The country’s largest lender, State Bank Of India (SBI) offers a car loan program with a repayment term of up to 7 years, according to its website sbi.co.in. This type of loan can be used to purchase all types of passenger cars, multiple utility vehicles and SUVs (Sports Utility Vehicles). No prepayment penalty and no EMI advance (equivalent monthly payments) are required to qualify for the SBI car loan. SBI charges an interest rate of 9.30 percent to 9.80 percent for auto loans, according to its website.
Here are 5 things to know about the SBI auto loan program:
A regular employee of the state / central government, public sector company, private company or reputable establishment where the annual net income of the applicant and / or co-applicant, if applicable, is d At least Rs 2,50,000 can apply for an SBI car loan. The maximum loan amount that can be granted in this case is 48 times the net monthly income, according to the SBI.
Professionals, self-employed, businessmen, owner / associated companies who are income taxes assess when the net profit or gross taxable income of the applicant is Rs 4,000,000 per year (co-applicant’s income can be grouped) can also request this scheme. The maximum loan amount that can be granted in such a case is 4 times the net profit or the taxable gross income according to the ITR (income tax rules) after adding the amortization and repayment of all existing loans, according to the SBI.
People engaged in agricultural and related activities whose net annual income of the applicant and / or co-applicant together is at least Rs 4,000,000 are also eligible for the SBI car loan program. The maximum loan that can be given in such a case is 3 times the annual net income.
SBI offers 90 percent finance of the road price of the vehicle in case the applicant’s net annual income is up to Rs 10 lakh or more than 10 lakh. The on-road price is the price the customer actually pays for the car and includes registration, insurance and warranty extension or the total service package or the annual maintenance contract or the cost of accessories, depending on SBI.
An overdraft facility and optional SBI life insurance coverage are available with the SBI auto loan program.