SBI Car Loan Scheme 2023: Eligibility, Salient Features & more

Are you dreaming of driving home a brand-new car? State Bank of India (SBI) is here to make your dream a reality with its enticing SBI Car Loan Scheme. SBI offers you the best deal for financing your new car, including the lowest interest rates, lowest Equated Monthly Installments (EMI), minimal paperwork, and quick disbursement. Plus, there’s a special festive offer of Zero Processing Fee until January 31st, 2024! Read on to discover all you need to know about SBI’s Car Loan Scheme.

Festive Dhamaka: Zero Processing Fee until January 31st, 2024

Before we dive into the details, let’s highlight the limited-time festive offer – Zero Processing Fee until January 31st, 2024. This is an excellent opportunity to save on the initial costs of your car loan. Don’t miss out on this chance to make your car purchase even more affordable!

Salient Features of SBI Car Loan Scheme

1. Lowest Interest Rates & EMI: SBI offers the lowest interest rates and EMIs, making your car purchase more budget-friendly.
2. Longest Repayment Tenure: You can enjoy a repayment period of up to 7 years, allowing you flexibility in managing your finances.
3. Financing on ‘On-Road Price’: SBI’s financing covers the ‘On-Road price,’ which includes registration and insurance costs. This means you don’t have to worry about additional expenses.
4. Interest Calculated on Daily Reducing Balance: With interest calculated on the daily reducing balance, you pay less interest over time, saving you money.
5. For New Passenger Cars, MUVs, and SUVs: Whether you’re eyeing a sleek sedan, a versatile MUV, or a robust SUV, SBI’s Car Loan Scheme has you covered.
6. No Prepayment Charges: You can repay your loan early without incurring any prepayment charges.
7. No Foreclosure Charges After 1 Year: After the first year of your loan, you can close it without facing foreclosure charges.
8. Financing Up to 90% of ‘On-Road Price’: SBI provides financing for up to 90% of the ‘On-Road Price,’ reducing the burden of upfront payments.
9. No Advance EMI: You don’t have to worry about advance EMIs, making it easier to manage your initial finances.
10. Optional SBI Life Insurance Cover Available: SBI offers the option to include SBI Life Insurance cover, providing financial security for you and your family.

Flexi Pay Option in SBI Car Loan

SBI understands that different borrowers have varying financial needs and capabilities. To cater to this, SBI introduces the exclusive Flexi pay option, where borrowers can choose from two flexible repayment plans:

• First 6 months EMI to be 50% of Regular EMI: This option is available for loan tenures of a minimum of 36 months.
• First 6 months EMI to be 50% of Regular EMI & next 6 months 75% of Regular EMI: This plan is ideal for loan tenures of a minimum of 60 months.

Factors affecting SBI car loan

1. Credit Score (CIBIL Score):
   • Your credit score plays a significant role in determining your eligibility and the interest rate you qualify for. A higher credit score indicates better creditworthiness and can lead to lower interest rates.
2. Income and Employment Status:
   • SBI assesses your income and employment stability to determine your ability to repay the loan. The bank may have specific income criteria for different loan schemes.
3. Age:
   • You must meet the minimum and maximum age requirements set by SBI to be eligible for a car loan. Typically, applicants should be between 21 and 70 years old.
4. Loan Amount and Down Payment:
   • The loan amount you request and the down payment you can make affect the loan terms. A larger down payment may result in a lower loan amount and, in some cases, better interest rates.
5. Loan Tenure:
   • The duration of the loan, known as the loan tenure, can impact the interest rate and monthly EMI. Shorter tenures generally have lower interest rates but higher EMIs, while longer tenures may have higher interest rates but lower EMIs.
6. Type of Car:
   • The make and model of the car you intend to purchase can influence the loan terms. Some banks may have specific eligibility criteria for certain types of cars, especially luxury or high-end vehicles.
7. Loan-to-Value (LTV) Ratio:
   • The LTV ratio represents the loan amount as a percentage of the car’s on-road price. A lower LTV ratio (higher down payment) can result in better loan terms.
8. Existing Debt Obligations:
   • Your current financial commitments, such as outstanding loans or credit card debt, may affect your eligibility and the loan amount you can qualify for. SBI considers your debt-to-income ratio when evaluating your application.
9. Repayment Capacity:
   • SBI assesses your ability to repay the loan based on your income, expenses, and other financial obligations. A higher income and lower debt burden can improve your repayment capacity.
10. Credit History:
    • In addition to your credit score, your credit history, including any past defaults or late payments, can impact your loan approval and interest rate.
11. Relationship with SBI:
    • Existing customers of SBI, especially those with a history of maintaining their accounts and payments, may receive preferential treatment and potentially better loan terms.
12. Documentation:
    • Providing accurate and complete documentation is essential for loan approval. Ensure you submit all required documents promptly to avoid delays.
13. Market Conditions:
    • Economic conditions and prevailing interest rates in the market can influence the interest rates offered by SBI. Rates may fluctuate over time.
14. Promotional Offers and Discounts:
    • SBI may periodically offer special promotions, discounts, or zero processing fees for car loans during specific periods. Taking advantage of these offers can lead to cost savings.

