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State Bank of India Car Loan

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State Bank of India Car Loan

If you have had a wish to buy a car and you’ve always put in on the backburner – well now it’s time to take the plunge. Owning a car is about convenience and comfort to move around to different places. There are several car loans available in the market with competitive interest rates, EMIs and tenures. So how do you decide which one to choose? Well, it’s simple. The State Bank of India (SBI) offers you the best deal for financing your new car – the lowest interest rates, lowest EMI and an easy application process. It is considered to be one of the best car loans in India.

Benefits of SBI Car Loan

Lowest Interest Rates and EMI: SBI car loans have both fixed as well as flexible rates. The rates in the year 2018 range between 10.40% and 10.45%.

Longest Repayment Tenure: SBI bank offers the longest car loan repayment period of 7 years or 84 months. This means that there are smaller EMIs that need to be paid every month.

Financing on ‘On-Road price': The loan for on-road prices which include registration, insurance and extended warranty, total service package and annual maintenance contract and cost of accessories.

  • If your net annual income up to Rs. 10 lakhs, the loan offered is 90% of the 'On-road Price'.
  • If your net annual income is more than Rs. 10 lakhs, the loan offered is 90% of 'On-road Price'.

Interest calculated on Daily Reducing Balance

No Pre-Payment Penalty or Foreclosure Charges

No Advance EMI: Car loans provided by SBI come with hassle free options. The applicant does not have to pay an advanced EMI at the time of taking SBI car loan. Further, they even get the option to pay off their EMIs at any time during the month.

Reimburse Finance for the Cars: SBI car loans reimburse finance for the cars purchased out of the customer’s own funds at rate of interest applicable to new car financing. Also, please note that the car should not be more than 3 month old.

Availing the Overdraft Facility

Eligibility for SBI Car Loans

Age: The individual’s age should be between 21 to 65 years old.

Salaried Applicants:

  • Regular employee of State/Central Government, public sector undertaking, private company or a reputed establishment
  • Net annual income of applicant and/or co-applicant if any, together should be a minimum of Rs. 2 lakhs 50 thousand.
  • The maximum loan amount is 48 times the net monthly income of the applicant.

Professional/Business Applicants:

  • Professionals, self-employed, businessmen, proprietary/partnership firms who access income tax
  • Net profit or gross taxable income of Rs. 4 lakhs per annum of the applicant and/or co-applicant
  • The maximum loan amount is 4 times the net profit or gross taxable income as per ITR after adding back depreciation and repayment of all existing loans.

Applicants who are Agriculturalists:

  • Net Annual income of applicant and/or co applicant together should be a minimum of Rs. 4 lakhs.
  • The maximum loan amount is 3 times of the next annual income.

Documents Required to Avail State Bank of India Car Loans

Salaried:

  • Statement of bank account for last 6 months
  • 2 passport size photographs
  • Proof of Identity: (Copy of any one) Passport/ PAN Card/ Voters ID card/ Driving License etc. Address Proof: (Copy of any one) Ration card/Driving License/Voters ID card/Passport /Telephone Bill/ Electricity bill/Life Insurance policy
  • Address Proof
  • Income Proof: Latest Salary Slip, Form 16
  • I.T. Returns or Form 16 for the last 2 years

Non-Salaried/Professional/Businessman:

  • Statement of bank account for last 6 months
  • 2 passport size photographs
  • Proof of Identity: (Copy of any one) Passport/ PAN Card/ Voters ID card/ Driving License etc. Address Proof: (Copy of any one) Ration card/Driving License/Voters ID card/Passport /Telephone Bill/ Electricity bill/Life Insurance policy
  • Address Proof
  • Income Proof: ITR for last 2 years
  • I.T. Returns or Form 16 for the last 2 years
  • Audited Balance sheet, P&L statement for 2 years, Shop & establishment act certificate / sales tax certificate / SSI registered certificate / copy of partnership

Person Engaged in Agricultural Activities

  • Statement of bank account for last 6 months
  • 2 passport size photographs
  • Proof of Identity: (Copy of any one) Passport/ PAN Card/ Voters ID card/ Driving License etc.
  • Address Proof: (Copy of any one) Ration card/Driving License/Voters ID card/Passport /Telephone Bill/ Electricity bill/Life Insurance policy
  • Direct agricultural activity (crop cultivation):
    • Khasra/Chitta Adangal (showing cropping pattern) Patta/Khatoni (showing land holding) with photograph
    • All land should be on free hold basis and ownership proof to be in the name of borrower
  • Allied agricultural activity (like Dairy, Poultry, Plantation/ Horticulture)
  • Documentary proof of running of the activities is to be provided

State Bank of India Car Loans for Pre-Owned Cars

SBI provides the best car loan scheme to take a loan purchase of certified pre-owned cars which are not more than 5 years old.

