SBI car Loan scheme: Lowest interest rates, longest repayment tenure, eligibility criteria, other key details

New Delhi: State Bank of India (SBI), country’s largest lender, offers car loan scheme with lowest interest rates, Equated Monthly Installment (EMI) and longest repayment tenure of up to seven years with optional SBI life cover. This can be availed for purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs.

According to the SBI website, the bank charges an interest rate between 9.30 per cent to 9.80 per cent on car loans. Depending on the profile of the borrower, interest rates vary.

Key Benefits-

1. It gives customers a facility of financing up to 90 per cent of ‘on-road price’. This include registration, insurance and extended warranty or total service package or annual maintenance contract or cost of accessories.

2. The interest in SBI car loan is calculated on daily reducing balance basis.

3. There are no pre-payment penalty or foreclosure charges and advance EMI.

4. It requires minimal paperwork and quick disbursement of the car loan.

Required Documents-

Along with the completed application form, the applicant would be required to submit documents mentioned below-

Copy of any one- Passport/ PAN Card/ Voters ID card/ Driving License etc. can be used as Proof of Identity. For Address Proof copy of anyone- Ration card/Driving License/Voters ID card/Passport /Telephone Bill/ Electricity bill/Life Insurance policy can be used.

What is the eligibility criteria to avail SBI car loan scheme-
Any individual of age between 21 and 65 years and belonging to one of the following three categories can avail SBI Car Loan scheme-

1. Any Regular employee of the state or central government, public sector undertaking, private company or a reputed establishment with a net annual income of the applicant and/or co-applicant if any, together should be a minimum of Rs 2.50 lakh. The maximum loan amount that can be given is 48 times the net monthly income.

2. Professionals, self-employed, businessmen, proprietary or partnership firms who are income tax assesses with net profit or gross taxable income of Rs 3 lakh per annum (income of the co-applicant can be clubbed together). In this case, the maximum loan amount that can be given is four times net profit or gross taxable income as per Income Tax Return (ITR) after adding back depreciation and repayment of all the existing loans.

3. A person engaged in agricultural and allied activities with a net annual income of the applicant and/or co-applicant together should be a minimum of Rs 4 lakh. Here the maximum amount of loan that can be given is three times of net annual income.