State Bank of India (SBI), India's largest lender, is a renowned name in the car financing space with a share of 22%, as per the latest data. SBI, with an exten-sive branch of over 18,000 and ATM network of 50,000, is just the alternative you need to get the key of your dream car, right! You can enjoy your bonhomie with SBI in the course of your loan journey by not having to pay any processing fee and foreclosure charges. The attractive interest rates, longest loan tenure and flexible repayment options can only make your association with the public lender grow stronger with the days.

SBI Car Loan Interest Rates

Particulars Description
Interest Rate For Women-9.20% p.a.
For Others-9.25% p.a.
Processing Fee NIL for New Cars
1% of the Loan Amount for Old Cars
Foreclosure Charges NIL
Loan Tenure 1-7 Years for New Cars
1-5 Years for Old Cars

Who is Eligible for SBI Car Loan?

Salaried, self-employed businessmen & professionals, partnership firms or even the agriculturists can apply for SBI car loan. The loan is applicable on new as well as pre-owned cars, which can also be called as old or used cars in the catego-ry of passenger cars, multi-utility vehicles (MUVs), sports utility vehicles (SUVs) or others.

How Much Loan Can You Get to Buy Your Dream 4-Wheeler?

SBI offers a loan amount upto 85% of the on-road price in the case of new cars. The on-road price is the summation of ex-showroom price along with the costs of registration, road tax, insurance and accessories, if any. As for used cars, an amount equivalent to 80% of the valuation amount can be funded by the bank. So, keep these facts in your mind while you transact to crack the best deal with the car dealer.

SBI Car Loan Interest Rates Based on MCLR

Came 1st April, 2016, came the introduction of Marginal Cost of Lending Rate (MCLR), an interest rate calculation methodology which was derived by the Re-serve Bank of India (RBI) to ensure better transmission of the rate cut by the cen-tral bank to the end consumers. MCLR is applicable on new floating rate car loans of SBI. Want to have a snapshot of the bank's MCLR? Check out the table below.

Particulars Interest Rates
1-Year MCLR 8.00%
SBI New Car Loan Scheme 0.70%-0.75% Above 1-Year
MCLR=9.20%-9.25% p.a.
SBI Combo Loan Scheme 0.70%-0.75% Above 1-Year
MCLR=9.62%-9.25% p.a.
NRI Car Loan Scheme 0.70%-0.75% Above 1-Year
MCLR=9.20%-9.25% p.a.
Certified Pre-owned Car Loan Scheme 4.15% Above 1-Year
MCLR=12.65% p.a.
SBI Loyalty Car Loan Scheme 0.60%-1.95% Above 1-Year
MCLR=9.10%-9.15% p.a.
SBI Assured Car Loan Scheme 0.70%-0.75% Above 1-Year
MCLR=9.20%-9.25% p.a.

SBI Car Loan Eligibility Criteria

SBI has set specific eligibility criteria for salaried, self-employed and agricultur-ists to obtain a car loan. You can catch all that in the table below.

Criteria Salaried Self-employed Agriculturist
Age 21-65 years 21-65 years 21-65 years
Income Net annual salary of the applicant and/or co-applicant, if any, together should atleast be ₹ 3 lakhs Net profit or gross taxable income of ₹ lakhs per year (You can club the income of co-applicants such as your spouse, son, daughter, sister or brother) Net annual income of applicant and/or co-applicant, if any, must  come out to be ₹ 4 lakhs
Max. Loan Amount 48 times of net monthly salary 4 times Net Profit or Gross Taxable income as per ITR after adding back depreciation and repayment of all the existing loans running in your account 3 times of net annual income

SBI Car Loan Eligibility Calculator

The loan amount eligibility, to a larger extent, depends upon the income and re-payment capacity of an individual. To know the specific amount that SBI can ex-tend you as a loan, you have to use the bank's car loan eligibility calculator. Do you know the function of the calculator? If No, then you have come to the right platform to understand and use the calculator, which will first calculate per lakh EMI based on the loan tenure and the existing interest rate. The per lakh EMI calculation is shown below for you to glance at.

Amount- ₹ 1,00,000
Loan Tenure-7 Years
Interest Rate-9.20%-9.25% p.a.
Per Lakh EMI- ₹ 1,619-1,622

Subsequent to arriving at per lac EMI, the immediate focus of the lender turns on to check the income and savings of an individual. Just in case you are bringing home a net salary of ₹ 60,000 and save around 50% of the same i.e. 30,000. SBI will consider your savings as an effective tool and think that it can be used to pay the EMIs. The lender will then put your savings & per lakh EMI in the calcu-lator and compute your loan amount eligibility by using the following formula.

