Introduction to SBI used car loans
State Bank of India is one of the largest lenders in the country and a Fortune-500 company. Established 200 years ago, this public sector bank is a leading provider of used car loans as well. SBI provide the best car loan scheme for you to purchase a secondhand car, provided it is not older than 5 years. Under SBI used car loans, you can take finance for purchase of pre-owned passenger cars, Multi Utility Vehicles (MUVs) and SUVs that aren’t older than five years. SBI offers easy repayment options and comparatively lower interest rates, thereby quickly establishing itself as a popular pre-owned car financier.
Features & benefits of SBI used car loans
SBI used car loans offer you:
- No Advance EMI
- Longest and easy repayment tenure (7 years)
- Lowest interest rates
- Lowest EMI
- Loan-to-value upto 85% of on-road price of car ( this includes insurance, registration and accessories worth Rs 25, 000)
- Interest calculated on Daily Reducing Balance basis
- Flexibility of paying EMI anytime during the month
- Low pre-payment penalty, only 2%
- Low processing fee not exceeding 0.51% of loan amount
- SBI Life cover optionally available to applicants
Eligibility Criteria for SBI Used Car Loans
To avail an SBI used car loan, you should be:
- An individual between 21-65 years of age.
- A permanent employee of State / Central Government, PSUs, private limited company or a reputed establishment, or
- A professional or self-employed individual who is an income tax assesse, or
- A person engaged in agricultural cultivation and allied activities.
- The net annual income of applicant and/or co-borrower if any, together should be Rs. 3,00,000.
- Self-employed, professionals and Proprietary / Partnership firms: Net Profit or Gross Taxable income of Rs. 4,00,000 p.a. ( income of co-borrower can be clubbed together.)
- Agriculturist: Net Annual income of applicant and/or co-borrower together adds up to be Rs. 4,00,000.
SBI allows a used car loan amount 2.5 times of net annual income of the applicant. Spouse’s income could also be considered provided the spouse becomes a co-borrower in the loan.
Documentation Required for SBI Used Car Loans
Used car loan applicants would need to submit the following documents along with the completed application form to SBI:
- Borrower’s bank statement copy for last 6 months.
- 2 passport size photographs of borrower(s).
- Signature identification from bankers of borrower(s).
- A copy of passport /voter’s ID card/PAN card.
- Proof of residence
- Copy of most-recent salary-slip showing all deductions
- I.T. Returns/Form 16: Two years for salaried employees and three years for professional/self-employed/businessmen duly accepted by the ITO wherever applicable to be submitted.
- Proof of official address for non-salaried individuals
A margin of 15% of the on the road price is required (which includes vehicle registration charges, insurance, one-time road tax and accessories).
Customers can enjoy the longest repayment period in the industry with SBI used car loans--as long as 84 months. A longer tenure can mean lower EMIs for borrowers.
SBI charges a flat processing fee at 0.51% of loan amount on used cars.
SBI Used Car Loan Interest rates:
SBI charges a percentage point of 0.45% over base rate for applicants who are men, and 0.40% over base rate for women applicants on its used car loans. Interest rates also vary for loans on used and certified cars and for terms above 3 years.