SBI Car Loan – Loans for professionals
SBI Car Loan Fees and Charges
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SBI Car Loan Eligibility
To be eligible for an SBI New or Used Car Loan, applicants must adhere to the below-mentioned car loan eligibility criteria:
- Applicant/individual must be aged between 21 years and 65 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.
Factors Affecting SBI Car Loan Interest Rates
SBI offers high-value car loans to its customers with the interest rates offered for new and used SBI car loans ranging between 8.50% and 11.95%. The SBI Car Loan interest rate that you are eligible for will be dependent on various factors, some of which have been mentioned below:
- Income-to-Debt Ratio – This is one of the primary factors that lenders take into consideration while determining the rate of interest. It basically is an indicator of the amount of money you owe to different entities. It is always recommended to have a low income-to-debt ratio as it denotes your capacity to make EMI payments on a monthly basis, without any delays.
- Market Fluctuations – Interest rates tend to change along with the performance of the market. Inflation also plays a major part in determining the interest rates. If the inflation rate goes up, then rates might increase and if the inflation rate goes down, then car loan interest rates might decrease. Other market conditions might also affect interest rates offered by the lender from time to time. Hence, customers should be completely aware of the prevailing market conditions when they opt for a car loan.
- Vehicle’s Age – When you borrow a car loan, the vehicle being financed basically acts as a collateral for the entire tenure of the loan. In case you default on the payment of the EMI, the bank can hold onto your vehicle, in order to balance out the outstanding dues. This is the reason why lenders and banks take into consideration the model and age of the vehicle while determining the rate of interest.
- Applicant’s income and occupation – In addition to the credit score of the applicant, his/her income and occupation type are also taken into consideration while determining the rate of interest. Banks typically prefer applicants that have a steady source of income as it indicates their capacity to make repayments without defaults.
- Repayment tenure: The repayment tenure that is the time given to the applicant to repay their loan amount will also determine the interest rate levied on their loan amount. Longer the repayment tenure, higher will be the interest rate charged on the loan amount.
- Relationship with your bank: The applicant’s relationship with the bank will also determine the rate of interest levied on the bank. It is always recommended that the applicant avails a car loan from the bank where he/she holds a bank account. The bank finds it easier to provide loan to a person who has been a customer of the bank for a very long time. Hence, there is a very good chance that the applicant will get a car loan at a lower interest rate.
Car Loan Schemes Provided by SBI
The list of car loan schemes provided by SBI is given below:
- SBI New Car Loan Scheme: This scheme is suitable for those who wish to purchase a new car for themselves. The repayment tenure is up to 84 months and the applicant is also offered an optional SBI Life Insurance Cover.
- Certified Pre-owed Car Loan Scheme: This scheme is for those who wish to purchase a pre-owned car for themselves. The minimum loan that one can avail is Rs.3 lakh and the maximum loan amount being Rs.10 lakh. The repayment tenure can be either 5 years, or 8 years minus the age of the vehicle.
- SBI Loyalty Car Loan Scheme: Customers who have availed a home loan from SBI have the option of availing this scheme and purchase a car of their choice. The repayment tenure under this scheme is 7 years, and the minimum income criteria the applicant will have to fulfil is Rs.2 lakh.
- SBI Assured Car Loan Scheme: If a customer has opened a fixed deposit account in a branch of SBI, then he/she can avail this car loan scheme. The repayment tenure ranged between 3 years and 7 years depending on the loan amount. The margin under this scheme is 100% of the fixed deposit or the on-road price of the vehicle. The minimum loan amount one can avail is Rs.2 lakh.
- SBI Car Loan Lite Scheme: Businessmen, agriculturists, and self-employed people under ‘Tatkal Tractor Scheme’ who are engaged in business which provides them income but have no proof to show for the same can apply for this scheme. The maximum loan amount that one can avail under this scheme is Rs.4 lakh, and the maximum repayment tenure is 5 years.