me 80% funding and made down payment of 1L. The loan duration is 7years for 7L.
My car loan was taken from SBI because the interest rate is less and the processing fee was nominal. They have not deducted any hidden charges. I applied the loan amount of Rs. 4.5 lakhs and they have sanctioned the loan in 2 days. I have been paying the EMI amount of Rs. 7500 for the tenure period of 7 years.
I have purchased Eco4 car through State Bank of Indiaby doing a down payment of 75K and the total car value is 17L. The loan experience was good and it was completed before 2 years ago. The rate of interest is reasonable. The tenure period was 3 years.
I am having a good experience with State Bank of India on car loan process. They have provided me only 75% funding to purchase the car but HDFC BANK is doing preapproved loan upto 90%. I got a good response and the service. The interest rate is very very good on that time. I have purchased a HYUNDAI VERNA.
When i took the loan from SBI, the banking people were excellent. The employees are very friendly and giving confidence to the customer. Whenever i went to the branch, the manager is treating me as a important individual. The given interest rate is nominal. I got the loan amount of Rs. 3.75 lakhs. I have pre-closed the loan with zero charges.
I have taken a car loan with SBI bank on last year. Through showroom I got an chance to taken a loan from SBI. The amount which was offered sufficient for the tenure period of 5 years. The rate of interest and processing fee are nominal. I bought a car model for swift.
I have taken a car loan with State Bank of India because they given for a nominal interest rate than other banks, which was applied directly to showroom. The process was smooth and received loan on time. I have bought for Maruthi 800 for the tenure period of 5 years. The amount paying for 6300 rupees.
I have a car loan with State Bank of India because they gave me a lower interest rate than other banks. The customer service is average which they need to improve a lot. I bought Tiago and made down payment of 1.95L. The loan duration is 6 years..
I have taken a car loan with SBI bank on 6 months before which was applied directly through showroom. They have sanctioned the amount 6 lakhs for the tenure period of 5 years. The rate of interest and fee are nominal. So far no issue I faced for an EMI to pay. I bought a car for Hyundai i10.
I am running my car loan with SBI, it was a hassle free experience they have sanctioned the required amount of the on road price of the car. The interest is very nominal around 9%, there was no difficult faced even I didn't contact the customer care. In a week time car was delivered.
I have taken car loan through State Bank of India since the showroom dealer referred .I have got a clear picture about the loan process ,I am not going to disclose the car model and the loan amount .I have got the loan amount very quickly .I am totally satisfied with the service .
I am banking with SBI for long term when I went for the car loan I linked this account for ecs purpose on monthly basis. The customer support is very good even they have Yono app we can manage everything in one. There is no reward points for the debit card transaction.
I have applied for State Bank Of India car loan which was applied through Online .I have got all the details about the loan process very clearly .The rate of interest and the processing fee was very high .I have applied for the loan amount of 2.4 lakhs for the tenure of 3 years .The car model was Nano Twist ,I am planing to close the loan since rate of interest was high .
I have taken a car loan with SBI bank on 6 years before which was applied directly to bank. They have sanctioned the amount 4 lakhs for the tenure period of 7 years. The rate of interest and fee are nominal. They use to do auto debit from salary account for an EMI. I bought a car for swift 4th model.
My car loan is ongoing with State Bank of India and the process was easy. The interest rate is good and they have charged me a minimal processing fee. The loan has to repaid in 7 years. I have purchased Tiago Car and got 100% funding from the bank.
I have a car loan with State Bank of India, they have very tedious process. Its is very difficult to get the loan from them. The interest rate is good and once I get the loan then the process was easy. I made some down payment and they have provided me 80% funding. The loan tenure is 5 years.
Currently my car loan is running with SBI with the competitive rate, my loan amount was Rs. 4 lakhs for purchasing 2018 model, they took some processing fee it was minimal around 0.5%. The process was very smooth, I completed the documentation through showroom. It would be great if they improve their service.
Details