Eligibility Criteria for SBI Car Loan

Before applying for an SBI Car Loan, ensure that you meet the eligibility criteria:

Category	Income Criteria	Max. Loan Amount
Regular employees of Central Public Sector Enterprises (Maharatnas/ Navratnas/ Miniratnas), Defense Salary package (DSP), Para Military salary package (PMSP), Indian Coastal Guard Package (IGSP) Customers, and Short Commissioned Officers of various Defense establishments.	Net Annual Income of applicant and/or co-applicant if any, together should be a minimum of Rs. 3,00,000/-.	48 times of the Net Monthly Income.
Professionals, Self-employed, Businessmen, proprietary/partnership firms and others who are income tax assesses	The net profit or gross taxable income should be Rs. 3,00,000 p.a. (income of co-applicant can be clubbed together).	4 times the net profit or gross taxable income as per Income Tax Return (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.	The net annual income of the applicant and/or co-applicant (if any) should be a minimum of Rs. 4,00,000.	3 times of the net annual income.

Documents Required for SBI Car Loan

To apply for an SBI Car Loan, you will need to submit the following documents along with the completed application form:

For Salaried Individuals:

• Statement of bank account for the last 6 months.
• 2 passport size photographs.
• Proof of Identity (e.g., Passport, PAN Card, Voters ID card, Driving License, etc.).
• Address Proof (e.g., Ration card, Driving License, Voters ID card, Passport, Telephone Bill, Electricity bill, Life Insurance policy).
• Income Proof: Latest Salary Slip, Form 16.
• I.T. Returns or Form 16 for the last 2 years.

For SBI’s Salary Package customers maintaining their salary account with the bank for a minimum of 12 months, Form 16/ITR and Statement of Bank Account (For six months) requirements are waived.

For Non-Salaried/Professional/Businessmen:

• Statement of bank account for the last 6 months.
• 2 passport size photographs.
• Proof of Identity (e.g., Passport, PAN Card, Voters ID card, Driving License, etc.).
• Address Proof (e.g., Ration card, Driving License, Voters ID card, Passport, Telephone Bill, Electricity bill, Life Insurance policy).
• Income Proof: ITR for the 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.

For Persons Engaged in Agricultural and Allied Activities:

• Statement of bank account for the last 6 months.
• 2 passport size photographs.
• Proof of Identity (e.g., Passport, PAN Card, Voters ID card, Driving License, etc.).
• Address Proof (e.g., Ration card, Driving License, Voters ID card, Passport, Telephone Bill, Electricity bill, Life Insurance policy).

Direct Agricultural Activity (Crop Cultivation):

• Khasra/Chitta Adangal (showing cropping pattern).
• Patta/Khatoni (showing land holding) with photograph. All land should be on freehold basis, and ownership proof should be in the name of the borrower.

Allied Agricultural Activity (e.g., Dairy, Poultry, Plantation/Horticulture):

• Documentary proof of running the activities.

In conclusion, the SBI Car Loan Scheme is designed to make your car ownership dreams come true while ensuring flexibility and affordability. With the lowest interest rates, extended repayment tenures, and zero processing fees during the festive season, there’s no better time to embark on your journey towards owning a new car. Don’t miss out on this incredible opportunity to drive home your dream car with the trusted backing of the State Bank of India.

For more information or to apply for a car loan, you can dial 1800-11-2211 or give a Missed Call on 7208933142 or SMS “CAR” to 7208933145 to get a call back from the SBI Contact Centre. Visit the official SBI website to view the latest interest rates and processing fees.

SBI Car Loan Interest Rates

Scheme	(1-year MCLR: 8.55%)
i) SBI Car Loan, ii) NRI Car Loan, iii) Assured Car Loan Scheme	From 8.90% to  9.70%
Loyalty Car Loan Scheme | SBI Car Loan, NRI Car Loan	From 8.85% to 9.75% (CIC Based rates are applicable)
SBI Green Car Loan (For Electric Cars)	From 8.65% to 9.35%
Certified Pre-owned Car Loan Scheme	From 11.30% to 14.80% (CIC Based rates are applicable).
SBI Two-Wheeler Loan	17.80% to 19.55% p.a.

