SBI Car Loan – Get Set Go in your Dream Car

Reward yourself with the car of your desire as State Bank of India, the country’s largest bank makes it easy for the customers to arrange funds. Yes, SBI Car Loan is now available at an attractive rate of interest. Potential buyers who have been waiting for long to get their favourite car but were unable to do so in the absence of appropriate amount can avail the loan from the bank. The bank lends for the maximum tenure of 7 years.  The customer can repay the loan amount in easy installments of equal amount. This will spare the customer from making bulk payments and reduce the burden.

The bank provides loan for the purchase of both new and used cars. The product can be used to purchase any multi- utility vehicle, a new passenger car or a sports utility car.  Anybody can secure a car loan from SBI be it a self-employed individual, a salaried employee or a person engaged in agricultural activities. The SBI car loan eligibility criteria is as follows:

Eligibility Criteria-

  • 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.

Documents Required-

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.

The bank has proposed multiple schemes so that the consumer can choose the one that best suits his/her interest. According to the need, the customer can select the product. Whatever, the scheme you choose, make sure you check the interest rate before applying. This will help you plan your budget.  Read the following section to know the lending rate.

SBI Car Loan Interest Rates

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. On the other hand, the used models come with an interest rate of 13.15% per annum.

Calculate your installment amount using the EMI calculator. This will give you an idea of how much charges you have to pay each month to settle the loan amount.