Everything Know About SBI Car Loan & Reviews 2022

SBI Car Loan provides you with the best deals to help you get your dream car.

With the low SBI Car Loan Interest Rate, minimal paperwork, quick sanction, as well as low EMI amount, SBI car loan is an ideal package for everyone. 

There are plenty of aspects involved in an SBI car loan and as an applicant, you must keep each one of them in mind while applying for the loan. 

In this article, we are going to look at each one of these aspects in detail and help you get a thorough understanding of the SBI car loan, eligibility criteria, SBI Car Loan Prepayment charges, documents required, Car Loan Interest Rate SBI, and more. 

So without any further ado, let’s get started. 

Different types of SBI car loan schemes 

New Car Loan Scheme SBI 

This particular SBI car loan scheme is appropriate for those people who are planning to get a brand new car.

The repayment term for these loans can be up to 7 years or 84 months.

Moreover, the applicant will be provided with an optional Life Insurance Cover by SBI as well.

Certified Pre-Owned Car Loan SBI

The Certified Pre-Owned Car Loan Scheme is for all those people who are planning to get a pre-owned vehicle for themselves.

The minimum amount of SBI car loan that you can avail of is ₹3lakh while the maximum amount is ₹10 lakh.

The repayment term of the SBI car loan on this scheme can either be 5, or 8 years subtracting the total term of the car.

Loyalty Car Loan Scheme SBI

Under this policy, one can avail of the TOTAL on-road price rate of any vehicle.

The SBI Car Loan repayment term for this one is 7 years or 84 months.

However, the minimum salary requirements of the applicant must be at least ₹2 lakh.

Assured Car Loan Scheme SBI

If an individual has a fixed deposit or FD account in any branch of the State Bank of India, then they will be able to avail of this particular car loan program.

The repayment term for this SBI car loan ranges from 3 to 7 years based on your total loan amount.

The maximum limit of the car loan amount for this scheme is 100% of your FD for the prevailing on-road rate of the automobile.

The minimum amount must be ₹2 lakh.

Car Loan Lite Scheme SBI

Under SBI’s ‘Tatkal Tractor Scheme’, if any businessmen, agriculturists, or any self-employed individuals, who are involved in a business that helps them earn revenue but don’t have any proof for showing for it, can also apply for the SBI Car Loan Lite scheme. 

The maximum amount of car loan that the borrower will be able to avail of under this particular scheme is ₹4 lakh, and the car loan repayment term is up to 5 years. 

Borrowers will be able to avail of up to 75% of the car’s cost price under this program.

Green Car Loan SBI: For Electric Cars

The SBI car loan repayment term for this particular scheme is 3 to 8 years.

Accommodation of 20 basis points (bps) is applied on the SBI Bank Car Loan Interest Rate across the type of clients.

Financing is available up to a total of 90% of the complete on-road cost price of the car. 

Also read – SBI Home Loan

Major Features of SBI car loan

• Financing is available up to a total of 90% of the prevailing on-road cost price of your desired car.
• Longest SBI Car Loan repayment term available of 7 years.
• No Equated Monthly Installment or EMI to be deposited in advance.
• An optional Life insurance policy by SBI is also available with your car loan.
• SBI Bank Car Loan Interest Rate is computed based on the daily reducing balance system.
• Equated Monthly Installments, or EMI as well as Car Loan Interest Rate in SBI are incredibly low.
• Financing is available for both new as well as used cars, SUVs, and MUVs. 

How to apply for SBI Car Loan

Applying for an SBI Car Loan is an incredibly simple procedure by simply heading to the bank’s official website.

Here, you can choose the scheme that suits your needs the best. 

After that, you will need to submit the required documents, and as soon as the bank is going to verify your application and offer full approval for the same, the specified amount of the SBI car loan will be sanctioned as soon as possible. 

Make sure to check out the provided SBI Car Loan Rate of Interest and your monthly installment amount first. 

SBI Car Loan Interest Rate 2022

If there’s one thing that truly stands out for this bank, it’s SBI Car Loan Interest Rate 2022.

The current Car Loan SBI Interest Rate for both new as well as used vehicles ranges from 7.25% to 13.25%. 

Factors Affecting SBI Car Loan Rate of Interest

The Car Loan SBI Interest Rate that one is eligible for is going to be dependent on a variety of factors.

