SBI is one of the largest banks in India, offering a range of financial products and services. With their competitive interest rates, flexible repayment options, and easy documentation, car loans offered by the SBI are a popular choice for those looking to purchase a new or used car.
SBI offers a range of car loans, including New Car Loan, Certified Preowned Car Loan, Loyalty Car Loan for their existing home loan borrowers, Assured Car Loan for term deposit customers, and Green Car Loan for electric cars.
Some of the key features and benefits of SBI car loans include the following:
Low interest rates: SBI offers competitive interest rates on car loans starting from 8.85%, making it an affordable option for customers.
Flexible repayment options: Customers can choose a repayment tenure of up to 7 years (84 months), allowing them to choose a repayment plan that fits their budget and financial goals.
No pre-payment charges: SBI does not charge any pre-payment penalties, meaning customers can make partial or full pre-payments without additional charges.
Minimal documentation: The documentation required for SBI car loans is minimal, making it a hassle-free process for customers.
High loan-to-value ratio: SBI offers to finance up to 90% of the car's ex-showroom price, making it easier for customers to purchase their desired car without worrying about arranging the entire amount upfront.
The interest rates for the SBI Car Loan depend on various factors, such as:
Market fluctuations: Interest rates are influenced by market dynamics, including inflation rates, economic growth, etc.
Age of the vehicle: SBI may charge a higher interest rate for used cars than for new ones because of the higher risk involved with older vehicles.
Loan amount and tenure: The interest rate on a car loan may vary depending on the amount of the loan and the tenure. Generally, a longer loan tenure will attract higher interest rates.
Individual's credit score: The interest rate on a car loan also depends on the borrower's credit score. A high credit score may lead to lower interest rates.
Income and employment stability: SBI may also consider the borrower's income and employment stability before deciding on the interest rate. Stable employment and higher income may result in a lower interest rate.
To apply for an SBI Car Loan, follow these simple steps:
Visit the nearest SBI branch or apply online on the SBI website.
Note: The SBI website has an 'SBI Loans' tab on the menu bar at the top of the homepage. From the drop-down menu under this tab, select 'Vehicle Loans'. This will open the Vehicle Loans page. You can browse this page to learn more about the types of car loans offered by the bank before visiting the branch office, as well as to apply for the loans online if you so prefer.
Since there are a few loan options to choose from, select the one you want based on your requirements.
Fill out the application form and provide the required documents as outlined with each loan.
Wait for loan approval and disbursement
To be eligible for an SBI Car Loan, you must:
Be an Indian citizen or resident
Be between the ages of 21-65
Have a minimum annual income of ₹3 lakh
Meet SBI's credit score requirements
The following documents are required to apply for an SBI Car Loan:
Identity proof (Aadhaar card, PAN card, Voter ID)
Address proof (Aadhaar card, driving license, passport, utility bills)
Income proof (salary slips, bank statements, income tax returns)
Vehicle-related documents (invoice, insurance, registration)
Please note that as SBI offers a range of car loans, the eligibility criteria and the documents required will vary depending on the type of car loan you are applying for. Make sure to check the SBI website for specifics on eligibility and documentation for the car loan that you are specifically interested in.
Let's weigh the pros and cons before taking out a car loan.
Some advantages of taking out an SBI Car Loan include the following:
Helps you purchase your dream car without affecting your savings
Easy repayment options with no pre-payment charges
Competitive interest rates
Helps you to build your credit score
Some disadvantages of taking out an SBI Auto Loan include the following:
You will have to pay interest on the loan amount, which increases the overall cost of the car
If you default on payments, your credit score will be affected
You will have to budget for monthly EMI payments
If you take a long-term loan to keep the EMIs low, you will end up paying more interest in the long run
SBI bank car loan provides up to 90% of the cars on-road price as the loan amount.
The tenure of an SBI bank car loan ranges from 12 months to 84 months. It depends on the type of car loan you want.
You can prepay your SBI auto loan without any prepayment charges.
The minimum age limit to avail of an SBI car finance is 21 years, and the maximum is 65 years.
You can apply for SBI bank car loan online through the SBI website or mobile app.
The processing fee for SBI car finance ranges from 0.25% to 1.25% of the loan amount + GST, with a minimum as low as ₹500 and a maximum of ₹10,000 depending on the type of car loan.
A guarantor may be required for some types of SBI Car Loans.
The interest rate for the SBI Car Loan starts from 7.95% p.a. and varies based on the loan amount, tenure, and other factors.
Yes, you can transfer your existing car loan to SBI at attractive interest rates and flexible repayment options.
If you default on your SBI Car Loan EMI payment, a penalty will be charged, negatively impacting your credit score.
The documents required to apply for an SBI Car Loan include identity proof, address proof, income proof, and car-related documents.
Yes, the SBI Car Loan is available for both new and used cars, subject to certain conditions.