How to use the SBI car loan EMI Calculator

People opting for car loans have increased in huge numbers because of reducing rates and easing of the process. Most of the banks offer car loans at competitive rates and highly flexible loan tenure. The State Bank of India is one of those banks that provide car loans at highly affordable rates. The processing of the loan application is also very quick and all the process has been digitised. The bank has a reputation of disbursing the loan amount very quickly.

SBI offers its customers the SBI EMI Calculator that helps to calculate and plan the car loan. Using this calculator the applicant can check how much he needs to pay the equated monthly instalment (EMI) and the total interest amount that has to be paid over the tenure of the loan. Using the calculator is an extremely easy process. The user just needs to fill in the required details and the EMI and interest payable is displayed on the screen.

Here is the detailed process to use the SBI car loan EMI calculator:

• The user needs to fill the total loan amount that he wants to take to purchase his car. It is worth noting here that the total amount of the vehicle need not be entered.

• In the next box, the user needs to enter the loan tenure. This tenure should be entered in the number of months for which the loan has to be taken. 

• In the last box, the user has input the interest rate that the bank has proposed. The interest rate depends highly on the financial history of the applicant and his previous engagement with the bank. A person with a better financial history, wherein he has cleared his dues on time and has cleared all his credits, gets the loan at a lower interest rate than the person who has frequently defaulted in credit repayments.

• Once these details are fed in the calculator, the user has to click the calculate button.

• The calculator then calculates the EMI amount and the total interest amount for the input set of data.

• In case the user wants to re-enter the details, he has to press the reset button. Once this button is pressed, the data is flushed and the user can input fresh data again in the calculator.

In order to get the car loan from SBI at lower interest rate, the applicant should ensure that he has a sound credit history. It will help him to get the loan at low interest rates. Another deciding factor for lower interest rate is the past relationship of the applicant with the bank. If the applicant has been a loyal customer of the bank and has availed its services like savings account, credit card, etc., he is likely to get the loan at lower interest rate.

The car loan EMI calculator helps the applicant to find out the amount he would have to pay per month and the total interest that would be needed to be repaid during the loan tenure. It helps the applicant to plan his car loan accordingly so that he does not put extra strain on his daily finances.

Top Tips for Lowest Interest Rates on Car Loans

The automobile market is on the boom since the past decade in India. The number of people who buy cars these days have outgrown every past record. Not only the development of infrastructure has motivated people to buy cars but also the ease with which we get car loans today has enabled people to buy cars and pay back the loan amount subsequently. However, every company that provides car loans does not suit every buyer. The rate of interest, tenure, prepayment charges and other aspects are prime movers that help people decide the type of loan they want to take to ride back home in their favourite car.

The interest rate on car loans differs from person to person. If we follow some of the best practices, we can end up paying far less on car loans on maturity.

YOUR CREDIT SCORE- Your credit score matters a lot when it comes to calculating the interest rate for your car loan by the bank. The bank analyses your financial history thoroughly and it accordingly decides your creditworthiness, based on which they offer you the interest rate for your car loan. People with a higher credit score get loans at relatively lower interest rates. So it is advisable that if you are planning to take a car loan in near future, start to repair your credit score by following the best practices.

PRICE OF THE CAR- Lower the price of the car, lower would be the loan amount and in turn the bank would impose relatively lower rate of interest on your loan amount. Every dealer has a huge margin on cars. Try to get the best deal possible. You can try various showrooms in the vicinity and enquire about the price of the model you want to purchase. Also, you can try to negotiate the freebies that the dealer can provide you in case every dealer offers the same price.

KEEP THE LOAN TENURE AS LESS AS POSSIBLE- Even if you have a huge loan to repay, try to keep the loan tenure as less as possible. In that instance, you will end up saving a huge amount of interest money which would otherwise be needed to pay off your car loan. Also, lower tenure allows the bank to reduce your interest rate further. The average loan repayment period is around 67 months for a car loan. Try to fix your loan tenure to around 50 months if it does not eat-up your finances and affect your daily budget.

