Last Updated on 9 months by Anoob P T
SBI Car Loan is one of the best car loans in India.
Being one of the largest bank in India (and the world), their car loan process is simple, straightforward and helpful for average Indians.
When I first bought my car, I had taken a loan from a bank with the help of some gold as collateral.
If you are a salaried professional, you can directly opt for a car loan from SBI and in most cases, your loan amount will be approved.
As of now, I try to avoid loans as I have left my full time job and pursuing different channels to make money online.
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Types of SBI Car Loan
The State Bank of India (SBI) offers a lot of car loan schemes for its customers. You can avail best deals for financing your car with SBI.
They have lowest interest rates, lowest EMI, minimal paperwork and quick disbursement.
The car loan schemes provided by SBI are SBI New Car Loan scheme, Certified Pre-Owed Car Loan scheme, SBI Loyalty Car Loan scheme, SBI Assured Car Loan scheme and SBI Car Loan Lite Scheme.
These loan schemes include various categories from those who are purchasing a new car, a pre-owed car to the people who have business or agriculture and hence, do not have any income proof to show.
In addition, people who have availed home loans or fixed deposits in the bank have provisions to get a car loan.
SBI provides lowest interest rates and EMI as well as longest payment tenure of 7 years. It also offers financing on “On-road price” such as registration, insurance and extended warranty/total service package/Annual maintenance contract/cost of accessories.
There is no processing fee for new cars and only 0.51% for used cars. SBI also gives optional insurance facilities and there is no need for advance EMI or pre-payment penalty.
SBI Car Loan Interest Rates
State Bank of India offers car loans to its customers with interest rates ranging between 8% and 11.95% and tenure of up to 7 years.
For SBI Car Loan, NRI Car Loan, Combo Loan Scheme, Assured Car Loan Scheme and SME Retail Car Loan Scheme, the interest rates range from 8% to 8.7%.
In the Loyalty Car Loan scheme, the interest rates range from 7.95% to 10.75%. for SBI Car Loan Lite Scheme, the interest rates depend on the CIBIL score.
If the score is greater than or equal to 750, then the interest rate is 10.45% p.a. If the score is less than 749, then the interest rate is 11.45% p.a.
Eligibility to get SBI Car Loan
You are eligible for SBI Car Loan if you are aged between 21 and 67 years, and belong to any one of the three following categories:
- The regular employees of Central Public Sector Enterprises, people with Defense Salary package (DSP), Para Military salary package (PMSP) & Indian Coastal Guard Package (IGSP), and Customers and Short Commissioned Officers of various Defense establishments with a net annual income of minimum Rs. 3,00,000/-. The loan amount availed to people belonging to this category is 48 times of their Net Monthly Income.
- Professionals, Self-employed, Businessmen, proprietary/partnership firms and others who are income tax assesses and has a net profit or gross taxable income of Rs. 3,00,000/- p.a. (income of co-applicant can be clubbed together). The loan amount availed is 4 times Net Profit or Gross Taxable income as per ITR after adding back depreciation and repayment of all existing loans.
- Persons engaged in agriculture and allied activities with a Net Annual income of minimum of Rs. 4,00,000/- (applicant and co-applicant together). The loan amount availed is 3 times of Net Annual Income.
SBI Car Loan Documents Required
The documents required differ according to which category you belong to in the above list.
Documents Required for SBI Car Loan for Salaried Professional
- Statement of bank account for last 6 months.
- 2 passport size photographs
- Proof of Identity
- Address Proof
- Income Proof: Latest Salary Slip, Form 16
- I.T. Returns or Form 16 for the last 2 years.
- Proof of Identity – (Copy of any one) Passport/ PAN Card/ Voters ID card/ Driving License etc.
- Address Proof- (Copy of any one) Ration card/Driving License/Voters ID card/Passport /Telephone Bill/ Electricity bill/Life Insurance policy.
However, for SBI salary package customers with a minimum of 12 months as account holders, Form 16, ITR and bank statement of 6 months are waived off.
Documents Required for Non-Salaried/ Professional/Businessmen
- Statement of bank account for last 6 months.
- 2 passport size photographs
- Proof of Identity
- Address Proof
- Income Proof: ITR for last 2 years
- I.T. Returns or Form 16 for the last 2 years.
- Audited Balance sheet, P&L statement for 2 years, Shop & establishment act certificate / sales tax certificate / SSI registered certificate / copy of partnership.
Documents Required for person engaged in agricultural and allied activities
- Statement of bank account for last 6 months.
- 2 passport size photographs
- Proof of Identity
- Address Proof
- Direct agricultural activity (crop cultivation) showing cropping pattern or land holding with photograph. All land should be on free hold basis and ownership proof to be in the name of borrower.
- Allied agricultural activity (like Dairy, Poultry, Plantation/ Horticulture) given as a documentary proof of running of the activities to be provided.
