State Bank of India has reduced its car loan interest rates by 0.05%, or 05 basis points with effect from Monday, February 10, 2020. This interest rate cut will decrease the cost of funds for those people who want to avail auto loans for buying their new cars.
New Delhi (Delhi, India), February 07, 2020
The State Bank of India (SBI) has reduced its car loan interest rates by 0.05 percent, or 05 basis points with effect from Monday, February 10, 2020.
State Bank of India has revised its new car loan minimum interest rate from 9.00 percent to 8.95 percent per annum (MCLR-1Year + 1.10%) for women applicants and from 9.05 percent to 9.00 percent per annum (MCLR-1Year + 1.15%) for men applicants for up to 84 months loan tenure.
State Bank of India has also revised its used car loan minimum interest rate from 10.30 percent to 10.25 percent per annum (MCLR-1Year + 2.40%) for women applicants and from 10.35 percent to 10.30 percent per annum (MCLR-1Year + 2.45%) for men applicants for up to 60 months loan tenure.
State Bank of India’s current interest rate cut will decrease the cost of funds for those people who want to avail auto loans for buying their new or used cars.
State Bank of India’s car loan interest rate is based on fixed rate of interest with reset period of 1 year and the interest amount is computed on a monthly reducing method.
The auto loans or car loans interest rate of State Bank of India is benchmarked or linked to its One-Year MCLR (Marginal Cost of Funds based Lending Rate). State Bank of India’s current One-Year MCLR, which is called MCLR-1Y, is 7.85 percent per annum with effect from Monday, February 10, 2020.
The minimum borrowing amount for State Bank of India’s car loan is ₹100,000 and maximum car loan amount is ₹2,000,000. The maximum quantum of State Bank of India’s new car loan is up to 90% of ex-showroom value or up to 85% of on-road price of the vehicle. The maximum borrowing limit for State Bank of India’s certified pre-owned car loan is up to 60% of market value of the car.
For getting State Bank of India’s car loans, minimum income eligibility criteria for salaried individuals is (1) minimum net annual salary of ₹96,000 based on latest Salary Slip and Form 16, and (2) minimum of 1 year of continuous employment.
For availing State Bank of India’s car loans, minimum income eligibility criteria for self-employed individuals is (1) minimum net annual business income of ₹120,000 based on latest 2 years’ Income Tax Returns, Audited Financials and Computation of Income, and (2) minimum 3 years’ of employment in the Same Line of Business.
The minimum age limit for getting State Bank of India’s car loan sanctioned is 21 years for salaried and self-employed applicants at the time of car loan commencement.
The maximum age limit for receiving State Bank of India’s car loan approval is 58 years for salaried and 65 years for self-employed applicants at the time of car loan maturity.
State Bank of India’s car loan processing fee is 0.50% of the car loan amount approved. The minimum processing fee for State Bank of India’s new car loan is ₹1,000 and maximum is ₹1,500 exclusive of GST. The minimum processing fee for State Bank of India’s used car loan or certified pre-owned car loan is ₹450 and maximum is ₹9,100 in addition to applicable GST.
State Bank of India’s documentation charges for a new car loan or used car loan is ₹500 inclusive of GST.
A foreclosure or pre closure charge for State Bank of India’s car loan is 5% of the principal outstanding plus GST amount. State Bank of India allows pre closure or foreclosure of the car loan only after 180 days from the date of loan disbursement.
State Bank of India’s part payment or prepayment penalty for car loan is 5% of the part payment amount plus applicable GST. The minimum amount should be equal to one EMI and maximum amount should not be more than 25% of the balance principal in one year.
EMI late payment charge for State Bank of India’s new car loan is minimum 2% penal interest per year over and above the applicable interest rate on the EMI outstanding amount for the period of default.
There are three options for making State Bank of India’s car loan EMI payments: (1) Standing Instruction (SI), (2) Electronic Clearing Service (ECS), or (3) Post-Dated Cheques (PDCs).
The bounce charges for State Bank of India’s car loan EMI cheque, SI, or ECS default is ₹500 plus applicable GST per instance.
The minimum loan tenure for State Bank of India’s new car loan and used car loan is 12 months, while maximum loan period for State Bank of India’s new car finance is 84 months and for certified pre-owned car loan is 60 months.
For State Bank of India’s car loan, no guarantor is required. However, for availing State Bank of India’s car loan, hypothecation of the car purchased out of loan amount is compulsory as loan security.
State Bank of India New Car Loan Interest Rate for Women: 8.95% Per Annum (MCLR-1Year + 1.10%)
State Bank of India New Car Loan Interest Rate for Men: 9.00% Per Annum (MCLR-1Year + 1.15%)
State Bank of India New Car Loan Interest Rate for HUF, Partnership Firms, Trusts, Societies, and Companies: 9.00% Per Annum (MCLR-1Year + 1.15%)
State Bank of India Used Car Loan Interest Rate for up to 3 Years Tenure for Women: 10.25% Per Annum (MCLR-1Year + 2.40%)
State Bank of India Used Car Loan Interest Rate for up to 3 Years Tenure for Men: 10.30% Per Annum (MCLR-1Year + 2.45%)
State Bank of India Used Car Loan Interest Rate for above 3 Years Tenure for Women: 10.25% Per Annum (MCLR-1Year + 2.40%)
State Bank of India Used Car Loan Interest Rate for above 3 Years Tenure for Men: 10.30% Per Annum (MCLR-1Year + 2.45%)
State Bank of India Certified Pre-Owned Car Loan Interest Rate for Up to 5 Years Tenure for Women: 10.25% Per Annum (MCLR-1Year + 2.40%)
State Bank of India Certified Pre-Owned Car Loan Interest Rate for Up to 5 Years Tenure for Men: 10.30% Per Annum (MCLR-1Year + 2.45%)