SBI NRI Car Loan

Features:

1. Eligibility: The NRI Car Loan scheme is designed for Non-Resident Indians (NRI) who wish to purchase a car. Under this scheme, the NRI will be the borrower, and a close relative residing in India will act as either the co-applicant or guarantor.
2. Loan Amount: The eligible loan amount is determined based on the income of the applicant (NRI).
3. Competitive Interest Rates: State Bank of India offers competitive interest rates for NRI Car Loans. For the latest interest rates, you can visit the SBI website.
4. Repayment Period: You can choose a repayment period of up to 7 years, providing flexibility in managing your loan.
5. Interest Calculation: The interest on the loan is calculated on a daily reducing balance, which can be beneficial for reducing the overall interest paid over the loan term.
6. Financing: SBI offers financing of up to 90% of the ‘On-road Price’ of the vehicle. The On-Road Price includes the vehicle’s ex-showroom price, registration fees, and insurance costs.
7. EMI/NMI: The Equated Monthly Installment (EMI) is structured based on your Net Monthly Income (NMI). The EMI percentage is as follows: Up to Rs. 5 Lakhs – 50%, Rs. 5-10 Lakhs – 60%, and Above Rs. 10 Lakhs – 65%.
8. Income Requirements:
   • For the Borrower (NRI): Minimum Net Monthly Income of USD 1000 or equivalent in other currencies, or a minimum Net Annual Income of USD 12000 or equivalent in other currencies.
9. Repayment: The loan repayment can be set up through Standing Instruction (SI) on the applicant’s NRI account with SBI.
10. Eligible Vehicles: The loan is available for the purchase of new passenger cars, Multi Utility Vehicles (MUVs), and SUVs.

Eligibility Criteria

• NRI Applicant (Borrower):
  • Must possess a valid Indian passport.
  • Should maintain a steady source of income.
  • Must be employed abroad for at least two years.
  • Must hold a valid job contract or work permit.
  • Should maintain an NRI account with SBI for at least twelve months with a minimum average balance of ₹50,000/- or open a new account with an initial deposit of USD 5000/- or its equivalent.
  • Must have a minimum Net Monthly Income of USD 1000/- or a minimum Net Annual Income of USD 12000/- (equivalent amount in other currencies).
  • In case of being a customer of another bank, the borrower must open an NRI account with SBI for the repayment of EMIs.
• Co-Applicant / Guarantor (Resident Indian):
  • The co-applicant or guarantor must be a close relative, including father, mother, spouse, son, or daughter.
  • Age of the co-applicant or guarantor should be between 21 and 70 years.
  • The loan must be repaid before the applicant (NRI) reaches the age of 75.
  • Income from the co-applicant can be considered when determining loan eligibility.

Required Documents:

From the Applicant (NRI Borrower):

• 3 passport size photos
• Passport copy with page containing visa stamping
• Copy of valid work permit
• Employment contract copy (If the contract is in any other language, then an English translation duly attested by employer/consulate/embassy/SBI foreign office)
• Latest salary certificate in original or proof of income in case of self-employed/professionals (e.g., IT Return of the residing country of the NRI or Tax Residency Certificate)
• Copy of the identity card issued by the employer
• Proof of residence (e.g., driving license, utility bills, etc.)
• Copy of Continuous Discharge Certificate if guarantor is employed in the merchant navy
• Power of Attorney, if required, in the bank’s standard format duly stamped and notarized/attested by the Indian Embassy/Consulate

From the Guarantor (Resident Indian):

• 2 passport size photographs
• Signature identification from banker
• A copy of passport/voters ID card/PAN card
• Proof of residence

SBI Assured Car Loan Scheme

Features:

Margin Required: The loan amount is secured by a 100% fixed deposit, which serves as collateral for the “On Road price” of the car.

Eligible Age Group: This scheme is open to individuals aged 18 years and above with no upper age limit.

Minimum Income Criteria: There is no specific income requirement. The income declared by the applicant will be accepted for loan consideration.

Maximum Loan Amount: The loan amount can range from a minimum of Rs. 1 lakh with no maximum limit. This means you can borrow as much as you need based on your chosen car’s price and your fixed deposit.

EMI/NMI Ratio: There is no specific EMI/NMI (Equated Monthly Installment/Net Monthly Income) ratio mentioned, which implies that the loan amount is not directly linked to your monthly income.

Repayment Period: Borrowers have the flexibility to choose a repayment period between 3 to 7 years, depending on their convenience and financial situation.

Interest Rate: For the current interest rates, you can check the SBI website or the provided link.

Processing Fee: The processing fee details can be found on the SBI website or through the provided link.

Loan Application Information:

• To get more information or apply for the loan, you can dial 1800-11-2211 to contact the SBI Contact Centre.
• Alternatively, you can give a Missed Call on 7208933142 or send an SMS with “CAR” to 7208933145 to receive a call back from the SBI Contact Centre.

