SBI (State Bank of India) is one of the leading banks in India that offers a wide range of financial products and services to its customers. The bank has recently launched a new car loan offering with competitive interest rates starting at 8.60% per annum.
Customers can get loans for up to 90% of the car's on-road price and enjoy flexible repayment options for up to 7 years. The bank also provides special schemes for women borrowers and existing SBI customers.
SBI's car loan scheme offers various features and characteristics that make it an attractive option for customers. Here are some of the salient features of the new car loan:
Lowest Interest Rates & EMI: SBI offers the lowest interest rates and EMI for car loans, making it a cost-effective option for borrowers.
Longest Repayment Tenure: The bank provides a repayment tenure of up to 7 years, allowing borrowers to choose a comfortable repayment period.
Financing on 'On-Road Price': The loan covers up to 90% of the on-road price, including registration and insurance costs, making it easier for customers to finance their car purchases.
Interest Calculated on Daily Reducing Balance: The interest on the loan is calculated on a daily reducing balance, which reduces the overall interest burden on the borrower.
No Prepayment or Foreclosure Charges: SBI does not charge any prepayment or foreclosure fees after 1 year, giving customers the flexibility to repay the loan at their convenience.
Optional SBI Life Insurance cover available: Customers can opt for an SBI Life Insurance cover to protect themselves and their families in case of unforeseen circumstances.
Flexi Pay Option: SBI offers a Flexi Pay option, allowing borrowers to choose between two repayment options in the first 6 months of the loan tenure.
The borrower can pay 50% of the regular EMI in the first 6 months, provided the tenure is at least 36 months.
Alternatively, they can choose to pay 50% of the regular EMI for the first 6 months and 75% of the regular EMI for the next 6 months if the tenure is at least 60 months.
SBI offers various car loan schemes with different interest rates. As of 19th April 2024, the interest rates for SBI car loans range from 8.65% to 9.65%. This rate is applicable to the SBI Car Loan, NRI Car Loan, and the Assured Car Loan Scheme. The Loyalty Car Loan Scheme also falls under the same interest rate range, but CIC-based rates are applicable.
The SBI Green Car Loan Scheme, designed specifically for electric cars, offers a lower interest rate range of 8.60% to 9.30%. However, the Certified Pre-owned Car Loan Scheme has a higher interest rate range of 11.25% to 14.75%, and CIC-based rates are applicable.
To apply for a new car loan from SBI, the minimum CIBIL score required is 650. The interest rates and minimum loan tenure for the car loan vary based on the customer's CIC score.
If the customer has a CIC score of 775 or above, the interest rate for a loan with a tenure of 3-5 years would be 8.65%, and for a loan with a tenure of above 5 years, it would be 8.75%.
For a customer with a CIC score of 650-699, the interest rate for a loan with a tenure of 3-5 years would be 9.55%, and for a loan with a tenure of above 5 years, it would be 9.65%.
If the customer's CIC score falls within the range of 101-200, the interest rate for a new car loan would be between 8.75% to 9.10%.
SBI Car Loans are one of the most popular options for customers looking to finance their car purchase. However, the interest rates offered by the bank can vary based on several factors. Here are some of the factors that can impact SBI Car Loan interest rates:
Income-to-Debt Ratio: Lenders consider this ratio to determine the applicant's capacity to make timely EMI payments. A low income-to-debt ratio indicates a good repayment capacity, which can result in a lower interest rate.
Market Fluctuations: Interest rates are influenced by market conditions such as inflation, economic growth, and global events. Customers should keep track of these changes to know how they can impact their car loan interest rates.
Vehicle's Age: The age and model of the car being financed act as collateral for the loan. The bank considers this while determining the interest rate, as it needs to protect its investment in case of default.
Applicant's income and occupation: Along with the credit score, the bank also considers the applicant's income and occupation to gauge their repayment capacity.
Repayment tenure: The repayment tenure also plays a role in determining the interest rate. Longer tenures can result in higher interest rates.
Relationship with the bank: The applicant's history with the bank can also influence the interest rate. Being a long-time customer with a good track record can result in a lower interest rate.
By considering these factors, customers can increase their chances of getting a favourable interest rate on their SBI Car Loan.
To be eligible for an SBI New or Used Car Loan, the applicant must meet the following criteria:
The applicant must be a citizen of India.
The applicant must be aged between 21 years and 67 years.
The applicant must be either a Central/State Government employee, a professional or self-employed individual, or an individual who is engaged in agricultural and allied activities.
The applicant must have a steady source of income.
The applicant must have a good credit score.
The applicant must have a valid driving licence.
The vehicle being financed should be for personal use only and not for commercial purposes.
To apply for an SBI Car Loan, you can visit the official website of the bank and upload the necessary documents. Once the bank verifies your documents and is satisfied with them, the loan amount will be disbursed to your bank account.
Alternatively, you can also dial 1800-11-2211 for more information and to apply through the SBI Contact Centre.
Another way to apply is to give a missed call on 7208933142 or send an SMS with the text CAR to 7208933145. A representative from the Contact Centre will promptly call you back and guide you through the application process.
Here are some tips for negotiating the best car loan interest rates with SBI:
Do Thorough Research: Before approaching the bank, do your research on the current market trends and the interest rates offered by other banks. This will give you a better idea of what kind of interest rates you should be aiming for.
Improve Your Credit Score: Having a good credit score is crucial when negotiating for lower interest rates. The better your credit score, the more negotiating power you have.
Opt for a Higher Down Payment: A higher down payment on the car can help you negotiate a lower interest rate as it reduces the risk for the bank.
Maintain Good Relationship with the Bank: If you have an existing relationship with SBI, such as a savings or current account, you may be able to negotiate a better interest rate.
Compare and Negotiate: Compare the interest rates offered by different banks and negotiate with your bank to match or beat the rate offered by their competitors.
Remember, the interest rate offered by SBI is ultimately dependent on various factors, including your creditworthiness, income, and repayment capacity.
Yes, you can opt for a lower EMI by choosing a longer repayment tenure, but this will increase the interest rate charged on the loan.
The repayment tenure for an SBI car loan can range from 12 months to 84 months (7 years), depending on the borrowers preference and eligibility.
The minimum loan amount for SBI Car Loan is Rs. 50,000, and the maximum loan amount is up to 90% of the cars on-road price.
Yes, having a good credit score can help you get a lower interest rate on your SBI Car Loan.
Yes, you can prepay your SBI Car Loan without any prepayment charges.
Yes, existing SBI customers can avail of a discount on the interest rate for SBI Car Loan.
Yes, SBI offers pre-approved car loans for eligible customers, which can save time and effort during the car buying process.
No, SBI car loans are generally unsecured, meaning that you do not need to provide any collateral or security against the loan. However, the car being purchased will act as a hypothecated asset until the loan is repaid.