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)

What is Car Loan EMI Calculator?

The ease and convenience of availability of finance has made life easier for the common man. Buying a car is no more restricted to those who can afford luxury. Car is no longer considered a luxury but a necessity. Almost anyone with a good credit history and decent regular income can now purchase a car as per his budget and liking by taking a car loan and repaying the loan through EMI. EMI or an Equated Monthly Instalment is the amount you as loan borrower will have to pay every month to the lender of the loan which can be any NBFC or Bank. The concept of EMI is very beneficial to the borrower as it allows you to make part payments and saves the burden of huge cash outflow at one go without disturbing your monthly expenses dramatically. As one can repay the loan in instalments a large section of the society can now own a car through the ease of repaying the loan through EMI. Before we go into the calculation of EMI, let us first understand the concept of EMI.

What is an EMI?

EMI is nothing but monthly payment that you need to make to repay the loan. The calculation of EMI is on the basis of principal amount borrowed and tenure of the loan. If you take a loan for a longer term then the EMI per month would be lower but if you take a loan for a lesser tenure than EMI per month will be higher as you have to repay the loan in lesser time. However, lower EMIs over longer terms also mean higher amount paid as the interest rate is paid for a longer duration. 

The EMI of a car loan, like any other loan is a sum of two elements the principal amount and the interest amount. The weight age of the interest component is higher at the beginning of the tenure and as the term goes on decreasing the interest component goes on decreasing and amount paid towards principal goes on increasing. 

How is car loan EMI calculated?

Simply put EMI is arrived at by calculating adding up the principal amount borrowed to the interest accumulated and dividing it by the number of months in which you are willing to repay the loan. You can calculate the EMI yourself by using the mathematical formula or by using the PMT function in excel or buy using an EMI calculator online. 

If you calculate the EMI using the mathematical formula then you have to do the following calculation: 

EMI= [(loan amount*rate of interest*(1+rate of interest)^tenure of loan in months]/[1+rate of interest)^(tenure of loan in month-1)]. 

To calculate the EMI on excel one has to use the PMT (rate, nper, pv) syntax, where rate is the rate of interest; nper is total number of instalments and pv is the loan amount. 

However, one can avoid all these calculations and simply use the EMI calculator for car loan. You can use the EMI calculator for purchase of old or new car. EMI is an extremely useful and handy tool as it gives you instant results and you can compare loans available at different interest rates for different tenures and accordingly you can decide on your car loan as per your monthly repayment capacity and financial income. 

To use the EMI calculator for your car loan, you will need to enter the following details in the EMI calculator 

Loan amount:

The amount of loan you intend to take for your car after making the down payment. The amount of loan that you will take depends upon the cost of the car you intend to buy and how much down payment you are willing to make. The EMI will be higher each month if the loan amount is high. 

Term of the loan:

Term of the loan or tenure is the total repayment time for the loan. The tenure of the loan is dependent on the time frame in which you feel you are comfortable paying the loan. For a car loan the maximum term is 5 years and if you are unable to repay your loan in a period of 5 years. If you are unable to repay the loan in 5 years then the ownership of the vehicle is transferred to the lender who can auction it to recover the balance amount of the loan. 

Interest Rate:

Interest rate is the rate charged by the lender on the amount when you borrow the loan. The interest rate also varies from one lender to another. This is where car loan EMI calculator is extremely useful as it helps you compare the EMI from different lenders instantly.

Once you enter all these details in the EMI calculator for car loan online it gives you the desired output along with the calculation for each month. 

Advantages of Using EMI calculator for Car Loan:

Easy Access

EMI calculator can be accessed by anyone online and you can use it to calculate EMI as per your convenience.

No Chance of errors in calculation

The chances of errors in calculation are higher if you do it by yourself. EMI calculator gives accurate results without any errors and hence it is a better option.

Saves time and the hassle of complex calculations

You can compare the loans being offered by different banks by using the EMI calculator online and save time as all the calculations are done in few seconds so you compare the various offers as you do not have to calculate them yourself. 

Helps in Financial Planning

Using an EMI calculator for car loan helps you keep a check on your finances before you take up a loan that would not disturb your monthly budget.