Some of these aspects affecting Car Loan Interest Rate SBI are as follows: 

• The ratio of Debt to Income: One of the primary aspects that the bank takes into account while evaluating the SBI Car Loan Interest Rate is the ratio of debt to income.
• It essentially indicates the exact sum that an applicant owes to numerous entities.
• A low ratio is considered to be a preferred mark as it signifies the capability of the individual to submit the due monthly installments on time and without any kind of delays. 
• Fluctuations in the Market: Car Loan Interest rate in SBI also tends to vary based on the prevailing performance of the banking market.
• Inflation in the economy also has a huge role to play in specifying the Car Loan Interest Rate SBI.

In case the rate of inflation rises, the Car Loan Interest Rate SBI is likely to heighten and in the case, it goes down, the interest rates will probably decrease. 

Other market circumstances can also influence your SBI car loan rate of interest.

Thus, applicants must stay fully attentive to the ongoing market situations when they are opting for an SBI car loan.

• Age of the Four-wheeler: When you are applying for an SBI car loan, the four-wheeler involved is essentially going to be the collateral during the complete repayment term of the car loan.
• In case you make any delays in your EMI installment, the SBI bank will have the option to hold onto this vehicle for balancing out your outstanding amount.
• That’s why the bank takes the model as well as the age of your vehicle into account while specifying your SBI bank car loan interest rate. 
• Salary and occupation of the Applicant: Apart from the applicant’s CIBIL score, the bank also takes the income as well as occupation type of the applicant into consideration while specifying your SBI bank car loan interest rate.
• Banks generally prefer the applicants who have a stable and reliable income source as it implies their ability to pay monthly installments without any defaults.
• Car loan Repayment term – The repayment term of your SBI car loan is the total period that is provided to the borrower for repaying their car loan amount to the bank.
• It also plays a key role in determining your SBI car loan interest rate that is going to be charged on your car loan amount.
• A longer repayment term is going to imply a higher interest rate to be charged on your car loan amount.
• Relationship with the SBI bank – The relationship of the borrower with the SBI bank is also going to play a role in determining their SBI car loan rate of interest to be levied. It is always a good idea to choose a bank with which you have a history of a good record.
• In case you have always been punctual and active with your SBI bank account, the bank will most likely offer you the car loan at a much lower rate of interest. 

SBI Car Loan Eligibility

To be able to avail of an SBI Car Loan (New as well as Used), applicants will have to rightfully meet all the SBI Car Loan Eligibility requirements. 

The following is the SBI Car Loan Eligibility Criteria 2022: 

1. The applicant must fall into the age group of 21-67. 
2. The applicant should either be an employee for the Central or State government, a self-employed individual or businessman, a professional, or an individual involved in agricultural or related business activities. 

Also read – HDFC Home Loan

How to Increase Your SBI Car Loan Eligibility

The following are a few ways through which you can easily boost your SBI Car Loan Eligibility to a great extent: 

• Having a decent CIBIL score: You must maintain a decent credit or CIBIL score which is certainly going to improve your SBI car loan eligibility.
• We recommend that you maintain at least a 750 credit score or above as it will indicate to the bank that you have full capability of repaying the car loan amount on time.
• Going for a shorter car loan repayment term: It is always a good idea to go for a shorter car loan repayment term when availing of an SBI car loan.
• A shorter car loan repayment term also implies that a lower rate of interest is going to be charged on your car loan amount.
• The odds of your car loan application getting accepted are higher when you choose a shorter loan repayment term.
• This is because you will be able to pay the car loan amount back to the bank at a much quicker pace then.
• Choosing a lower amount of SBI car loan: It is much simpler for not only SBI but any bank for approving a loan when the amount of loan is low.
• This will not only ensure a lower SBI car loan rate of interest for you but also quick approval and disbursement. 
• Having a low DTI ratio: The bank is going to take a look at the provided Debt-to-income, or DTI ratio before it goes on to accept your application for an SBI car loan.
• In case there is a substantial equilibrium between your expenses and your salary, then the odds of your application getting approved at a lower rate of interest will increase.

