All You Need to Know about SBI’s Used Car Loan Scheme

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SBI or State Bank of India, one of the leading financiers in India, offers special car loan scheme to allow customers to purchase a second-hand car with ease. You can use this loan scheme for the purchase of any second-hand SUVs, MUVs that are not older than 5 years. On top of that SBI Used Car Loan interest rate is comparatively lower and has easy repayment options as well which make this one of the most popular loan schemes of this category.

car-loan-2
SBI Car Loan

Features and Benefits of this SBI Loan

This used car loan offers:-

  1. Easy payment options
  2. The SBI car loan interest rate is very affordable
  3. Zero advanced EMI
  4. Flexibility to pay the EMI anytime in a month
  5. Mere 2% of pre-payment penalty
  6. Interest Calculated on Daily Reducing Balance
  7. Optional SBI Life cover available to applicants
  8. 7 years of longest repayment tenure
  9. LTV up to 85% of the car’s on-road price including registration, insurance, and accessory items of up to Rs 25, 000
  10. Processing fee is also low and equals 0.51% of loan amount sanctioned

Eligibility Criteria for the Scheme

Private and public sector employee

  1. Gross yearly earnings of the applicant and co-applicant (if any) for SBI car loan should be not less than Rs. 3,00,000/-
  2. The maximum loan amount should be 48 times of the Net Monthly Income

Self-employed, businessmen, proprietor

  1. Gross income (taxable) of the applicant should be Rs. 4 lakhs at least (the income of co-applicant cannot be combined).
  1. The maximum car loan amount sanctioned should be 4 times gross income (taxable) as per ITR after repaying all the existing loans

Person engaged in agricultural and allied activities

  1. Gross Annual income of the applicant and co-applicant collectively should be not be less than Rs. 4,00,000/-
  2. The maximum loan amount should be 3 times of Net Annual Income

Documents Required For This Loan

Salaried

  1. Bank statement of the previous 6 months
  2. A copy any Government identity proof is mandatory for car loan
  3. 2 passport-size photographs
  4. IT Returns or form 16 of last 2 years
  5. A copy of Driving License/ Ration card/ Passport / Voters ID card/Telephone Bill/ Electricity bill/Life Insurance policy as an address proof
  6. Recent salary slips or form 16 as an income proof

Businessmen/proprietor

  1. Bank statement of the last 6 months is required for SBI used car loan
  2. Identity proof – a copy of PAN Card/ Voters ID card/ Passport/ Driving License etc.
  3. Address proof – a copy of Driving License/ Ration card/Voters ID card/Passport /Telephone Bill/ Electricity bill/Life Insurance policy, etc.)
  4. 2 passport size photographs
  5. Income Proof: ITR for last 2 years
  6. T. Returns or Form 16 for the last 2 years
  7. Audited Balance sheet, SSI registered certificate / sales tax certificate / shop & establishment act certificate/ a copy of partnership

Person engaged in Agriculture and allied services (Dairy, Poultry, and Plantation)

  1. Bank statement of the last 6 months
  2. Identity proof – a copy of Passport/ Voters ID card/ PAN Card/Driving License, etc.
  3. Address proof – a copy of Ration card/Voter ID card/ Driving License/Telephone or Electricity Bill/Passport /Life Insurance policy, etc.
  4. 2 passport size photographs
  5. A proof of direct agricultural activity (crop cultivation) showing a cropping pattern and land holding with a photograph.
  6. All land should be on an ownership basis and ownership proof to be in the name of the person applying for the car loan.
  7. Written proof of managed activities.

Repayment: The loan offers the longest repayment period of 84 months to the customer. This means borrowers can enjoy lower EMIs and pay the loan debt without overburdening them.

Processing Fee: SBI charges a flat processing fee on car loans equaling 0.51% of the sanctioned amount in case of second-hand cars.

SBI Used Car Loan Interest rates: The State Bank of India charges 0.45% of over base rate for applicants who are men and for women, the bank charge over the base rate of 0.40% on its used car loans. Interest rates differ widely on loans in case of certified used cars and for loan tenure that exceed 3 years.

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