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    State Bank of Mysore Used Car Loans

    Established as Bank of Mysore Ltd in the year 1913, under the benefaction of the erstwhile Govt. of Mysore, State Bank of Mysore (SBM) became an associate of State Bank of India in March 1960. The banks shares are listed in Bangalore, Chennai and Mumbai stock exchanges. SBM boasts of a widespread network of 1002 branches (as on 31.12.2104) and 9 extension counters across the country. These numbers are inclusive of 20 small and medium enterprise branches, 3 corporate accounts branches, 4 industrial finance branches, 7 specialised personal & services banking branches. Giving support to the bank are 5 service branches and 1 asset recovery branch.

    Apart from offering services like Personal Loan, Mortgage Loan, Housing Loan, Educational Loan, SBM offers Car Loan for purchase of new cars as well as used/second hand cars. Smooth processing, affordable rates of interest and free accident cover (death risk only) has made SBM a really popular bank to apply for a car loan from.

    Features and Benefits of State Bank of Mysore – Used Car Loan

    The significant features of the SBM Used Car Loan are as follows –

    Category of Cars

    SBM offers used car loan for the purchase of passenger cars, Jeeps and Multi Utility Vehicles (MUVs), which are not more than 5 years old from the date of registration.

    Low Processing Fee

    The processing fee for SBM used car loan is as low as 0.20%.

    Fitness Certificate

    To avail used car loan from SBM, you need to submit a certificate of fitness/valuation (for the car) from a reputed garage. This works as a huge benefit because it gives you an authentication of the vehicle being in a good/fit condition despite being used.

    Accident Insurance Cover (death risk only)

    SBM offers accident insurance cover for free, only in case of a death risk, to its customers, on new and used car loans. This is a huge plus as given the unpredictable traffic conditions these days, accidents are quite common.

    Loan Amount and Repayment
    • A salaried individual can avail any loan amount up to 48 times of his/her net monthly income.
    • Self-employed professionals, businessmen (proprietary or partnership firms) can avail any loan amount up to 4 times their respective net monthly income.
    • Agriculturists can avail any loan amount up to 3 times of their net annual income.
    • The tenure to repay the loan is within 7 years from the date of original purchase of the vehicle.
    SBM Used Car Loans Eligibility Criteria

    Following are the eligibility criteria for availing used car loan from SBM –

    • A salaried individual employed with State/Central Government or Public Sector Undertakings must have a minimum Net Annual Income of Rs. 3 lakhs.
    • Other salaried individuals and pensioners must have a minimum Net Annual Income of Rs. 4 lakhs.
    • Self-employed individuals and businessmen must have minimum Net Profit or Gross Taxable Income of Rs. 4 lakhs (as per ITR)
    • Agriculturists must have minimum Net Annual Income of 4 lakhs. In case of co-applicants a total income of Rs 4 lakhs(joint income) is fine.
    Documents Required for SBM Used Car Loans

    You need to submit the following documents to apply for used car loan from SBM -

    • Your bank account statement for the last 12 months.
    • 2 passport size photographs.
    • Copy of your identity proof - Passport /Voters ID card/PAN card.
    • Residence/ address proof - tax receipts, telephone bill, electricity bill.
    • Your latest salary-slip (depicting all deductions) and TDS Certificate-Form 16 (for salaried individuals).
    • Your Income tax Return documents for the last 2 financial years (acknowledged by the ITO) for salaried individuals.
    • Proof of official address (for non-salaried individuals).
    • Pro forma invoice of the vehicle.
    • Vehicle fitness certificate

    State Bank of Mysore Used Car Loan Interest Rates

    Interest charged by State Bank of Mysore on its used car loan depends on certain benchmarks, with MCLR and Base Rate being critical aspects. SBM introduced MCLR benchmarks in accordance with new RBI rules, with all borrowers who avail a loan in the FY 2016 falling under its ambit. Existing users can choose between MCLR and Base Rate benchmarks, as per their convenience.

    State Bank of Mysore Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)

    The table below highlights the MCLR rates at State Bank of Mysore for the current month. These rates are indicative and are liable to change on a monthly basis.

    MCLR Benchmark Tenure (Period) Benchmark Rates (MCLR)
    Overnight 9.15%
    1 month 9.25%
    3 months 9.30%
    6 months 9.40%
    1 year 9.50%

    Used car loan interest rates – May 2016

    The table below highlights the interest rate as per MCLR benchmarks.

    Loan Tenure Interest Rate
    < 3 years MCLR + 6.55% = 16.05% per annum
    > 3 years MCLR + 7.30% = 16.80% per annum

    State Bank of Mysore Base and Prime Lending Rates (For existing borrowers)

    Base Rate 9.65%, effective 07/10/2015
    Prime Lending Rate 15.00%, effective 04/03/2013

    State Bank of Mysore interest rate for used cars (Based on Base Rate)

    Customers who do not wish to migrate to the MCLR platform can continue paying interest computed taking the base rate into account. The applicable interest in such case is 10.10% per annum (Base Rate + 0.45%).

    Note: Interest rates mentioned here are applicable as of June 8, 2016. SBM has the power to alter these rates without prior notice and borrowers should check the same before applying.

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