In today’s fast-moving world, owning a car is the most important asset for everyone. Getting a car gives you the freedom to comment anywhere and anytime. Because in these busy days of everyone’s life, cars are essential for saving time. But there are situations where you feel like you need to buy a vehicle but cannot due to financial constraints. Taking out a car loan is the best solution for this.So, SBI Bank is the best in this area.
Whenever you wish to buy a new car, you can go ahead and apply for a car loan with SBI Bank. The most crucial benefit of SBI bank car loans is that they offer loans to their customers on both new and used cars. so that it becomes easy for the customers to decide upon their budget as well.
The difference between a used and a new car loan
SBI bank allows customers to buy either a new or a used car. So, depending on the condition of the vehicle, the bank further decides upon the proceedings of the car loan:
When you apply for an SBI Bank Used Car Loan, the loan amount will be 3 lakhs and onwards. The applicable loan amounts to 85% of the used car’s valuation. The loan tenure will be a maximum of 5 years. And most importantly, in the case of used vehicles, SBI Bank also takes the responsibility of transferring the vehicle’s documents from the old owner to the new owner’s name.
When you apply for an SBI Bank New Car Loan, the loan amount will be 2 LPA and onwards. The applicable loan amounts to up to 90% of the on-road price of the new car. The loan tenure will be a maximum of 7 years.
SBI Car Loan Highlights
Below are some of the important features of the SBI Car Loan:
SBI finances the car at the “on-road price” of the vehicle and includes insurance, registration, and the extended warranty.
There are no foreclosure charges.
No advance EMIs are required.
They also offer SBI life insurance coverage for the car if the customer needs it.
There is a zero processing fee for the new vehicles and a 0.51% processing fee for the used cars.
The loan repayment tenure is 7 years.
The loan interest rate is calculated on a daily decreasing balance amount.
Factors that affect the SBI Bank Car Loan EMI
Loan amount: this is the amount that you borrow from the bank, so the higher the loan amount you need, the higher your monthly EMI will be.
Interest rate: interest rates vary on the condition of the car, so the higher the interest rate, the higher your monthly EMI will be. The lowest interest rate that SBI Bank offers for its car loans is 7.65%.
Loan tenure is the time frame in which you pay the loan amount back to the bank in EMIs. So, the longer the loan tenure, the lower your monthly EMI will be. The maximum loan tenure SBI Bank allows is 7 years.
SBI Car Loan Calculator
With the below formula, the car loan’s monthly EMI is calculated.
In this, P is the principal loan amount for which you have applied.
R is the rate of interest that is being charged by SBI Bank every month.
N is the loan repayment tenure in months.
E is the monthly EMI that you pay.
Eligibility for SBI bank Car loan
To be eligible for the SBI Bank New or Used Car Loan, applicants must adhere to the below eligibility criteria:
The age of the loan applicant should be between 21 and 67 years old.
The loan applicant must be either a salaried professional, a central or state government employee, a self-employed individual, or an individual involved in agricultural activities.
Documents required for SBI bank car loans
The loan applicant should submit the following documents while applying for the car loan:
Salaried professionals
Application form completed
Two passport-size photographs
Bank statements for the last 6 months
Address proof-Adhaar card/passport
Pan card or driver’s license as identification
Income proof-salary slips of the last 6 months and form 16 of the last 2 years
Income tax returns for the previous two years
Nonsalaried professionals or self-employed individuals
Application form completed
Two passport-size photographs
Bank statements for the last 6 months
Address proof-Adhaar card/passport
Pan card or driver’s license as identification
Income tax returns for the previous two years
Income proof
The audited balance sheet of the business
Partnership copy
A sales tax certificate
Individuals engaged in agricultural activities
completed application form
Two passport-size photographs
Bank statements for the last 6 months
Address proof-Adhaar card/passport
Pan card or driver’s license as identification
Details of the agricultural activity and its proof
FAQs
The lowest car loan interest rate SBI Bank offers is 7.65%, and that is Rs. 1591 per lakh of the loan amount.
Yes, after 3 months of applying for the loan, you can apply for foreclosure without any penalty charges.
Yes, you can add, but that should be either your parents or your spouse.
Insurance and extended warranties
Registration charges
A complete car service package
An annual maintenance contract
The cost of the accessories coming with the car
No, without income-proof documents, SBI bank does not offer any loans.
No, once the agreement is signed, there cannot be any changes made to the monthly EMI amount.
Yes, negotiation is possible, but that depends upon the make and model of the car you are applying for the loan.
In the event of delayed payments in the monthly EMI, SBI Bank charges a 3% compound on the monthly EMI amount.
Once the loan tenure is completed and the loan amount is paid off completely, within 15 working days, SBI bank will issue the NOC documents to you.