SBI Car Loan Interest Rate: Check Eligibility, EMI, Documents, Apply Online

SBI Car Loan Interest Rate: After recent mergers, the State Bank of India (SBI), the largest lender in India and the 43rd largest bank in the world, has a 22 percent market share in the car financing industry. SBI has a customer base of 45 million people and a total asset value of INR 37 lakh crore. SBI is the perfect alternative if you need to receive the key to your dream car because it has a sizable branch network with over 22,000 locations and a 62,617 ATM network.

For a maximum of seven years, State Bank Of India Car Loans scheme provides financing for purchasing passenger automobiles, sports utility vehicles (SUVs), and multi-utility vehicles (MUVs).

SBI Car Loan Interest Rate

SBI used car loan interest rates begin at 9.45 percent, while SBI’s new car loan interest rates begin at 7.65 percent. These loans have one of India’s most acceptable vehicle loan rates and a floating rate. Workplace, loan size, and term all affect the interest rate.

However, vehicles older than three months are not eligible for Car Loan financing. Used autos must be returned within eight years of the 4-wheeler’s initial purchase date. However, to ensure that you may obtain the loan to purchase the specific vehicle, the automobile must not be older than five years. The bank’s loan rates for new automobiles range from 7.20 percent to 7.90 percent annually, while those for used cars range from 9.25 percent to 12.75 percent annually.

car loan

Key Features of SBI Car Loan

  • Competitive interest rates on EMIs and auto loans
  • 7-year repayment period
  • Offers to finance based on the on-road price
  • Based on the Daily Reducing Balance, interest is calculated.
  • No EMI in advance
  • State Bank Of India offers an optional life insurance policy.
  • NO processing fees on any auto loan
  • Up to 85% of the On-Road Price is eligible for high eligibility.
  • Prepayment fees, foreclosure fees, and advance EMIs are not applicable.

SBI Car Loan Highlights

ParticularsNew Car Loan Interest RatesUsed Car Loan Interest Rates
Processing Fee0.20 % Minimum: 500; maximum: 10,000maximum of 5,000 at 0.20 %
Loan Tenureupto 7 yearsupto 5 years
Minimum EMIRs. 1541 per lakhRs. 2011 per lakh
Amount Of LoanUpto 85% of on-road priceUpto 85% of on-road price
Prepayment ChargesNil2%

Fees & Charges For SBI Car Loans

ChargesLoan Scheme
Processing Charges0.40 % of the loan amount + GST for a new car. GST added to a minimum of Rs. 1000. No more than Rs. 7,500 plus GST.
CPO vehicles: 1.25 percent of the loan balance plus GST. at minimum Rs. 3,750 including GST. No more than Rs. 10,000 plus GST.
FinancingYou might get up to 90% of the car’s “On-Road Price”

Who Qualifies For SBI Car Loan?

SBI car loan applications are accepted by salaried employees, independent contractors, partnership businesses, and even farmers. The State Bank Of India auto loan is available for both new and used vehicles, including those that fall under passenger cars, multi-utility vehicles (MUVs), sports utility vehicles (SUVs), and others.

The following requirements must be met for applicants to be eligible for an SBI New or Used Car Loan:

  • The applicant/person must be between the ages of 21 and 67.
  • The candidate must either be employed by the Central or State Government, be a professional or self-employed person, or be involved in agriculture and related activities.

Check this also: Shriram Personal Loan

Car Loan Interest Rate SBI

Following are the factors that affect the interest rate on SBI Car Loans:

  • Amount Of Loan: Generally, banks provide cheaper interest rates for larger loans. SBI offers eighty-five percent of your car’s on-road pricing.
  • Your Salary: Loans with reduced interest rates are available to people with higher salaries—the SBI car loans interest rates change depending on your net monthly income.
  • Employer Type: The borrower’s employer category will have a significant impact on their interest rates to them. The classifications of employees at which State Bank Of India offers automobile loans are listed by companies. Consequently, a higher company category results in a lower SBI auto loan rate.
  • Relationship with the Bank: SBI provides special rates, offers, and fees to the bank’s current account holders. Low auto loan interest rates are available to those who previously managed their finances and made all of their payments on time.
  • Loan Tenure: Vehicle loans from SBI have a longer 7-year repayment term.
  • Repayment Capacity: SBI evaluates the borrower’s ability to repay the loan before granting it. Because CIBIL has all the information on prior loans taken and their repayments, the bank uses it to confirm the customer’s ability to repay through this loan. CIBIL also provides credit card bill payment information.
  • Income To Debt Ratio: One of the main criteria lenders consider when setting the interest rate is the income-to-debt ratio. It serves as a gauge for the amount of money you owe to various organizations. A low income-to-debt ratio is always advisable because it indicates your ability to make on-time, monthly EMI payments.
  • Market turbulence: Interest rates can fluctuate along with the state of the market. The importance of inflation in setting interest rates cannot be overstated. Rates may rise in response to an increase in the rate of inflation, and they may fall in response to a decrease in the rate. Other market situations may also impact the interest rates the lender occasionally offers. Customers should, therefore, fully understand the state of the market before choosing a car loan.
  • Age of the Vehicle: When you take out a car loanscheme, the vehicle being financed essentially serves as collateral for the duration of the loan. If you miss an EMI payment, the bank may seize your car to cover the unpaid debt. This is why banks and lenders take the type and age of the car loan scheme into account when calculating the interest rate.

