If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
| Loan sanction period | Base rate | Existing interest rate | Revised interest rate |
|---|---|---|---|
| Prior to 03.10.2012 | 2.50% | 12.40% | 12.15% |
| 04.10.2012 - 30.04.2015 | 0.75% | 10.65% | 10.40% |
| 01.05.2015 - 20.09.2015 | 0.50% | 10.40% | 10.15% |
| 21.09.2015 - 06.10.2015 | 0.45% | 10.35% | 10.10% |
| 07.10.2015 - 30.11.15 (Campaign period) | 0.30% | - | 9.95% |
| SBM Advantage Car Loan scheme | 2.50% | 12.40% | 12.15% |
| Car Flex Scheme (withdrawn from 21.09.15) | 3.00% | 12.90% | 12.65% |
The State Bank of Mysore offers car loan schemes for customers to buy new or pre-owned cars easily and conveniently. With a loan from SBM, you can make the dream of owning your own personal vehicle come true without much financial burden. Pay the loan back in easy instalments over long tenures. Get free accident insurance cover in case of death with the SBM car loan for new vehicles. Whether you’re eyeing a car, jeep, MUV or SUV, an SBM car loan will help you make that vehicle your own.
>The tables below are a comprehensive depiction of the rates of interest offered by State Bank of Mysore for car loans sanctioned under different schemes from October 2012 upto October 2016.
| Loan tenure | Base rate | Existing interest rate | Revised interest rate |
| Up to 3 years | 6.50% | 16.40% | 16.15% |
| 3 to 5 years | 7.25% | 17.15% | 16.90% |
| Loan sanction period | Base rate | Existing interest rate | Revised interest rate |
| Up to 20.09.2015 | 0.25% | - | 10.25% |
| 21.09.15 - 06.10.2015 | 0.20% | - | 9.85% |
| 07.10.2015 - 30.11.2015 (Campaign period) | 0.20% | - | 9.85% |
| From 07.10.2015 | 0.35% | 10.10% | 10.00% |
| Type of Charge | Fee |
| Service charge on new car loans | 0.20% of the loan amount subject to a minimum of Rs. 500 and a maximum of Rs. 10,000. |
| Processing charges on used cars | 0.20% of the loan amount |
| Prepayment charges | Nil |
| Vehicle insurance | Comprehensive cover for the full value of the vehicle is required. |
| Accident insurance | Free (for death risk only) |
| Failed EMI | Rs. 25 |
EMI calculators are handy tools that one can use when applying for a loan. To determine your EMIs and interest payable on your SBM car loan, you can use the EMI calculators available online. Before you apply for a State Bank of Mysore car loan, you can check your eligibility and if the loan is affordable on BankBazaar.com. The following steps will help guide you through the EMI calculator.
Alternatively, if you wish to calculate your SBM EMI manually, you can use the formula below:
(Principal) X (Interest rate per month) X (1+Interest rate per month) to the power of loan tenure
[(1+Interest rate per month) to the power of loan tenure – 1]
In short, the formula used is E = P*r*[(1+r)^n/(1+r)^n-1)]
E = EMI
P = Principal amount
R = Rate of interest per month
N = Number of years
For example, if you take a car loan from State Bank of Mysore and it is sanctioned in October 2015, the following will be your loan details, assuming a loan quantum of Rs. 5 lakhs for a period of 5 years at the campaign interest rate of 9.95% p.a:
EMI = Rs. 10,611
Interest payable = Rs. 1,36,674
Processing charges = Rs. 1,000
Total amount payable = Rs. 6,37,674
The amortization schedule below only depicts the yearly breakdown of the loan. A detailed schedule per month is available when you calculate your EMI on BankBazaar.com.
| Year | Principal Paid | Interest Paid | Total Payment | Outstanding loan balance |
| 2015 | Rs. 19,557 | Rs. 12,276 | Rs.31,833 | Rs. 4,80,443 |
| 2016 | Rs. 83,261 | Rs. 44,073 | Rs. 1,27,334 | Rs. 3,97,183 |
| 2017 | Rs. 91,933 | Rs. 35,403 | Rs. 1,27,336 | Rs. 3,05,250 |
| 2018 | Rs.1,01,510 | Rs. 25,825 | Rs. 1,27,335 | Rs. 2,03,742 |
| 2019 | Rs. 1,12,082 | Rs. 15,251 | Rs. 1,27,333 | Rs. 91,659 |
| 2020 | Rs. 91,658 | Rs. 3,842 | Rs. 95,500 | Rs. 0 |
Loan tenure - The tenure of your loan will greatly determine your interest rate. The bank may deem a higher rate of interest to be fit for a short loan tenure as the total interest you pay maybe lesser. Whereas, with a longer tenure, the total interest payable at the end will be much higher. So banks would offer a lower interest rate that will be charged for a longer period of time.
Customer relationship - Banks are happier to loan money to those who hold a salary account with the bank. If your salary is being credited to State Bank of Mysore, they may have special offers and interest rates on car loans for you. If you maintain a high-value savings or current account as well, the average quarterly balance you maintain with the bank will also be high. This will be more favourable towards interest rates on your SBM car loan. Also if you have taken loans from State Bank of Mysore before and maintained good repayment behaviour, the bank will keep a record of that and know that you are a credible customer.
Credit score - CIBIL keeps a record of all credit history in India. Banks report customer behaviour and patterns regularly to CIBIL. The Bureau keeps a track of it and determines your credit score based on your repayment history, defaults, on-time payments, credit card spending patterns and so on. A good score will directly translate to you being a creditworthy customer. Banks would be happy to approve your loan and you, in turn, can request for better terms and interest rates. A lower score, however, would make your loan process tougher, require more documentation and may result in higher interest rates.
Car model - In the event that you are unable to repay the loan, the banks will have to seize and sell the vehicle to recover the outstanding loan amount and interest. Different car models in each segment fetch different resale prices. Some car models depreciate faster than others. These cars will fetch a much lower price when sold as a pre-owned car, therefore banks will be able to recover a smaller amount. This may cause them to increase the interest rates when they are aware that the model’s value reduces significantly as time goes by. Banks also determine interest rates based on your choice of car segment such as sedans, hatchbacks, premiums, MUVs and SUVs.
Age of the car - In the case of pre-owned cars, the age of the vehicle factors into interest rates on your car loan. Interest rates on used car loans are generally much higher than if you choose to buy a new car. State Bank of Mysore offers car loans for used vehicles that are not more than 5 years old. For cars below 3 years old, the interest rate can be as low as 16.15% p.a. But for cars that are 3 to 5 years old, the interest rate is higher at 16.90% p.a. The resale value of the car will depreciate with age, therefore the rates of interest will be higher.
CIBIL is the Credit Information Bureau of India Limited which plays a significant role in the credit market in India. When a person takes out a loan or a credit card, they are automatically inducted into the CIBIL record when banks report their behaviour. Both good and negative behaviour goes on record. Reports are sent regularly by your bank in accordance to methods and guidelines set out by the board. So if you were to default on an EMI payment after being notified and warned, the bank would report you to CIBIL. This will have an impact on your score and result in a low CIBIL score. On the other hand, timely repayments and good spending patterns, or paying your credit card bill in full, will have a positive impact on your credit score. When you have a good credit score, you have a higher standing with banks. You can request for better interest rates and other terms on your car loan. When you have a low score, banks will be reluctant to give you a loan because they will not be able to put their trust in you to repay the loan in a timely manner. Banks may reject your loan application completely, or may impose stricter rules and higher interest rates on your loan.
Check Here: State Bank of Mysore Car Loan Customer Care
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