Interest is computed based on Daily Reducing Balance
No Advance EMI
Optional Life Insurance Cover from SBI
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SBI Car Loan Fees and Charges
Charges
SBI Car Loan Scheme
Processing fee
New Car: 0.20% of the loan amount plus GST. Maximum of Rs.5,000 plus GST.
Certified Pre-Owned Cars: 0.50% of the loan amount plus GST. Maximum of Rs.10,000 plus GST.
Financing
Up to 90% of the car’s ‘On-Road Price’ may be provided
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 67 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.
Factors Affecting SBI Car Loan Interest Rates
SBI offers high-value car loans to its customers with the interest rates offered for new and used SBI car loans ranging between 7.70% and 10.50%. The SBI Car Loan 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.
Published On : 2020-09-23
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. 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: Under this scheme, 100% of the on-road price of the car may be provided as a loan. 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. he margin under this scheme is 100% of the fixed deposit for 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. Up to 75% of the on-road price of the car may be provided as a loan.
How to Calculate EMI on SBI Car Loan
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 SBI Car Loan 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.)
State Bank of India
7.70% and 10.50%
HDFC Bank
8.80% onwards (Rack Interest)
Axis Bank
8.75% p.a. onwards
ICICI Bank
7.90% p.a. onwards
Canara Bank
7.30% p.a. onwards
Federal Bank of India
8.50% p.a. onwards
Union Bank of India
7.40% p.a. onwards
How to apply for SBI Car Loan
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 on SBI Car Loan
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.
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:
Registration charges
Insurance and extended warranty
Annual maintenance contract
Cost of accessories
Total service package
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.
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.
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I got car loan offer from SBI which showroom suggested to apply. The rate of interest is 9.7% is fine. I taken this loan on 3.5 years back. The amount was sanctioned of 6L was sufficient with tenure period of 5 years. The car model Mahindra E2O. I have not any down payment. There are pre closure and part payment are applicable.
My car loan was taken from State Bank of India because the interest rate is low and the bank service is good. They have offered a loan amount of Rs. 5 lakhs and i made the down payment of Rs. 1.25 lakhs. The interest rate is 9%. I have been paying the EMI amount of Rs. 10600 per month for the duration of 5 years.
SBI is ready to provide the full loan amount of Rs. 10L for my car without any down payment. I didn't get the loan on time, i made one month EMI of Rs.13,000 after that i pre closed this loan. I got the normal interest rate, for pre closing they have charged only Rs. 500 and i purchased middle version car.
I have taken car loan through State Bank of India directly.The name of this car was TATA NIXON. The rate of interest and the processing fee was fine .I am paying the premium on EMI basis. I have applied for the loan amount of 7lakhs and i have made a down payment of Rs. 3L for the tenure of 10 years.
SBI bank is ready to provide the full loan amount of Rs. 10L for my car without any down payment. I dint get the loan on time i made one month EMI 13,000 after that i pre closed. I got the interest rate was normal, for pre closed they have charged only Rs. 500 and i purchased middle version car.
I have taken car loan through State Bank of India directly.The name of this car was TATA NIXON and the rate of interest and the processing fee was fine .I am paying the premium on EMI basis .I have applied for the loan amount of 7lakhs and i have made a down payment of Rs. 3L for the tenure of 10 years.
There is no hidden charges for my car loan and I have chosen SBI because the showroom dealer has suggested me this bank. Documentation process was smooth and i have given the down payment of Rs. 1 lakh. I pay the EMI amount of Rs. 10000 approximately. Total cost of the car is 7 lakh. I have selected the duration of 7 years.
I have taken car loan directly through SBI. The car model was 2019 and the name of this car was Volkswagen Vento .The rate of interest and the processing fee was very high and there was no processing fee .I have got all the details about the loan process very clearly and paying the premium on EMI basis .I have closed this loan successfully without any discrepancy.
I haven taken car loan from SBI. Everything was done on time and car was delivered on time .The rate of interest was bit high and the car model was MARUTI Suzuki Baleno .The loan amount got sanctioned on time .The loan process was clearly shared by the agent .I am satisfied with the service so far.
I went to SBI branch directly to apply the car loan and I have done all the paper work as well. I can make the part payment through online because of this reason i have selected this bank. I don't find any issue so far and the overall process got completed in a single day. I took the loan 2 to 3 years before and the loan is still going on.
The interest rate is low, no part payment or fore closure charges. It is very flexible so I have taken a loan from SBI. Bank offered me with 13L, complete price of the car, but i have opted only for 10L with the rate of interest 9.1%. It took only 3 days to process the loan.
I have taken car loan directly through SBI directly .The car model was Maruti Suzuki Wagnor .Still this loan is active and there was no difficulties faced so far .The rate of interest and the processing fee was nominal.I have submitted the documents on proper time and the service was satisfied .
I have taken car loan directly through State Bank oF India .The car model was Maruti Wagnor.The loan amount was sanctioned on time without any hassle .The rate of interest and the processing fee was nominal .The agent gave a clear picture about the loan process .There was no drawbacks faced while submitting the documents .
For SBI car loan, they have charged me a interest rate of 9% which can be reduced hence i'm not happy with the loan. SBI is better and good for its loan service. I had applied the loan amount of Rs. 10 lakhs and for the other car loan its 2.5 lakhs. They have not taken more time to sanctioned my loan because they have disbursed the loan in 2 to 3 days.
I have taken car loan directly through SBI .The car model is Hyundai Accent and got the loan amount on exact time frame .Each and every details about the loan process was clearly shared by the agent .The rate of interest was very less and got the loan amount on time without any delay. Still this loan is active and not yet faced any issues until I got the loan.
Taken my car loan 4 months back. I have bought the loan amount of Rs. 10 lakhs and they have sanctioned the loan immediately and the documentation process was simple and good. Within 1 day, they have processed the loan. They have provided me a interest rate of 8% and i have chosen the duration of 120 months.
Bought my car loan from State bank of India its because of less interest rate when i compared with others. I got the loan amount of Rs. 3 lakhs and i haven't paid any down payment. I have paid the EMI amount of Rs. 10000 per month. I have selected the tenure period of 3 years.
I have state Bank Of India car loan,the rate of interest was very nominal .I have got the loan amount sanctioned on time without any delay .Each and every details was clearly shared by the agent .I have submitted the required documents and i am comfortable with the service.
I have taken a car loan with SBI on 11 months before which was suggested by my friend who he is an agent. EMI paying for 11,600 rupees. They have given for 7 lakhs and 13 thousands tenure of 7 years. Within one week loan got sanctioned. The car model is TATA Nexon.
From SBI taken a car loan on 2 months before, through showroom suggested for this loan. With interest of 9.5% nominal. They have given for 5 lakhs tenure period of 7 years. IDV of 5.5 lakhs with some discounts given for 5 lakhs. For a processing fee of 2 thousands.