Documents Requirements For An SBI Car Loan

Salary Employees

  • Filled loan application
  • 2 Passport-Size Photographs
  • Income Tax PAN Copies
  • Identity Verification Documents: PAN, Aadhaar, Passport, Driving License
  • Quotation Of the car
  • Residential address documentation must include leave, license, registered rent agreement, utility bill (up to three months old), and passport. Income documentation must consist of:
  • A three-month pay stub.
  • Two years of Form 16.
  • Three months of bank statements that show salary credit and any EMI debit.
  • Vehicle registration and auto insurance

Self-Employed

  • Filled loan application
  • Two copies of the income tax PAN 
  • Identity Verification Documents: PAN, Aadhaar, Passport, Driving License
  • Quotation of a car
  • Residential address documentation must include leave, license, registered rent agreement, utility bill (up to three months old), and passport. Income documentation must consist of:
  • A three-month pay stub.
  • Two years of Form 16.
  • Three months of bank statements that show salary credit and any EMI debit.
  • Vehicle registration and auto insurance.

sbi car loan

How Much Of A Loan Can You Get To Buy Your Dream 4-Wheeler?

For new autos, State Bank Of India auto lending program offers loans up to 90% of the on-road price. The ex-showroom price plus registration fees, road tax, insurance, and accessories, if any, make up the on-road price. For used autos, the bank can provide funding in the amount of 80% of the worth. So, keep these facts in mind while you bargain with the auto dealer to get the best possible offer.

Check this also: BOB Personal Loan Interest Rate

How To Improve Your Chances Of Getting An SBI Car Loan

The following are some methods you can use to improve your eligibility for an SBI Car Loans emi:

  • Have a high credit score: Maintaining a high credit score will increase your eligibility for an State Bank Of India car loan. It is always advised to keep your credit score at or above 750 because it conveys to lenders that you can repay the loan in full and on time.
  • Shorter-term: When taking out a car loan, you are always advised to choose a shorter term. A shorter-term also entails a lower interest charge on the borrowed amount. If you choose a shorter repayment period, your loan is more likely to be authorized because you will be required to return the loan’s principal faster.
  • It is simpler for a bank to approve your loan if you apply for a smaller loan amount. This indicates that not only will there be a lesser rate of interest applied to the loan amount but also that the bank is more comfortable approving your request for a car loan scheme due to the small loan amount.
  • Keep your debt-to-income ratio low. Before approving a car loanscheme, the bank looks at your debt-to-income balance. Your chances of getting a car loan scheme at a cheaper interest rate increase if there is a big difference between your income and expenses.

Car Loan Programs Offered By SBI

The following is a list of the vehicle loan programs offered by SBI:

  • SBI New Car Loan Scheme: This program is appropriate for people looking to buy a brand-new vehicle. The applicant is also given the option of an optional SBI Life Insurance Cover, and the repayment period might last up to 84 months.
  • Used Car Loan Scheme: The Certified Pre-Owned Car Loan Program is for anyone who wants to buy a used car loan scheme for personal use. The minimum and maximum loan amounts are, respectively, Rs. 3 lakh and Rs. 10 lakh. Either 5 or 8 years less than the car’s age may be used as the repayment period.
  • SBI Loyalty Car Scheme: Under the SBI Loyalty Car Loan Scheme, a loan up to the total on-road cost of the vehicle may be made available. The minimum income requirement for applicants under this program is Rs. 2 lakh, and the repayment period is 7 years.
  • The SBI Assured Car Loan Scheme is available to customers who have opened fixed deposit accounts in State Bank Of India branches. Depending on the loan amount, there were three to seven years between payments. The specified deposit for the vehicle’s on-road price is the whole margin under this plan. One can get a loan for as little as Rs. 2 lakh.
  • Businesspeople, farmers, and self-employed individuals covered by the “Tatkal Tractor Scheme” who are involved in activities that generate money but lack documentation for such activities may apply for the SBI car loan scheme. This program allows for a maximum loan amount of Rs. 4 lakh and a maximum repayment period of 5 years. A loan of up to 75% of the vehicle’s on-road cost may be available.