AVOID UNNECESSARY ACCESSORIES- Every dealership offers a set of accessories with every model. Sometimes they may be necessary whereas sometimes they may not be so useful for you. Dealers charge a standard amount for these accessories. If tired in the automobile market, the buyer can get his vehicle customised as per his needs at lower prices and according to his needs. Paying for a high-end music system when you are not such a music freak makes no sense.

CHOOSE YOUR CURRENT BANK FOR LOANS- Your current bank knows very well how efficiently you have managed your finances in the past and how well have you repaid your loans on time. Moreover, as you are a loyal customer, they will provide you the car loan at much lower interest rate. Generally, people opt for loans from banks with which the dealer has tie-ups. Most dealers discourage people from taking loans from other banks. The bank having tie-up with the dealer has relatively higher rate of interest. Refrain from taking loans from them and reach out to the bank that offers you the best deal.

Tips to get a Car loan from SBI

Many of us wish to buy our dream car. A car loan from SBI can help you make your dreams come true. Take an SBI car loan that brings with it many benefits in order to realize your dream. SBI bank offers you the best deal on car loan and it charges very low interest rates, thus ensuring lowest EMIs. Also, SBI bank assures quick disbursement of loan and minimal paper work.

Follow the tips mentioned below before seeking SBI car loan

1. Look out for special offers during the festive seasons. For instance, SBI offers special loan schemes during festive seasons. The bank introduced a scheme under which it recently introduced 8 percent interest rate in the first year and along with it 10 percent interest rate for the next two years. It is also better to wait for year end to buy a car as car dealers offer great discounts during Christmas and year end to clear off stocks. Banks like SBI tend to reduce the interest rates during this time, thus enabling buyers to enjoy lower SBI car loan EMIs.
   
2. Get the cheapest loan by opting for SBI car loan. For a fact the bank offers affordable EMIs, depending upon the loan amount and the tenure. For instance, if a person has taken SBI car loan of Rs. 4 lakhs for three years, with interest rate of 8.87 percent, then the monthly instalment would be of Rs.12,535, which is the cheapest. On the other hand, if you are opting for a loan tenure of more than three years, may be of five years, then prefer choosing Canara Bank. The average interest rate charged by Canara bank is 9.2 percent and the EMI of the first year comes out to be Rs.8207. Therefore, if you choose a short tenure for repayment of loan then SBI car loan is the best.
   
3. SBI car loan is not offered on floating rates. The company offers loan at attractive interest rates which is fixed for the entire tenure. Avoid floating rates because such rates are subject to changes and volatility of interest rate changes.
   
4. Make sure that the bank you choose is offering either 100 percent finance or close to it for the on road price of the car. In this regard, it is also important that the borrower has a clear credit history. It should be known that this type of offer is meant for only a few cars. Usually, these include cars that have fantastic resale value. It is advisable that when borrowers are taking car loans, they should avoid long tenure loans, instead take short term loans, like the ones SBI offers. Therefore, SBI car loan for a short tenure is advisable.
   
5. Finding the right match. Every bank has its own conditions when it comes to offering car loans. For instance, some banks prefer giving loans to people who are salaried-professionals, while other banks offer it to self-employed professionals as well. You should know which is the best for you and then chose from IDBI or Canara bank or SBI car loan or any other loan option.
   
6. Check if the bank has foreclosure or prepaid charges. For instance, SBI and even Union Bank of India do not have any foreclosure charges or prepayment charges. This means if you want to repay the loan before time, you will not have to pay any penalty. Therefore, seeking SBI car loan is advisable.

Therefore, SBI car loan involves many advantages that should be taken into account while paying the loan. SBI is one of the largest banking institutions of the country and so SBI car loan gives you the advantage of enjoying easy loan repayments along with trustworthy services.

