Car Loan SBI

Car Loan SBI

Get your own car through car loan. Car loan is about getting your car on finance through the financing company at particular rate of interest. Car Loan helps you get your owned car by paying monthly EMI which includes the Principal amount and interest amount. Lets Know about SBI Car Loan

Financing company has the hypothecation on the car, in which if there is default in payment of amount financing company has the right to take the lien of the car. After payment of all the dues, the financing company provides a NOC and release the hypothecation from the car.

Car Loan at Lowest Rate Of Interest SBI
Car Loan at Lowest Rate Of Interest SBI






Applicable for all applicants:
  • Completed loan application on prescribed format
  • 3 passport size photographs
  • Proof of identity (any one):
  1. Voters ID card/Aadhar/Passport/Driving license/Pan Card
  • Proof of residence/current address (any one):
  1. Voters ID card/Aadhar/Passport/Driving license/Pan Card
  2. Recent telephone Bill/Electricit Bill/Water Bill/Piped Gas Bill/Property Tax Receipts
  3. Credit Card Statements/Income/Wealth Tax Assessment Order
  • Proof of business address for non-salaried individuals
  • Statement of Bank Account/Pass Book for last six months
  • Personal Assets and Liabilities Statement on Bank’s Standard Format
  • Insurance Copy of the Vehicle (after Car Loan)
  • Copy of Registration Certificate (after Car Loan)
Easy Car Loan SBI
Easy Car Loan SBI
For Guarantor (wherever applicable):
  • Personal Assets and Liabilities Statement
  • 2 passport size photographs
  • Proof of identification as above
  • Proof of residence as above
  • Proof of business address as above
Additional documents required for salaried persons:
  • current pay slip (original salary certificate from employer when pay slip is not available)
  • copy of form 16 or copy of IT returns for last two financial years, duly acknowledged by IT Deptt.
  • Email from the official Email ID of the applicant to confirm employment credentials, wherever applicable.
Additional documents required for Professionals/self-employed/other IT assesses :
  • Acknowledged copies of three years I.T. Returns or Assessment Orders.
  • Audited Balance Sheet will be obtained if gross receipt in one year exceed Rs. 50 lacs in case of customers carrying on profession.
  • Photocopies of challans evidencing payment of Advance Income Tax.
Additional documents required for BUSINESSMEN:
  • Acknowledged copies of three years I.T. Returns or Assessment orders.
  • Balance Sheet for last three years.
  • Audited Balance Sheet will be obtained if total annual sales or turn over or gross receipts exceeds 1 crore in case of customer engaged in business.
  • Copy of Partnership Deed/Memorandum of Association, as the case may be.
  • Opinion report from the respective Bank, if firm/company has availed any credit facility from any Bank.
Individuals engaged in agricultural activities
  • 2 recent passport-size photographs.
  • Last 6 months’ bank statements.
  • Government approved proof of agricultural activity

Processing Fess: Processing fess is 0.50% of loan amount and maximum upto a prescribed limit.

Get Your Dream Car
Get Your Dream Car

Eligibility of car loan SBI

  • Minimum Age 21 years old
  • Maximum Age 65 years old
  • 5 Lakhs for salaried individuals
  • 3 Lakhs for self-employed individuals
  • 4 Lakhs for individuals engaged in agricultural activities.
Cibil :
  • Minimum 600 and above.
EMI/NMI Ratio:
  • 50% for car up to 5 Lakhs
  • 70% for car up to 10 Lakhs

What is an EMI?

The Equated Monthly Instalment (or EMI) consists of the principal portion of the loan amount and the interest. Therefore, EMI = principal amount + interest paid on the Car Loan. The EMI, usually, remains fixed for the entire tenure of your loan, and it is to be repaid over the tenure of the loan on a monthly basis.


Mathematically, EMI is calculated as under:

P x R x (1+R)^N / [(1+R)^N-1]

P = Principal amount of the loan

R = Rate of interest

N = Number of monthly instalments.

So, say you are applying for a Car Loan of Rs 6.50 lakh from SBI Bank at a rate of interest of 9.5% p.a. and your loan tenure is 8 year (or 96 months), your EMI will be calculated as under:

EMI = 650000* 0.007917 * (1+ 0.007917)^96 / ((1+ 0.007917)^96)-1 = Rs 9,692

The rate of interest (R) on your loan is calculated monthly i.e. (R= Annual rate of interest/12/100). For instance, if R = 9.5% per annum, then R= 9.5%/12/100 = 0.007917.

How is the Car Loan EMI to be paid?

You can opt for either of these:

Standing Instructions (SI) can be used if you have a savings account, salary account, or current account with SBI Bank. Your EMI will be automatically debited from the account you specify.

National Automated Clearing House (NACH)/ECS mandate can be used if you do not have an account with SBI Bank and would like your EMIs to be debited automatically at the end of the monthly cycle.

Post-Dated Cheques for your Car Loan EMI is also an option if you do not hold an account with SBI Bank and for non-ECS locations.

Opting for SI or NACH/ECS mode is preferable as it is faster and less prone to errors than PDCs.

Why Choose SBI Bank Car Loan?

The benefits of availing of a car loan from SBI Bank are:

  • Attractive interest rates; get an SBI Bank car Loan starting at 9.25% p.a.
  • Flexibility of amount and tenure: You can get an SBI bank Car loan for amounts starting from Rs. 1 lakh for a period up to 8 years.
  • SBI Bank customers with pre-approved loans, don’t need to deposit income documents and bank statements.
  • Special Benefits for priority banking, Privy Banking and Wealth Banking customers.
car loan at lowest rate
Car Loan at Lowest Rate

Factors affecting Loan Eligibility

  1. Income of the Individuals: Income of the individuals is checked before approving the car loan. SBI checks the eligibility for repayment of car loan amount by assessing the net annual income of the individuals.
  2. The EMI/NMI Ratios : Depending on the car loan scheme chosen by the applicant, SBI takes into consideration the debt-to-income ratio to ensure the individual will be able to pay the monthly installments and will not face financial strain due to the EMI amou
  3. Cibil Score (Credit Score): SBI check the credit eligibility of the individuals. Individual shall have a good Credit score.
  4. Loan Tenure: The smaller the loan tenure chosen by the applicant, the better are the chances of the car loan application being approved.
  5. Age of the applicant: Most SBI car loan schemes have a minimum and maximum age cut-off, with the minimum age being 21 years old and the maximum age set at 65 years old.

Tips to decide right amount of EMIs

  • Ascertain the amount you need to borrow: It is important that before approaching a bank for loan, you need to estimate the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. Also, based on the EMI you can service, try to opt for lowest tenure of loans as long tenure loans result in huge interest outgo.
  • Review your current obligations: Before, taking a loan it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
  • Calculate your SBI car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. SBI provides an LTV upto 85 % of on-road price and expects the borrower to fund the remaining value of property by own money. For example, at its lowest LTV, SBI would expect its borrowers to provide margin money. In case this margin payment is higher than your available funds as estimated by you, you might need to look for higher LTV loans, which may carry higher interest rates and hence, will result in higher EMIs.
    • Multiplier based loan amount eligibility – SBI calculates your loan amount eligibility by applying a multiplier to your net take home salary. This is the simplest method for calculating a loan eligibility used by banks. Generally it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your employer company based on its reputation, stability, size and growth in turnover.
    • FOIR based loan amount eligibility – SBI will also estimate your Fixed Income to Obligations Ratio (FOIR) to ascertain the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. SBI’s assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short term loans to improve your eligibility.



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