SBI Car Loan Application Form

Due to the bank’s expanding domestic and international reach, applying for an SBI car loans scheme is simple and pleasant for prospective borrowers. To apply for a car loan, you can do it online or in one of the manyState Bank Of India branches. The most practical choice is to go to the bank’s official website and select the section devoted to vehicle loans.

car loan application form

Click “Apply Now Online” as soon as the page for a car loan scheme. The page with a default check mark next to your relationship with the bank will then be directed to you if you get along well with the lender. Then, choose the appropriate option and provide your contact information. As soon as you do this, a form for a car loan scheme will appear, requesting you to provide the necessary information and documentation so that the bank can handle the rest; however if you do not already have a relationship with SBI. Then you must select “No” to be taken to the application form page, where you must proceed as usual.

Now SBI will examine your loan application. If you pass the inquiry, the bank will only grant a loan after carefully reviewing your identity, income, and address information.

Status Of SBI Car Loan Application

By going to the State Bank Of India website, you can check your loan application status online. You must input your LOS Application ID and birthdate and double-check the alphanumeric number displayed on the screen. If you can’t recall your LOS Application ID, you must look it up on the loan receipt. You will see the status of your vehicle loan application after inputting these details and pressing the submit button. Visit the SBI branch where you submitted your loan application to find out the status.

SBI Car Loan EMI Calculator

You may want to know how much you will pay toward the monthly loan before applying for a car loan emi calculator with State Bank Of India. This is referred to as EMIs, or equivalent monthly payments, providing a simple method of paying off your auto loan. You can better plan your monthly costs by figuring out the EMI.

Using the formula presented below, you may determine your car loan’s EMI:

E = P*r*[(1+r) n/((1+r) n-1)]

E stands for the monthly interest payment, P stands for the loan’s principal, r stands for the interest rate, and n stands for the loan’s term.

By entering the loan amount, interest rate, payback period, processing fee, etc., into the EMI Calculator tool, you can also calculate the State Bank Of India car loans emi calculator EMI. The calculator will compute the EMI and show it to you.

How To Apply For SBI Car Loan

Applying using the SBI bank’s Official Website: To apply for your chosen vehicle loan, go to SBI’s official website. You must upload the required documentation, and as soon as the bank confirms that all of your submissions are accurate, the loan amount will be quickly transferred to your bank account.

  • The procedure of the State Bank of India Temporary ban
  • The Annexure Form I or II may be downloaded from the SBI website.
  • Add the Term loan or Account number to Annexure I.
  • Put your signature over the branch name and mention it.
  • The signature of the second applicant is required if the loan is co-borrowed.
  • Without leaving the page, you can send the form to the email address listed in Annexure-II.
  • Suppose the customer uses SBI’s Standing Instruction service for the transaction. They can go to their local SBI bank and hand-deliver an application.

Customer Care For SBI Car Loan

There’s a chance you might have questions about an SBI vehicle loan at SBI. If this relates to you, a phone call to 1800 425 3800 will solve all of your issues and give you a successful loan experience with SBI. Talking to the customer service representatives on the above line will help you find answers to all of your questions, whether they relate to the status of your loan application, loan distribution, EMI payments, or information about your interest expenses.

FAQ’S Regarding SBI Car Loan

SBI Car Loans finance which kinds of automobiles?

All new automobile kinds are financed via SBI auto loans. Financing is offered for used or older automobiles no older than five years.

What is the SBI car loan interest rates?

SBI used car loan interest rates begin at 9.45 percent, while SBI’s new car loan interest rates begin at 7.65 percent. These loans have one of India’s most acceptable vehicle loan rates and a floating rate. Workplace, loan size, and term all affect the interest rate.

What is the maximum loan term for an SBI car loan?

You have a flexible 7-year repayment period for your SBI auto loan.

How can I lower the interest rate on my SBI vehicle loan?

The methods you can take to reduce your auto loan’s EMI are listed below.
Start by negotiating the cost of the car.
Observe for NBFCs that are affiliated with automakers.
Talk to the lender about a deal.
Large down payments can reduce EMIs.
Increase the term.
Repay your loan early.
Choose a lender who charges a minimal or no processing fee.

Is the interest rate on an SBI car loan fixed or variable?

“State Bank of India offers automobile loans at fixed interest rates, although most PSU banks offer them at floating interest rates.