Documents Required:

The following documents need to be submitted along with your loan application:

1. Statement of Bank Account: Provide the statement of your bank account for the last 6 months to showcase your financial transactions and stability.
2. Passport Size Photographs: Submit 2 passport size photographs of both the borrower and any guarantors if applicable.
3. Proof of Identity: A copy of your passport, voters ID card, or PAN card should be provided for identity verification.
4. Proof of Residence: Prove your residential address through documents such as tax receipts, telephone bills, electricity bills, or any other document that complies with regulatory and/or KYC requirements. Non-salaried individuals need to provide proof of their official address.
5. Formalities for Creation of Charge on FD: If required, follow the necessary formalities to create a charge on your fixed deposit, which serves as collateral for the loan.

This Assured Car Loan Scheme provides the flexibility to secure a car loan using your fixed deposit while offering a wide range of repayment options and no specific income criteria. For the most up-to-date information and detailed terms and conditions, it’s advisable to visit the official State Bank of India website or contact their customer service for further assistance.

SBI Loyalty Car Loan Scheme

Features:

Income Requirement:

• The minimum net annual income of the borrower should be Rs. 2.00 lakhs.

Loan Amount:

• The loan amount is determined based on three criteria:
  • A) 75% of the present market value of the house property (less present outstanding in the home loan account and home equity, if any).
  • B) EMI/NMI ratio will follow the respective car loan scheme.
  • C) 100% of the Ex-showroom price of the vehicle.
• The permissible loan amount will be the lowest of (A, B, and C).

Loan-to-Value (LTV) Ratio:

• The LTV ratio allows for a maximum of up to 100% of the Ex-Showroom Price of the car, meaning you can borrow the entire cost of the vehicle.

Repayment Period:

• Borrowers can choose a repayment period of up to 7 years, providing flexibility in managing the car loan.

Interest Rate:

• You can find the current interest rates on the SBI website or by following the provided link.

Processing Fee:

• Details regarding the processing fee can be found on the SBI website or through the provided link.

Security:

• The security requirements are as per the bank’s instructions and should be followed as directed.

Eligibility Criteria:

To be eligible for the Loyalty Car Loan Scheme, borrowers must meet the following criteria:

• They should have availed a housing loan from SBI.
• The housing loan should have been satisfactorily serviced for at least one year after the moratorium period.
• The borrower should have taken possession of the house.
• A valid equitable mortgage should be created.
• The security margin of at least 15% for the purchase/construction of the plot/house must be maintained.
• All terms and conditions regarding the sanction of the housing loan should be completed.

Frequently Asked Questions (FAQs) about SBI Car Loan Schemes

1. What is the SBI Car Loan Scheme, and who is eligible for it?
   • The SBI Car Loan Scheme is designed to provide financial assistance for purchasing a new car. Eligibility criteria include being an individual aged 21 to 70 years and meeting specific income criteria depending on your employment category.
2. What is the NRI Car Loan, and who can apply for it?
   • The NRI Car Loan is intended for Non-Resident Indians (NRIs) looking to finance their car purchase in India. NRIs can apply for this loan.
3. What is the Assured Car Loan Scheme, and how does it differ from the regular Car Loan Scheme?
   • The Assured Car Loan Scheme is similar to the regular SBI Car Loan but may offer different interest rates and benefits. Eligibility criteria, including income, are similar to the standard Car Loan Scheme.
4. Tell me more about the Loyalty Car Loan Scheme. Who qualifies for it?
   • The Loyalty Car Loan Scheme is available to existing SBI Car Loan and NRI Car Loan customers. It offers special interest rates and benefits as a loyalty reward for existing borrowers.
5. What is the SBI Green Car Loan, and how can I apply for it if I want to purchase an electric car?
   • The SBI Green Car Loan is designed for individuals interested in buying electric cars to promote environmental sustainability. You can apply for this loan if you intend to purchase an electric vehicle.
6. Can you explain the Certified Pre-owned Car Loan Scheme?
   • The Certified Pre-owned Car Loan Scheme is for individuals looking to buy certified pre-owned cars. The interest rates may vary based on factors such as the age and condition of the vehicle.
7. What is the interest rate range for the SBI Two-Wheeler Loan, and who can apply for it?
   • The SBI Two-Wheeler Loan comes with interest rates ranging from 17.80% to 19.55% per annum. Individuals seeking to finance the purchase of a two-wheeler can apply for this loan.
8. How are interest rates determined for New Car Loans based on CIC scores?
   • Interest rates for New Car Loans are determined based on the Credit Information Bureau (CIBIL) score and the loan term. Borrowers with higher CIBIL scores may enjoy lower interest rates.