SBI’s New Car Loan Scheme: Check Interest Rates, Charges, Maximum Amount Offered

SBI’s New Car Loan Scheme: Check Interest Rates, Charges, Maximum Amount Offered

State Bank Of India (SBI) offers new car loan scheme with low interest rates, zero foreclosure charges, minimal paperwork and quick disbursements, mentioned country’s largest lender on its official twitter handle. Under SBI’s new car loan scheme, the bank offers up to 90 per cent loan on the on-road price, longest repayment tenure, lowest EMI (Equated Monthly Instalment) and no pre-payment penalty, SBI further added. On-road price is the price the customer actually pays for the car and includes registration, insurance and extended warranty or total service package or annual maintenance contract or cost of accessories, according to SBI’s portal

Key things to know about SBI’s new car loan scheme:

1.    SBI’s new car loan scheme is available for purchase of new passenger cars, Multi Utility Vehicles (MUVs) and Sport Utility Vehicle (SUVs).

2.    To avail an SBI new car loan, the borrower should be an individual aged 21 to 65 years, belonging to one of the following 3 categories:

a)    A regular employee of state / central government, public sector undertaking, private company or a reputed establishment where the net annual income of applicant and/or co-applicant if any, together should be a minimum of Rs. 2,50,000. The maximum loan amount that can be given in this case is 48 times of the net monthly income.

b)    Professionals, self-employed, businessmen, proprietary/partnership firms who are income tax assesses where the net profit or gross taxable income of the applicant should be Rs. 4,00,000 per annum (income of co-applicant can be clubbed together). The maximum loan amount that can be given in such a case is 4 times of net profit or gross taxable income as per ITR (Income Tax rules) after adding back depreciation and repayment of all existing loans.

c)    Person engaged in agricultural and allied activities where the net annual income of applicant and/or co applicant together should be a minimum of Rs. 4,00,000.  The maximum loan that can be given in such a case is 3 times of net annual income.

3.    SBI offers 90 per cent finances of on-road price of the vehicle in case the net annual income of the applicant is up to Rs. 10 lakh or more than 10 lakh, said SBI on its official portal.

4.    The repayment period of SBI’s new car loan lasts up to 84 months.

5.    Overdraft facility and an optional SBI Life Insurance cover are also available.

6.    With effect from March 1, 2018, SBI charges a rate of interest of 8.9 per cent to 9.4 per cent on auto loans. These loans include car loans, NRI car loan and SME retail car loans (excluding taxi, transport operators and fleet segments), according to the SBI website. Among the offerings under its auto loan products, SBI charges a rate of interest of 17.40 per cent on two-wheelers loans. This rate is 9.25 per cent above the 1-year MCLR of 8.15 per cent, according to the SBI website. SBI charges a rate of interest of 11.8 per cent on loan to own a super bike. This rate is 3.65 per cent above the 1-year MCLR of 8.15 per cent, according to the SBI website.