State Bank of Patiala is an associate bank of State Bank of India. State Bank of Patiala, originally named Patiala State Bank, and currently an associate bank of the State Bank of India, was founded on 17 November 1917 and the functions of the bank included the normal functions of commercial banks, as also some functions similar to functions of a central bank for the princely state of Patiala. Continue reading to view more details about this loan.
|Interest Rate (Monthly reducing balance)||9.35%|
|Processing Fees||0.51% of the loan amount Minimum Rs.1020/- Maximum Rs.10200/- and Rs.5100/- for Mercedes Cars|
|Loan Tenure||1 year to 7 years|
In current times, owning a car has become more than just a luxury. With most of the cities facing the problem of inadequate public transportation systems, owning a car has become a necessity. It would free you from the hassles of having to wait for buses and having to pay those extra bucks for cabs. However, it is not wise to burn all your savings in the process of buying a car. A wise alternative would be to avail a car loan and pay the amount back in easy monthly repayments.
A pioneer in loans portfolio, State Bank of Patiala car loans will duly assist you in fulfilling your dream of owning a car. With features like high loan quantum and affordable interest rates, SBP car loans will delight every borrower.
SBP car loans comes with a host of features that benefit the customer. Salaried applicants are offered up to 48 times the net monthly income as the loan amount. Also, the loan tenure is very flexible and the applicant can choose a term of up to 7 years. The processing fee is very nominal and there is no charges for converting from floating to fixed rate, and vice versa. A complimentary group personal accident insurance cover is offered to new car loan borrowers.
The following advantages offered by SBP sets it a league apart from other car loan products in the market.
With SBP offering up to 7 years of repayment tenure for car loan, borrowers can choose a term that they are most comfortable with.
At 0.5% above the base rate, SBP offers a very competitive interest rate for car loans.
State Bank of Patiala offers high loan amounts for car loans which will empower you to buy confidently, the car of your dreams.
Borrowers can escape from the otherwise costly foreclosure charges, SBP car loans has no fee for foreclosure of car loans.
All New car loan borrowers are offered free group cover for personal accident (death only).
As per the latest guidelines issued by the RBI (Reserve Bank of India), State Bank of Patiala (SBP) follows the MCLR (Marginal Cost Based Lending Rate) system to determine the interest rate on auto loans for new borrowers.State Bank of Patiala Marginal Cost Based Lending Rate (MCLR) for New Borrowers
|Benchmark MCLR rate||9.50%|
|Floating rate of interest||9.95% p.a (MCLR + 0.45%)|
The bank also offers overdraft facility under the car loan scheme an interest rate of 10.45% p.a. A special concession of 0.10% on the applicable rates is offered for existing home loan borrowers, central & state government employees, employees of select corporate companies, PSUs and to applicants from recognized universities/colleges.
Note: The MCLR is subject to periodic revision as per bank’s credit policy and RBI’s quarterly reviews. Make sure to confirm with the bank on prevailing rates at the time of applying and choose the terms accordingly.
Calculating your financial affordability is very important before you sign up for huge monetary commitment like loan. Just follow the steps given below to calculate the EMI for a State Bank of Patiala Car Loans.
All types of new cars inclusive of sedans, hatchbacks and luxury vehicles can be financed using the State Bank of Patiala Car Loan.
Yes, customers can apply for a State Bank of Patiala Car Loan on the bank’s website by entering certain personal details, loan amount, income, etc.
The interest rate offered by State Bank of Patiala is a floating interest rate.
Yes, an overdraft facility is available for new vehicle borrowers at an interest rate of 10.60% for a loan tenure ranging between three and seven years.
The interest rate offered for car loans is 0.45% above the base rate, which is 10.10% per annum.
State Bank of Patiala offers a concession of 0.10% on the car loan interest rate for the following borrowers -
No, interest rate resets are not feasible with State Bank of Patiala car loans.
No, State Bank of Patiala car loan borrowers do not have to pay any upfront fees while applying.
No, State Bank of Patiala car loan borrowers do not have to pay any pre-closure fees while closing their loan accounts.
State Bank of Patiala charges a processing fee of 0.51% of the loan amount, with the minimum being Rs. 1020 and the maximum being Rs. 10200. The processing fee charged for a Mercedes vehicle is Rs. 5100.
No, there will no refund on any fees if the car loan is rejected by State Bank of Patiala.
No, State Bank of Patiala does not provide the option of changing floating interest rates to fixed interest rates.
State Bank of Patiala will charge a penal interest of 1% on the outstanding amount for delayed payments and will charge Rs, 281 for bounced cheques.
The State Bank of Patiala car loan should be paid back as monthly installments.
The primary security that has to be given is the hypothecation of the vehicle along with the record of the hypothecation in the RTO book. No other collateral security is required.
The annual statement will be issued on the 31st March of every year by State Bank of Patiala.
The maximum car loan tenure approved by State Bank of Patiala will be up to 84 months.
The maximum car loan amount approved by State Bank of Patiala will be up to 85% of the on-road price of the vehicle.
The loan margin that has to be brought in by borrowers is 15%.
Yes, customers have to disclose their CIBIL score for the verification process conducted by State Bank of Patiala.
State Bank of Patiala might request for a third party guarantor according to the profile and credit history of the applicant.
Yes, State Bank of Patiala car loan borrowers can get in touch with the toll free customer care number at 1800-180-2010 for feedback and queries.
Salaried employees, agriculturists and self-employed professionals are eligible to avail a State Bank of Patiala car loan.
No, the State Bank of Patiala car loan is a term loan with no set limits for new vehicles.
Yes, the overdraft limit would be up to Rs. 3 lakhs for State Bank of Patiala customers.
The maximum loan amount approved for salaried employees is up to 48 times their net monthly salary.
The maximum loan amount approved for agriculturists is up to three times their net annual income.
The maximum loan amount approved for other types of applicants is up to four times their net annual income.
State Bank of Patiala sanctions loans with tenures to up to seven years, with the loan reducing significantly before the borrower reaches 70 years.
State Bank of Patiala will disburse the sanctioned amount to the car dealer/seller using a DD, pay orders, RTGS or NEFT transfers.
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