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State Bank of India is the largest lender in the country. The state-owned bank has a massive customer base who enjoy various services like banking, investment, loans and other financial services.

Car loans is an important portfolio for any bank in the lending business. Indians love to flaunt their vehicles and car loans are the best way of owning your dream car.

SBI is always known for its lowest interest rates, convenient repayment tenures and very less fees and charges associated with their loan products.

Snapshot of SBI Car Loans

Sbi Car Loan Interest Rates

Interest Rates

7.75% to 8.45%

Loyalty Car Loan Scheme

7.95% – 9.25%

Processing fees

Starting from 0.40% of Loan Amount + GST

Foreclosure charges

Up to 3% on closure amount + GST

Prepayment charges

1% of part payment amount + GST

Repayment options

Up to 7 years

Maximum loan amount

Up to 4 times of Net Annual Income

Maximum Loan Amount

Up to 90% of On-Road Price

Min. Annual Income

Rs. 2.50 Lakhs

Salient features of SBI Car Loans

  • Lowest interest rates & EMI in the market
  • Longest repayment tenure of up to 7 years
  • Financing Upto 90% of 'On-road Price'; On-Road price includes Registration, Insurance and Extended Warranty/ Total Service Package/ Annual Maintenance Contract/ Cost of Accessories
  • Interest calculated on Daily Reducing Balance
  • Car Loans available for purchase of new passenger cars, used cars, electric cars, Multi Utility Vehicles (MUVs) and SUVs
  • Certified Pre-Owned Car Loan Scheme for purchase of used cars
  • No advance EMI required
  • SBI Life Insurance cover available as an optional purchase

Different Car Loan products available from State Bank of India

  • SBI New Car Loan Scheme
  • Certified Pre Owned Car Loans
  • SBI Loyalty Car Loan Scheme
  • SBI Assured Car Loan Scheme
  • SBI Car Loan Elite Scheme
  • SBI Green Car Loan for Electric Cars

Factors affecting your SBI Bank Car Loan Interest Rates

The bank doesn’t give the same interest rate for every borrower. SBI car loan interest rates vary on the basis of a few variables, such as your age, income, employer, credit score, etc. Here is a look at the most significant factors that impact the interest rates for your car loan at SBI Bank:

Credit Score

A significant factor for calculating your car loan interest rate is your credit score. A good credit score means that your repayment history is good. A higher loan amount and lower interest rate are guaranteed. A higher credit score is regarded by banks as an indicator of your creditworthiness. This significantly affects the eligibility of your loan amount and interest rate.


A higher salary guarantees the repayment of the loan on time. Banks provide people with higher salaries with better loan terms. Banks also favour salaried individuals over self-employed individuals because salaries mean that the account receives regular cash flow. Self-employed professionals, however, have an advantage over salaried individuals since they earn more than they do.

However, note that despite having a higher income if you have already taken several other loans and have a huge debt-to-income ratio, then you may not enjoy the best possible interest rates on your car loan.

Your Age

During the car loan application process, the age of the borrower plays an important role. The younger the borrower, the higher the number of years he has to pay back the loan. Individuals who are 21 years of age can avail themselves car loans. In contrast to older applicants, the loan amount and interest rates are very favourable for applicants of a younger generation.

Vehicle Model and Age

The vehicle would act as collateral in the case of a car loan. The bank or the NBFC would seize the vehicle in the event that the EMIs are not received. When setting interest rates, the type and age of the vehicle are then taken into consideration. A respectable manufacturer's new vehicles have lower interest rates compared to older ones. As the value of the car depreciates with age, used vehicles also come with high interest rates.

Type of Employment & Employer

Employment with a reputable company would certainly get you a decent deal on interest rates on your SBI Bank Car Loan. In authorizing the loan, several banks have a list of accredited employers and reputable bodies to which they refer. Employment in these companies guarantee the security of work and the flow of income to bankers. You are also allowed to seek an offer of higher car loan amounts and lower interest rates.

Relationship with the lender

Bank customers with a long term relationship are always given preference, based on the fact that their credit record is easier to access. The bank will be able to check your account history, any previous credit or credit card payments and your general financial status if you are a current SBI Bank client. Thus, the active customer is given preferential interest rates on loans.

Adding a co-contributor on the application

If you have another earning member of the family, you can add them to the loan as a co-applicant so that their income is also taken into account while processing your application for car loans. If both of your income is entered, the result is a higher repayment potential and thus a lower interest rate.

Amount of down payment

While SBI Bank gives you up to 90% of the vehicle's road cost as a loan value, if you can make a higher down payment, you can negotiate better interest rates. Higher down payments mean lower debt balances and greater repayment potential. Banks are actively searching for low-cost lending consumers to reduce their default credit risk. So when you offer a higher down payment, you have a shot at having a lower interest rate.

