Choosing the best bank for car loan can be a hefty job since there are several banks that offer varying interest rates for car loans. Besides, this rate of interest is changeable depending upon the tenure for which the loan is availed, the quantum of the loan and income source of the borrower (whether business or job).
It is difficult to name any particular bank for car loan since no bank charges the same lowest rate of interest at all levels and tenure of loan amount.
Banks and their Rates of Interests
From the above table, it can be said that the State Bank of India could be a fair choice given its reasonable rate of interest on loan for both men and women. Let’s highlight the other factors that make SBI bank an ideal choice when seeking car loans.
Why the SBI?
Compared to other banks, SBI offers the best SBI car loan interest rate for financing your four-wheeler. The loan available from the bank comes with lowest rate of interest, minimal paperwork, prompt disbursement and lowest EMI.
What are the salient features of SBI car loan interest rate scheme?
- Longest repayment period (7 years)
- Lowest EMI and interest rate
- The SBI car loan interest rate on the loan is based upon Daily Reducing Balance
- The loan from SBI does not include any advance EMI
- The SBI loan scheme includes financing on-road price (which includes Annual Maintenance/Extended Warranty/Total Service Package/Cost of Accessories, Registration
- No foreclosure charges or pre-payment penalty
- Also, the scheme incorporates optional SBI Life Insurance coverage
- The scheme includes reimbursement of finances for cars that are bought out of your own personal funds at a rate of interest that is applicable on New Car financing
- Overdraft facility is offered
Remember, you can use the SBI car loan interest rate scheme for buying passengers cars, SUVs, Multi Utility Vehicle (MUV), etc.
What is the eligibility for availing SBI car loan?
Individuals should be aged between 21 years and 65 years of age. He/she should belong any of the three categories as below:
1. The person applying for SBI car loan interest rate should be a regular employee of state or central government. Or, he should be an employee of public sector undertaking or a reputed company or a private firm. Professionals or partnership firms or businessmen or professionals or persons engaged in agricultural and allied activities.
2. Also, the income of individuals will determine whether the person can apply for car loan. The net annual income of the applicant should be minimum of Rs. 2,50,000. The income of the co-applicant should be gross taxable income of a total of Rs. 4,00,000 p.a.. The net annual income and the applicant clubbed with the co applicant should be Rs. 4,00,000.
3. The maximum loan amount that you can apply for includes 48 times of the net monthly income.
There are certain documents required for applying for SBI car loan interest rate petition. This includes:
Salaried person- Bank statement for last 6 months, proof of identity, 2 passport sized photos, income proof with last salary slip.
Non-salaried person or businessmen or professional- Proof of address and identity, state of bank account for past 6 months, 2 passport sized photos, income proof
Person engaged in allied and agricultural activities- Bank statement of last 6 months, proof of identity, proof of your address, 2 passport size photos, Ownership proof of land that the person claims to be his own, documentary proof of running activities such as poultry, plantation, dairy, etc.
Thus, if you want to buy a four wheeler, opt the SBI car loan interest rate that can give you maximum benefits.
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