What Are the Options to Get Car Loan With Lower Interest Rates?

Most cherish dreams to buy a car but not everyone has the required capital to do so. This is where car loans can help you. A person who has some funds to account for the down payment and other charges can buy a car with the help of a bank. The bank pays the balance amount and the applicant then becomes liable to pay back the bank for it. The applicant can pay off the loan through Equated Monthly Instalments (EMIs). This reduces the burden of payment and gives the applicant a lot of financial options. For instance, the applicant can decide on how much of a down payment they can afford and then choose a loan amount that they can pay back without any difficulty.

The applicant has to submit some essential and required documents in order to avail a car loan. These include their identity proof, age proof, residence proof, photographs, salary slips, and income tax returns. This is a standard procedure that assures the bank that the applicant in question has given the correct information and is capable of managing the repayments. Another factor that plays an important part is the applicant’s credit score. If the applicant has a good credit score then it assures the bank that the individual in question can be trusted with the loan repayment. If the credit score is poor, the applicant is deemed unfit and their application may be rejected outright even if they have the income to sustain the EMIs.

There are a lot of banks in the market that offer car loans at low interest rates. Banks such as HDFC, ICICI, State Bank of India, Punjab National Bank, Standard Chartered, and Axis Bank give car loans at competitive interest rates. Sometimes, with so many options, it becomes difficult for an applicant to choose the right bank. The information provided below will act as a guide for people looking for the right bank for their car loan.

State Bank of India

State Bank of India is one of the oldest government-owned banks in the country. The bank’s car loan interest rates start at 9.25%. The EMI for the loan starts at Rs.1,619 per lakh for the maximum period which can go up to 7 years. The applicant must have an income of at least Rs. 3 lakh per annum. A processing fee of Rs. 950 plus service tax will be charged.

ICICI

ICICI is the biggest private bank in the country. The bank gives out car loans at an interest rate of 9.10% to 13.25%. The minimum amount of loan that can be availed is Rs. 1 lakh which can be paid back in a maximum period of 7 years. It must be noted that a processing fee of Rs. 6,153 will be charged.

HDFC

HDFC is a prominent private bank in the country. It offers car loans at an interest rate of 9.15% to 11.6%. The minimum amount of the loan is Rs. 1 lakh and the maximum tenure is 7 years. A processing fee of Rs. 5,150 is charged.

Punjab National Bank

Punjab National Bank is a state-owned bank that offers car loans at an interest rate ranging from 9.6% to 11.2%. The EMI starts at Rs.1,640 and the loan period can go up to 7 years. A processing fee of 1% is charged on the loan amount but the amount charged cannot exceed Rs. 6,000.

Standard Chartered

Standard Chartered offers car loans at an interest rate of 11.25% to 14.49%. The maximum loan amount that can be availed is Rs.30 lakh which can be paid back over a period of 5 years. No processing fee is charged.

Axis Bank

Axis Bank is the third largest private sector bank in the country. Axis offers car loans at an interest rate of 9% to 11.50%. The minimum loan amount is Rs. 1 lakh which can be availed for a period of 7 years. A processing fee of up to Rs.5,500 may be charged.

The information has been summarised in the following table.

Bank	Interest Rate	Processing Fee	Loan Amount	Tenure
SBI	9.25%	Rs. 950 + Serv. Tax		7 Years (Max)
ICICI	9.10% - 13.25%	Rs. 6153 (Max)	Rs. 1 lakh (Min)	1-7 Years
HDFC	9.15% - 11.60%	Rs. 5150	Rs. 1 lakh (Min)	7 Years (Max)
PNB	9.60% - 11.20%	1%, Max Rs. 6000		7 Years (Max)
Standard Chartered	11.25% - 14.49%	Nil	Rs 30 lakh (Max)	5 Years (Max)
Axis	9.00% - 11.50%	Rs 5500	Rs. 1 lakh (Min)	7 Years (Max)