Car Loan SBI-An Affordable Option for Your Dream 4-Wheeler

All these years you saved money by saying 'No' to expensive temptations. You did because you had a goal in your mind i.e. to buy a car of your dream. Yes, saving is important as you need to make down payment to the dealer while taking out a car from the showroom. The down payment may be ₹ 40,000-80,000 based on a car model chosen. You saved the amount.

When you looked at the interest rates of the bank where you wanted to apply, they were higher and thus prompted you to delay your car purchase plan. But with SBI car loan, you can leave all such worries behind as the country's largest lender has slashed the interest rates to as low as 9.20%-9.25% from 9.60%-9.65% p.a. Let's further know about SBI car loan as we move along with the article.

Types of Car Loan Schemes:

SBI offers a slew of car loan schemes such as new car loan, loyalty car loan, NRI car loan, certified pre-owned car loan and assured car loan scheme. Let's go scheme by scheme and find what they have in store for you.  

SBI New Car Loan Scheme: Looking to bring home a brand new car? Apply for this loan scheme and serve your purpose. You can buy any of the new models falling in the passenger car, sports utility vehicle (SUV) or multi-utility vehicle (MUV) categories. This scheme enables you to avail a loan at an interest rate of 9.20% (Women)-9.25% (Men) p.a. The loan can be granted for a maximum tenure of 7 years. The extent of finance is limited to 85% of the on-road price of the car involving the cost of ex-showroom, RTO, insurance, accessories and others.

The loan amount can also equal to 4 times of the net annual income of an applicant. Processing fee ranges from ₹ 950-9,100 plus applicable service tax. An applicant with an annual income of ₹ 3 lakhs and above can be deemed fit to apply for a loan via this scheme. The minimum age at which you can apply is 21 years. While the maximum age of an applicant permitted at the expiry of a loan tenure is 65 years.

SBI NRI Car Loan Scheme: Here, the loan will be offered to an NRI applicant after a resident Indian agrees to become a guarantor. It is necessary that both the applicant and guarantor must have a minimum age of 21 years at the time of loan application. Also, they need to make sure they are not over 65 years by the time the proposed loan tenure is over.

The NRI applicant must have an Indian passport and a stable earning source besides meeting all other car loan eligibility criteria. These include holding a job contract or work permit, maintaining an NRI account with a minimum average balance of ₹ 50,000 with SBI for atleast 12 months and having a minimum net annual income of US$12,000. The interest rate and maximum tenure of the loan are 9.20%-9.25% p.a. and upto 7 years, respectively.

SBI Loyalty Car Loan Scheme: If you are looking for a 100% car finance, this is the scheme to opt for. Normally, a margin of 15%-20% of the on-road price is chargeable. But this scheme takes off the burden of margin payment from the shoulders of a borrower. To grab this offer, your net annual income must be a minimum of ₹ 2 lakhs. The maximum loan amount that can be offered to you equals to the difference between the 75% of the existing market value of your house or other security and outstanding in your home loan account, if any. The interest rates here range from 9.10%-9.15% p.a.

Certified Pre-owned Car Loan Scheme- SBI also finances for the second-hand car models which are certified by the dealers of the 4-wheeler makers. You can get a maximum loan equivalent to 70%-80% of the valuation of the used model. However, for the loan to be financed on the used model, you must make sure it is not over 5 years of operational life. The maximum loan tenure is upto 5 years. The interest rate applicable to the customers applying for a car loan via this scheme is 12.65% p.a.

Documents Required to Avail Car Loan at SBI:

To avail SBI car loan schemes, you are required a list of documents stated below.

• Identity Proof- PAN Card/Passport/Aadhaar Card/Voter ID
• Residence Proof-Utility Bill/Passport/Voter ID/Aadhaar Card
• Income Proof- Latest Salary Slip, Last 6-month Bank Statement, Form 16 for Last 2 years for Salaried. For Self-employed-ITR for the Last 2 Years, Profit & Loss Account Statement and Audited Balance Sheet for Last 2 Years
• Business Establishment Proof (For Self-employed Only)- Any of Service Tax/VAT/Sales Tax Registration and Shop & Establishment Act
• Passport Size Photographs 
• Duly Filled Application Form