Thus, you can easily workout the EMI of your car loan using the EMI calculator online.

SBI Car Loan

Introduction:

State Bank of India (SBI) is India’s leading public sector bank which is headquartered in Mumbai, Maharashtra. It offers a range of financial services such as personal banking, corporate banking, agricultural banking, etc. It has more than 14,000 branches in India, including 191 foreign offices across 36 countries as recorded in year 2016-17. SBI is counted among the top banks in India as it provides innovating banking solutions to its clients. SBI offers car loan schemes with competitive interest rates, longest loan tenure and flexible repayment options. SBI car loan can be availed easily by different segments of the population such as self-employed professionals, salaried professionals, etc. It can be availed to finance new cars, used cars and multi-utility vehicles.

Features of SBI Car Loan:

Low interest rates: SBI car loan offers lowest possible interest rates starting from 9.25% onwards. The interest rate given to a borrower is calculated on daily reducing basis. 

No foreclosure charges: No foreclosure charges are levied on SBI Car loan. It means that borrowers need not to pay any additional charges for pre-paying the borrowed loan amount. 

Longest repayment tenure: Borrowers are given longest repayment tenure of up to 7 years for re-paying the borrowed loan amount. 

Financing on-road price of the car: SBI car loan finances up to 85% of the on-price of the car which includes annual maintenance, cost of accessories, insurance charges, registration cost, total service package and extended warranty. 

Multiple loan options available: Borrowers can choose a car loan scheme from multiple car loan options available. SBI car loan schemes are designed to finance both new as well as used cars. 

Optional SBI life cover: Borrowers can also avail SBI life insurance cover along with SBI car loan by just paying some extra amount. 

Overdraft facility: Along with the SBI car loan, borrowers can also avail an overdraft facility from State Bank of India.

SBI Car Loan Interest Rates:

1 year MCLR rate: 9.25% p.a.

Loan Schemes	Interest Rate for Men
SBI Combo Loan Scheme	9.25% p.a.
NRI Car Loan	9.25% p.a.
Certified Pre-owned car loan	12.65% p.a.

*The figures mentioned above are subject to change. 

The SBI car loan offers both fixed and floating interest rates. Women borrowers are given 0.05% concession on interest rates for all SBI car loan schemes 

The interest rate offered varies on the following factors: 

1. Car loan applicant 
2. Tenure of car loan 
3. Car loan scheme
4. New or pre-owned car

SBI Car Loan Eligibility:

1. An applicant applying for SBI Car loan should be in the age bracket of 21 to 65 years.
2. The minimum net annual income of a salaried professional should be Rs.2 lacs. 
3. A self-employed professional applying for SBI car loan must have a minimum net annual income of Rs.3 lacs.

Documentation:

In order to apply for SBI car loan, customers need to submit a dully filled and signed SBI car loan application form along with necessary documents such as: 

1. Bank account statement of last 6 months.
2. Two passport sized photographs 
3. Any ID proof like Aadhar card, passport, PAN card, voter’s ID card or driving license
4. Income proof (for salaried professionals): salary slips of last 6 months or Form 16 of last 2 years
5. Address proof
6. IT Return for last 2 years (for non-salaried or self-employed professionals) 
7. Profit-loss statement of last 2 years (for non-salaried or self-employed professionals)
8. CA certified Balance sheet (for non-salaried or self-employed professionals)
9. Necessary lad holding documents (for applicants involved in agricultural activities) 
10. Proof of business activity (for applicants involved in agricultural activities)

Frequently Asked questions:

Q.1 I want to transfer my existing car loan to SBI car loan. Which are necessary documents for this process?

For car loan balance transfer, you have to submit the following documents: 

• Foreclosure letter 
• RC
• List of documents submitted to the current lender 
• Insurance copy
• NOC letter from the current lender
• Account statement from the current lender
• Loan sanction letter from the current lender

Q.2 What is minimum annual income required for SBI car loan?

The minimum annual income required for SBI car loan is Rs.2 lacs.

Q.3 From where can I get the SBI car loan application form?

Eligible applicants can download the application form from SBI official website or visit the nearest branch. SBI Car loan can also be applied online through paisabzaar.com