How to Apply for SBI Car Loan – Interest Rates, EMI Calculator, Eligibility

State Bank of India offers its customers the best deal to finance a new car. Are you interested to take SBI car loan and unaware of its features, checklist documents, and eligibility? You landed on the right page. The following post lets you know what car loan schemes do SBI offers, features, EMI calculator, and eligibility criteria.

SBI Car Loan Schemes:

There are various SBI car loan schemes available for SBI customers to meet particular requirements.

• SBI New Car Loan Scheme
• SBI Combo Loan Scheme
• SBI NRI Car Loan Scheme
• SBI Certified Pre-owned Car Loan
• SBI Loyalty Car Loan Scheme
• SBI Nano Youth Car Loan Scheme

SBI Car Loan Features:

• The applicant can avail car loan if the age is between 21 years to 65 years.
• SBI offers maximum vehicle loan amount, which is up to 85% of the on-road price.
• Interest rates on car loans start from 8.70% based on a down payment, net income, and other factors.
• Processing fee includes 0.51% of the car cost i.e., Rs. 1,020 to Rs. 10,200.
• SBI car loans are available at the lowest interest rates and Lowest EMI of Rs. 1,622 per lakh.
• The car loan scheme has the longest repayment tenure of 7 years.
• Rate of Interest is calculated on a daily reducing balance.
• No Advance EMI facility.
• The bank offers optional SBI Life Insurance coverage.
• The SBI Car Loan is available for both salaried and self-employed persons.

SBI Car Loan EMI Calculator

Car loan Equated Monthly Installment (EMI) is a small fixed amount paid by borrowers to SBI for the loan taken. It is the repayment of your loan amount to the SBI bank.

For SBI vehicle loans, the loan tenure is up to 7 years and EMI will be as low as Rs. 1,622 per lakh. Ensure affordable and convenient loan schemes to meet your car needs.

The EMI includes both interest and principal payments. The EMI amount will remain constant while the principal amount goes increasing and the interest amount keeps reducing.

Calculate SBI Cal Loan EMI HERE

The SBI Car Loan EMI Calculator uses the below-mentioned formula to determine car loan EMI-

EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]

In the said formula,

• ‘P’ stands for the principal amount or the loan amount.
• ‘R’ stands for the monthly rate of interest that is applicable.
• ‘N’ stands for the number of instalments.

It must be noted that the formula does not take into account the amount that was extended as pre-payment towards the amount received as SBI car loan.

The example below will help you understand how SBI car loan calculator works –

Mr J availed an SBI car loan of Rs. 5 Lakh at the rate of 8.7% p.a. for a term of 5 years.

By using the above formula,

EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]

EMI= [500000 x 0.725% x (1+0.725%) ^ [(1+0.725%) ^ (60-1)]

EMI= Rs. 10,307

Eligibility Criteria

To avail an SBI Car Loan, you should be an individual aged 21 to 65 years, belonging to one of the following 3 categories:

• State Regular/Central Government employee, Public Sector Undertaking/Private Company having a minimum net annual income of Rs. 2,50,000 can avail of a maximum loan amount of 48 times the net monthly income.
• Professionals/self-employed/businessmen/partnership companies having Net Profit or Gross Taxable income of Rs. 3,00,000/- p.a. can avail 4 times Net Profit or Gross Taxable income as the maximum loan amount.
• Agricultural and allied activities person can avail of a maximum loan amount of 3 times of net annual income of a minimum of Rs. 4,00,000.

Documents to Apply for SBI Car Loan

Here is the checklist of the documents needed to apply for an SBI car loan.

• Age Proof
• Identification proof
• Duly filled application form
• Passport size photograph
• Residence Proof
• Income/Salary proof
• Bank statement
• Signature verification proof

Frequently Asked Questions:

Thus avail SBI car loan and enjoy its economic features right now!