It is like a dream come true when you buy your own car. The joy of driving your own car can’t be expressed through the medium of words. The car becomes a part of your family and so many memories are created one after the another. Buying a car requires a substantial amount of money and in case, you don’t have enough money you are forced to apply a brake on your car dreams. This is where a car loan proves to be beneficial.
You are just required to pay a small down payment sum and rest you can take a loan from the bank. Out of so many products, the one offered by State Bank of India is very much in demand due to its attractive interest rates. Remember there is no point day dreaming if you are not aware of the basics of anything. You have to first ensure that you are able to meet the criteria set by SBI for availing a car loan. To make things crystal clear for you, I have created this article stating the SBI car loan eligibility.
You can use the product to purchase any multi- utility vehicle, a new passenger car or a sports utility car. The bank finances up to 85% of the on road price of the vehicle. The repayment tenure for the same is up to seven years. The interest rate for a new car for men is 9.25% and for women it is 9.20%. The bank charges a processing fee of Rs. 1,000 along with the applicable service taxes.
- Age is a very important component which is used to check if you are eligible enough to repay the loan or not. The applicant should be between the age group of 21 to 65 years if he/she wants to get a loan from the bank. This means it is important for the applicant to attain the age of 21 when the loan application is signed. The loan has to be fully repaid by the age of 65 years.
- Salaried individuals who are regular employees of central/ state government, a private company, a public sector undertaking any such reputed organisation are eligible to secure finance from the bank. It is very mandatory that the net combined annual income of both the applicant and co-applicant should be at least Rs. 2.5 lakhs. The maximum amount that can be availed will be equal to 48 times of the net monthly income.
- Professionals, proprietors, businessmen, self-employed individuals, partnership firms who pay income tax are also eligible to apply for a loan. The gross taxable income or the net profit should be at least Rs. 4 Lakhs, if the applicant wishes to secure finance. He/she can add the income of the co-applicant as well. The maximum amount availed will be equal to four times of the net profit.
- People engaged in any kind of agricultural or allied activities can also look up to the bank to get a car loan. All they have to ensure is that the net annual income of both the applicant and co-applicant is at least Rs. 4 Lakhs. They can take finance up to three times of their net annual income.
It is very important for anyone who wishes to obtain funds from the bank, to have a proper look at the documents which will be submitted to the bank. See them right here-
- Proof of Identity- Voter ID card/ Aadhar card/ Driving License/ PAN card/ Passport
- Bank statement of the previous six months
- Proof of Address- Rent and Lease agreement/ Voter ID card/ Ration card/ Telephone bill/ Water bill/ Electricity bill/ Passport/ Life insurance policy
- Two photographs of passport size
- Proof of Income- For salaried individuals: Latest salary slip and Form 16. For self-employed individuals: Income Tax returns of the last two years along with Audited Balance Sheet and statement of Profit and Loss.
- People engaged in agricultural activity will have to show ownership of their land.
- For self-employed individuals: SSI registered certificate/ Sales tax certificate / Shop & establishment act certificate/ copy of partnership.
Now that you have known about SBI car loan eligibility, I believe you will now be able to check whether you are eligible for the car loan or not.