Loan amount eligibility-
- ₹ 1,00,000 x savings/per lakh EMI
- ₹ 1,00,000 x 30,000/1,619= ₹ 18.52 lakhs
- ₹ 1,00,000 x 30,000/1,622= ₹ 18.50 lakhs

Hence, SBI can finance you within a range of ₹ 18.50 lakhs-18.52 lakhs to buy your dream car. With this loan amount, you have the luxury to choose from a list of high-profile cars, such as Volkswagen Jetta, Skoda Octavia, Toyota Innova Crysta, Mahindra XUV 500, etc.

SBI Car Loan EMI Calculator

Shouldn't you spare some time to check the EMIs payable towards your car loan? I guess, you should. After all, it's the question of your hard-earned money. EMIs, the abbreviated form of Equated Monthly Installments, constitute a sum that keeps going out of your pocket till the time loan is paid off fully. Longer the tenure, more will be the number of EMIs and vice-versa. The longer loan tenure takes out a much larger sum of interest from your pocket compared to when the loan is granted for a shorter period. The amount of EMI is comparatively lower in a longer tenure as opposed to a shorter period. Just look at your purse and see if you can deal with higher EMIs to prevent the excessive outflow of interest from your bank balance. If you can, having a shorter loan tenure would prove benefi-cial.

For example- You want to buy Hyundai Creta 1.4 CRDi L whose on-road price is approximately ₹ 13 lakhs. If SBI finances you upto 85% of the said price i.e. ₹ 11,05,000, what will be the EMIs that you have to pay to own the Hyundai model, any idea? In case you do not know the answer, you can take a look at the table below.

Loan Amount (In Rs.) Loan Tenure (In Years) Interest Rate (In % p.a.) EMI (In Rs.) Total Interest (In Rs.) Total Payment (Principal+Interest) (In Rs.)
11,05,000 1 9.20-9.25 96,736-96,762 55,837-56,144 11,60,837-11,61,144
11,05,000 2 9.20-9.25 50,583-50,608 1,08,994-1,09,604 12,13,994-12,14,604
11,05,000 3 9.20-9.25 35,242-35,267 1,63,699-1,64,627 12,68,699-12,69,627
11,05,000 4 9.20-9.25 27,603-27,629 2,19,945-2,21,208 13,24,945-13,26,208
11,05,000 5 9.20-9.25 23,045-23,072 2,77,723-2,79,337 13,82,723-13,84,337
11,05,000 6 9.20-9.25 20,028-20,056 3,37,022-3,39,003 14,42,022-14,44,003
11,05,000 7 9.20-9.25 17,891-17,919 3,97,827-4,00,192 15,02,827-15,05,192

SBI Car Loan Documents

Proofs Salaried Self-employed
Passport Size Photographs Applicable Applicable
Identity Proof Either of PAN Card, Passport, Voter ID, Driving License Either of PAN Card, Passport, Voter ID, Driving License
Residence Proof Passport/Voter ID, Electricity Bill/Telephone Bill Passport/Voter ID, Electricity Bill/Telephone Bill
Income Proof Latest Salary Slip, Form 16 or ITR for the Past Two Years Last 2-year ITR, Profit & Loss Account Statement and Audited Balance Sheet for 2 Years, Sales Tax Certificate/Copy of Partnership/SSI Registered Certificate/Shop & Establishment Certificate
Bank Account Statement Past 6-month Bank Statement Past 6-month Bank Statement

SBI Car Loan Application Form

Applying for SBI Car loan is easy and comfortable for the prospective borrowers due to the bank's increasing outreach domestically and internationally. You can either go online or visit the SBI branches, which are huge in numbers, to apply for a car loan. The most convenient of the options is visiting the official website of the bank and clicking the section of car loan thereof. As soon as the car loan page opens, click 'Apply Now Online'. You will then get directed to the page with a default tick on the existing relationship with the bank. If you have the relation-ship with the lender, you then should select the right option along with your con-tact details. The moment you do the same, a car loan application form will ap-pear, asking you to furnish relevant details along with the required documents for the bank to do the rest. However, if you do not have any existing relationship with SBI, then you must tick 'No' to get directed to the application form page and then do the same as you would have in the 'Yes' option.

Now come the inspection of SBI with respect to your car loan application. The bank will scrutinize your identity, income and address details and disburse a loan only if you pass the investigation.

SBI Car Loan Customer Care

It is possible that you can have queries related to a car loan at SBI. If it is the case with you, a call to 1800 425 3800 can erase all your problems and help you enjoy a solid car loan journey with SBI. Be it the loan application status, loan disbursal, payment of EMIs or details of interest outgo, you can get all your que-ries resolved by talking to the customer care executives on the number stated above.