Benefits of SBI Car Loans for Pre-Owned Cars

  • No advance EMI
  • Longest repayment tenure of 5 years or 60 months
  • Lowest interest rates
  • Lowest EMI
  • Interest calculated on daily reducing balance
  • Flexibility of payment of EMI anytime during the month
  • Low processing fee (only 1% of loan amount)
  • Optional SBI Life cover

Eligibility to Apply for SBI Car Loans for Pre-Owned Cars

  • Individual between the ages of 21-65 years.
  • A permanent employee of State/Central Government, Public Sector Undertaking, Private company or a reputed establishment
  • A professional or self-employed individual who is an income tax assessee
  • Person engaged in agricultural and allied activities.
  • Minimum net annual income of applicant and/or co-applicant if any, together should be Rs. 2 lakhs.
  • The maximum amount loaned will be 2.5 times of the net annual income.
  • The spouses name should also be considered provided the spouse becomes a co-borrower in the loan.

Documents Required for SBI Car Loans for Pre-Owned Cars

  • Completed application form
  • Statement of bank account of the borrower for last 6 months
  • 2 passport size photographs of borrower(s)
  • Signature identification from bankers of borrower(s)
  • A copy of passport /voters ID card/PAN card
  • Proof of residence
  • Latest salary-slip showing all deductions
  • I.T. Returns/Form 16: 2 years for salaried employees and 3 years for professional/self-employed/businessmen duly accepted by the ITO wherever applicable to be submitted
  • Proof of official address for non-salaried individuals

State Bank of India Car Loan for Loyal Customers

MarginNIL-100% On Road finance
AgePeople with age between 21- 65 years are eligible.
Eligibilityi) Regular employees of State/Central Govt., Public Sector Undertakings, corporations, private sector companies, and reputed establishments.
ii) Professionals, Self-employed, Businessmen, proprietary/partnership firms and others who are income tax assesses can avail of the loan facility
iii) Persons engaged in agriculture and allied activities can also avail the car loan. Income Tax return is not required in case of agriculturists
Minimum Income CriteriaNet Annual Income of applicant and/or co-applicant if any, together should be Rs. 2,00,000/-
Maximum Loan AmountA) 75% of present market value of the house property less present outstanding in the Home Loan account and Home Equity, if any. The present market value of the property will be decided as per fresh valuation report obtained from empanelled valuer. However, in cases where adequate cushion is available based on the original value of the property, fresh valuation need not be obtained.
B) Minimum Net Annual Income of the borrower will be Rs 2.00 lakhs. We propose to lower income criteria because the car loan will be adequately secured by the extension of mortgage of house property/lien on title deeds as stipulated in (A) above.
C) EMI/NMI ratio will be as per respective scheme.
D) On-road price of the vehicle.
The permissible loan amount will be the lowest of A), C) and D).
Repayment PeriodA maximum of 7 years
What are the documents required?i) As per respective Car Loan Schemes
ii) The equitable mortgage of the Housing Loan will be extended to cover the Car Loan for the loan amount above Rs 5 lakhs.
iii) In case of car loans upto Rs 5 lakhs, a letter from the borrower authorizing the Bank to exercise lien on title deeds and to retain the title deeds till the car loan is completely discharged/repaid with interest and other charges.

State Bank of India Car Loan – FAQs

1. What types of four wheelers can be purchased using State Bank of India’s car loan?

The types of four wheelers that can be purchased using SBI car loans are new passenger cars, Multi Utility Vehicles (MUVs) and SUVs.

2. What is the tenure for a car loan of SBI Car Loan?

State Bank of India offers car loans for 84 months, which is the longest tenure offered by any Indian Bank for Car Loan. It is due to the longest tenure for a car loan that State bank of India is a preferred choice for loan borrowers.

3. What is the Car Loan Disbursement conditions set by the State Bank of India?

State Bank of India disburses car loans only on the following conditions:

  • Loan amount will be credited to the account of supplier/dealer through online route
  • All necessary statutory compliances are in place

4. What are the processing fees or other charges deducted by State Bank of India on car loan?

The processing fee for State Bank of India car loans is charged as specified below:

  • When loans are sanctioned: 0.51% of the loan amount subject to Minimum of Rs. 1020 and maximum of Rs. 10, 200.
  • If loan application is rejected: SBI retains 25% of processing fee, in case application is rejected after completion of pre-sanction survey.  Maximum limit is Rs 2550 and the minimum amount is Rs. 510.

State Bank of India does not charge a car loan pre-payment penalty.

5. Does State Bank of India offer the option of life insurance along with the car loan?

Yes, if an applicant applied for any SBI car loan scheme, he is offered to take the life insurance plan by SBI Life Insurance Company Ltd. at little to no extra cost.

6. Who can be a guarantor under SBI NRI Car Loan Scheme?

To stand guarantee for the loan, a guarantor has to be Indian Resident, and should be a relative to the NRI, such as:

  • Spouse
  • Father
  • Mother (including step-mother)
  • Son (including step-son)
  • Son's Wife
  • Daughter (including step-daughter)
  • Daughter's Husband
  • Brother's wife
  • Sister (including step-sister)
  • Sister's husband
  • Sister (including step-sister) of the spouse
  • Brother (including step-brother) of the spouse

A guarantor can be any individual such as:

  • Agriculturist
  • Professional
  • Self-employed person
  • Business man
  • Student
  • Parent of an NRI, who is receiving inward remittance or pension at regular intervals
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