Under personal banking, State Bank of Hyderabad provides loans not only for the purchase of new vehicles but also second hand vehicles. The SBH Used Car Loan makes it much easier to purchase your dream car with features like competitive rates of interest, flexible repayment terms and more.
Following are some of the notable features of the SBH Used Car Loan.Category of vehicles
This car loan may be used to finance the purchase of passenger cars, multi-utility vehicles (MUVs) and sports-utility vehicles (SUVs) which are not more than 5 years old from the date of registration.No Processing Fee
Save more as the SBH Used Car Loan, does not involve any processing feeLoan Amount
Salaried applicants can avail loan amounts up to 48 times of their net monthly income while self-employed persons can avail a loan amount up to 4 times their net annual income.
A used car loan from SBH typically attracts a higher interest rate compared to a loan for new cars, with SBH relying on the base rate and MCLR to determine the applicable interest. The interest payable depends on the date of loan sanction, with borrowers who availed a loan before April 1, 2017 falling under the ambit of Base Rate, while new borrowers are covered by MCLR.
State Bank of Hyderabad Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
SBH has introduced MCLR benchmark rates following directives issued by the RBI. These rates factor in the current cost of operating a bank, providing real-time incentives to borrowers. The table below highlights the current MCLR at SBH.
|MCLR Benchmark Tenure (Period)||Benchmark Rates (MCLR)|
Used car loan interest rates (2018)
The final interest payable by a new borrower includes a component which is over and above the base MCLR. This additional portion is decided by the bank, with the loan tenure and banking relationship playing a key role in finalising the interest.
State Bank of Hyderabad Base Rate (For existing borrowers)
|Base Rate||9.75%, effective October 8, 2015|
State Bank of Hyderabad interest rate for used cars (Based on Base Rate)
Existing customers who wish to continue with their current system of interest will be liable to pay the following rates.
|Less than 3 years||15.30% per annum|
|More than 3 years||15.50% per annum|
Note: Rates mentioned here are indicative and valid as of Jan, 2018. SBH reserves the right to modify these rates without prior notice and borrowers should check the rates with the bank before applying.
This car loan is available for professionals, self-employed individuals and businessmen (who is an income tax assessee) and also individuals who are involved in agricultural or allied fields. Following are some of the eligibility conditions which applicants must fulfill in order to apply for the SBH Used Car Loan.
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