Documents required for SBI car loan

For Salaried individuals 

• Duly filled application form of SBI bank car loan
• Bank account statements for the past six months
• Passport-size pictures (two) 
• Identity proof
• Address proof 
• Income Proof: Form 16 or Income Tax Returns (For the past Two Years), Salary Slip (Most recent) 
• Identity Proof: Aadhar Card, PAN card, Passport, Voters Identity Card, Driving License, or any other (A xerox of any one of these) 
• Address Proof: Passport, Voters Identity Card, Driving License, Ration Card, Electricity Bill, Telephone Bill, Water Bill, Life Insurance scheme, or any other (A xerox of any one of these) 

For Non-Salaried Individuals, Professionals, or Businessmen

• Duly filled application form of SBI bank car loan
• Bank account statements for the past six months
• Passport-size pictures (two) 
• Identity proof
• Address proof 
• Income Proof: Form 16 or Income Tax Returns (For the past Two Years), Salary Slip (Most recent)
• Evaluated Balance Sheet 
• Profit and Loss statement of the past two year 
• Certificate of SSI registration/ Certificate of Sales Tax/ Xerox of Partnership 
• Identity Proof: Aadhar Card, PAN card, Passport, Voters Identity Card, Driving License, or any other (A xerox of any one of these) 
• Address Proof: Passport, Voters Identity Card, Driving License, Ration Card, Electricity Bill, Telephone Bill, Water Bill, Life Insurance scheme, or any other (A xerox of any one of these)

For individuals involved in agricultural or associated activities

• Duly filled application form of SBI bank car loan
• Bank account statements for the past six months
• Passport-size pictures (two) 
• Identity proof
• Address proof

Direct agricultural activity (crop cultivation)

• Khasra (indicating cropping pattern) along with pictures 
• Patta (indicating landholding) along with pictures
• All land must be on a freehold basis. Moreover, proof of possession must be in the borrower’s name.
• Associated agricultural activities (such as Dairy, Plantation, Poultry, Horticulture, or others)
• Documents of proof of functioning of the business activities that are to be submitted.
• Identity Proof: Aadhar Card, PAN card, Passport, Voters Identity Card, Driving License, or any other (A xerox of any one of these) 
• Address Proof: Passport, Voters Identity Card, Driving License, Ration Card, Electricity Bill, Telephone Bill, Water Bill, Life Insurance scheme, or any other (A xerox of any one of these)

Also read – IIFL Home Loan

SBI Car Loan EMI

Before you proceed with applying for an SBI car loan, you would want to be aware of the exact amount that you are going to pay for the entire car loan repayment tenure.

This particular amount is known as Equated Monthly Installment, or EMI which is a simple way of repaying the car loan amount. 

Calculating your EMI amount will give you a clearer idea of how you are going to manage your monthly expenditures in a better way. 

The following is a simple formula for calculating your EMI amount on an SBI car loan: 

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

Using the above-mentioned formula, you will get the EMI amount that you are going to pay every month for your SBI car loan. 

Here, P stands for the principal loan amount, r stands for the specified SBI car loan rate of interest, and n stands for the total number of repayment years.

SBI Car Loan Prepayment Charges and Other Fees

SBI Car Loan Prepayment Charges

SBI Car Loan Prepayment charges will constitute 1% of your amount of due payment (Plus GST)

Processing fees   

• For New Cars: 0.40% of the total SBI car loan amount + GST
• Minimum ₹1,000 + GST
• Maximum of Rs.7,500 + GST
• For Pre-Owned Cars: 1.25% of the total SBI car loan amount + GST
• Minimum amount: ₹3,750 + GST
• Maximum amount: ₹10,000 + GST.

SBI Car Loan Overall Review

SBI Car Loan offers its borrowers exactly the most adequate amount that is required for financing their brand new car. 

Car Loan SBI Interest Rate, as well as Monthly Installment amounts offered by the bank, are too low and favorable for all kinds of buyers.

And with the repayment term of the SBI Car Loan rate being up to 7 years, the bank offers everything merry.

Moreover, the entire procedure for availing of an SBI Car Loan is incredibly simple and quick.

It is also worth mentioning that the SBI Car Loan Rate of Interest is among the lowest in the entire financing industry. 

A large number of SBI Car Loan reviewers have often talked about their experiences of buying a four-wheeler with SBI bank.

Most of them have claimed that they were highly satisfied with the financing procedure of the bank.

They also found the SBI Car Loan Rate of Interest to be truly favorable.

Any other charges while applying for the loan were also presented to them beforehand.