Existing liabilities and investments

Last but not least, your current loans and obligations play an important part in assessing the eligibility of your car loan and interest rates. If you have current obligations, the repayment potential would be limited. This is perceived to be a high risk plan for the lender. It would also place more pressures on the cash flow. Therefore, an individual with a very low or no current liability is a preferred candidate for any bank.

How to negotiate for the best car loan interest rates with SBI?

Buying a car is a dream for many families. So a lot of thought and consideration goes in before the purchase is made. Though it is easy to find a suitable car for your family, it takes more work to find the best lender for your Car Loan.

SBI car loans come with affordable interest rates and longer repayment tenures. They are also one of the lenders offering up to 90% of on-road value with the lowest processing fees in the car loan market. Still, there are a few factors one should consider before settling in for a Car Loan:

Be up to date with your Credit Score: As stated earlier, credit score plays an important role in getting the best loan terms. Higher the credit score, lower the interest rate. Know the different credit score ranges and the corresponding interest rates offered by the lender. This allows you to plan ahead and improve your credit score beforehand to take advantage of the best loan offers.

EMI Payments: Finding out the approximate monthly EMI for the expected loan amount gives clarity on your monthly budgeting. Your Car Loan EMI will include your principal and interest components. You can use CredtiMantri’s Car Loan EMI Calculator to determine the approximate monthly EMI so that you can determine your repayment affordability.

Cost of Car Insurance: It is a must to get annual car insurance for every car in India. Car Insurance premium is determined on various factors like the make, model and year of manufacturing of the vehicle. Car Insurance is a costly affair and you should find out beforehand the approximate annual car insurance premium so that you can get your finances in line.

Maintenance and Repairs: As some people joke, ‘A Car is a White Elephant’, meaning, it takes quite an amount of money for its regular maintenance and repairs. Find out the warranty and maintenance options available for your vehicle. You can negotiate for longer warranty or free maintenance offers with the dealer to reduce this particular burden.

State Bank of India Car Loan Eligibility Criteria

Eligibility Criteria

Eligibility Details


21 years - 67 years

Loan Tenure

7 years

Loan to Value Ratio

90% of on-road price

Income Criteria


Income Criteria

Max. Loan Amount

Regular employees of Central Public Sector Enterprises (Maharatnas/ Navratnas/ Miniratnas).  Defence Salary package (DSP), Para Military salary package (PMSP) & Indian Coastal Guard Package (IGSP) Customers and Short Commissioned Officers of various Defence establishments.

Minimum of Rs. 3 lakhs

48 times of the Net Monthly Income

Professionals, Self-employed, Businessmen, proprietary/partnership firms and others who are income tax assesses

Net Profit or Gross Taxable income of Rs. 3 lakhs

4 times Net Profit or Gross Taxable income as per ITR after calculating depreciation and other existing liabilities

Persons engaged in agriculture and allied activities (Income Tax return not required in such cases)

Net Annual income should be a minimum of Rs. 4 lakhs

3 times of Net Annual Income

State Bank of India Car Loan Interest Rates FAQs

1.What is the lowest interest rate I can get on State Bank of India Car Loans?

As per current market, State Bank of India offers car loans starting with an interest rate of 7.75%. as stated earlier, the number is determined based on various factors.

2. Is there any benefit by adding my brother, who is an employee with a reputed MNC, as my co-applicant on the car loan application?

Very much. Adding a co-applicant increases your chance of getting competitive interest rates on your State Bank of India Car Loan. Also, a reputed employer can get you additional preference.

3.Are there any charges for prepayment or pre-closure of my State Bank of India car loan?

Yes, SBI Car Loans have the following prepayment and pre-closure charges: Foreclosure charges - Up to 3% on closure amount + GST Prepayment charges - 1% of part payment amount + GST

4. What is the minimum & maximum tenure of State Bank of India car loans?

State Bank of India car loans come with a flexible repayment tenure starting from 12 months and up to 7 years.

5. How much processing fee is charged by State Bank of India on car loans?

State Bank of India charges a processing fee of 0.40% on the loan amount subject to a minimum of Rs. 1000 + GST and a maximum of Rs. 7500 + GST.

6. What constitutes the On Road price of the car?

SBI Car Loans provide up to 90% of the On Road price of the car as loan amount. These are the components of ‘On Road’ price of a car:

  • Cost of Vehicle
  • Registration Charges
  • Insurance Charges
  • Accessories
  • Annual Maintenance Cost
  • Extended Warranty Packages

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