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    State Bank of Patiala Used Car Loans

    State Bank of Patiala offers used car loan for purchase of passenger cars/ jeeps/ multi Utility Vehicles (MUVs) and SUVs which are not more than five years old, at a margin of 15%.

    Features and Benefits of State Bank of Patiala Used Car Loan

    • Maximum loan amount provided is up to Rs.15 lac.
    • Salaried applicants are liable to receive 48 times net monthly income, self-employed and professionals can avail 4 times of net annual income, and persons engaged in agriculture and allied activities can avail 48 times their net annual income.
    • Annual net income for agriculturists should be arrived at by branches based on the nature of their activity, landholding, yield etc. and average income received.
    • Income of spouse, father, mother, brother, sister, son or daughter may be included by joining them as a Co-applicant/Co- borrower, to meet loan eligibility.
    • Takeover of car loans is considered only it satisfies the conditions such as: vehicle is not more than 2 years old and is a single ownership vehicle, no insurance claim has been redeemed and the borrower has made all repayments as per term of sanction of the other Bank.
    • Repayment of loan has to be done within 7 years from the date of original purchase.
    • Car loan borrowers who have applied online shall receive a concession of 0.50% in applicable processing fee.

    State Bank of Patiala Used Car Loan Eligibility Criteria

    • The applicant has to be aged between 21 to 65 years. The loan has to be repaid within 70 years of age.
    • Job criteria to be met includes applicants who are permanent employees of State/Central Govt., Public Sector Undertakings, Private Sector organizations and reputed establishments.
    • Under this scheme, professionals, self-employed and others who are income tax assessees and persons engaged in agriculture and allied activities are eligible to avail the loan.
    • The conditions applicable for Salaried applicants to avail loan are :
      1. The applicant should have an annual income of Rs.3, 00,000 or above.
      2. The net monthly income should be twice the amount to be paid as EMI.
    • The condition applicable for Self Employed and Professionals to avail used car loan is that he/she should have a Net Profit or Gross taxable income Rs.4,00, 000 and above.
    • For persons engaged in agriculture and allied activities, income eligibility is Rs.4, 00,000 and above of net annual income.

    State Bank of Patiala Used Car Loan Interest Rates

    Interest rates charged by SBP on its used car loans are extremely competitive, with the bank relying on MCLR and Base Rates to determine the final interest. MCLR is a new benchmark adopted by the bank, reflecting current financial conditions. While all new borrowers are automatically charged interest based on MCLR, existing borrowers can choose to move to this system.

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

    SBP modifies its MCLR based on factors like repo rate, CRR, operating costs, profit margin, etc. This MCLR is subject to change on a regular basis, with the current benchmark being 9.50% per annum, effective 15/04/2016.

    Used car loan interest rates – May 2016

    The loan repayment tenure plays a critical role in determining the final interest an individual is liable to pay, with the table below highlighting this relationship.

    Loan Repayment Tenure Interest Rate
    36 months MCLR + 6.50% = 16.00% per annum
    >36 months MCLR + 6.75% = 16.25% per annum

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

    Base Rate 9.65% per annum (effective 05/10/2015)
    Prime Lending Rate 15.00% per annum (effective 05/10/2015)

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

    Existing customers who do not intend to move to MCLR will continue paying interest as per the base rate. SBP can choose to modify this rate, with borrowers typically paying a certain percentage over and above the base rate. The final interest is computed by the bank after factoring things like the loan amount, tenure and relationship of a borrower with SBP.

    Note: SBP reserves the right to modify/alter interest rates without prior notice. All rates mentioned here are as of June 10, 2016. Eligible individuals should check the rates prevailing at the time of application.

    Documentation Required for State Bank of Patiala Used Car Loan

    At the time of loan application, the documents to be submitted are as follows:

    • 6 months bank account statement of the borrower.
    • Borrower/guarantor’s two passport sized photographs.
    • Signature identification from Banker of borrower/guarantor.
    • Identity proof in the form of a copy of passport/ voter ID card/ PAN card.
    • Residence/ Address proof.
    • Recent salary slip showing all deductions and TDS certificate. Salaried persons have to submit form 16.
    • Copy of income tax return for last two financial years duly acknowledged by ITO for professionals, self-employed and others.
    • Proof of official address for non- salaried individuals

    EMI Calculator

    The EMI calculator tool for the State Bank of Patiala Used Car Loan is available online through their website and it is efficient and easy to use. The values that are to be entered by the users include their desired loan amount, rate of interest in percentage as well as the loan tenure. Once all these factors are keyed-in, the results show in-depth information about the amount of EMI to be paid, sum of principal and interest that would be repaid, separate values of interest and principal as well as the balance amount.

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