Who doesn’t dream of a new car of his own? Of course, everyone does! But affording your dream car is not always easy. It needs considerable money when buying and preparing for on-road service and overall maintenance. Seems quite challenging, right?
Well, not anymore! Because the State Bank of India offers the best SBI car loan interest rate. Car loans are a fund your bank provides to manage your finances to buy a new car. Be it paperwork, interest rates, or EMIs, SBI has the best deals for you.
But you need to have a complete idea about the terms and conditions of car loans before you decide to apply for them. So, for your better understanding, we have listed all the needed points regarding SBI car loan interest rates in this article. So, There you go!
Eligibility
Before you are willing to opt for a car loan, you need to understand if you are eligible for the loan. And if you are, what would be the loan amount provided to you according to your eligibility?
Qualified Applicants | Income Criteria | Maximum Loan Amount Offered |
Regular employees of Central Public Sector Enterprises
(Maharatnas/Navratnas/Miniratnas)
|
Net Annual Income of applicant and/or co-applicant, if any, should be a minimum of Rs.3,00,000 | 48x Net Monthly Income |
|
Net Profit or Gross Taxable income of Rs.3,00,000 p.a.
(income of co-applicant can be clubbed together) |
4x Gross or Net Profit or taxable income as per ITR after adding back depreciation and repayment of all existing loans |
Persons engaged in agriculture and allied activities
(Income tax return is not required in case of agriculturists) |
Net Annual income of the applicant and/or co-applicant together should be a minimum of Rs.4,00,000 | 3 times the Net Annual Income |
In the case of old vehicles, the cost is different.
- For private sector employees: starts from Rs. 2,50,000
- For people in business and others: start from Rs.3,00,000.
- Farmers and similar workers: starts from Rs.4,00,000.
Repayment Tenure: 8 years-the age of the vehicle (maximum five years).
EMI/NMI Ratio: Depending on Net Annual Income, EMI/NMI ratio will be as under:
Up to Rs. 5 lakh: 50%
Above Rs. 10 lakh: 70%
Facts And Benefits
There is no doubt that SBI car loans interest rates bring you the best deals possible. But is that it? Of course not! There’s more! Let’s find out!
- You don’t have to pay any EMI in advance.
- Get up to 90% financing of the vehicles on road price.
- You get additional life insurance alongside car loans
- You can repay the tenure for seven years.
- Extremely minimal interest rates, and on top of that, monthly instalments are available.
- Exciting loan amounts are available for new and old passenger cars.
Penalty
Although there is no prepayment penalty, there are some penalties that you have to pay in case you are unable to repay the loan amount within the given time. It’s around 2% per month, which will be counted on the money you still need to pay to repay the loan.
Now You Know!
This brings us to the end of our blog on the different car loan interest rates provided by SBI. Hope that now you know all the terms and conditions of car loans, and will make sure to check out the deals on car loans especially in festive reason. Hence you are all set to choose the best deals offering you the best SBI car loan interest rate. So, getting your dream car is more real and accessible now.