SBI Car Loan
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1 Comment
SBI is the one of the largest and most trusted banks in India. It is actively involved in community services banking, a non-profit activity, since 1973. The origin of the bank goes back to the first decade of nineteenth century in 1806. The car loan scheme of the bank is divided into two brackets, up to Rs 5 lakh and above Rs 5 lakh. Let’s find out what it offers in both these brackets…
Interest Rates
Interest rates on daily reducing balance are:
Type of loan amount
Interest rates
Below Rs 5 lakh
BR + 2.25%
Rs 5 lakh and above
BR + 2.25%
For NRIs – Below Rs 5 lakh
BR + 4.00%
For NRIs – Above Rs 5 lakh
BR + 3.75%
Used Vehicles up to 3 years
BR + 7.25%
Used Vehicles above 3 years
BR + 7.50%
Charges
Charges^
Amount
Processing charges
0.50% of the loan amount. For Corporate salary Package accounts, only Rs 500 per application.
^Charges are liable to change without notice at the discretion of the financing institution.Other charges have not been disclosed on the website.Flexibility
Eligibility:
Criteria
Limit
Age
21-65 years
Type of employment
A permanent employee of state/ central government, public sector undertaking, private company or a reputed establishment. Professionals, self-employed, businessmen, who pay income tax, and those engaged in agriculture and allied activities, can make use of SBI car loans
Net Annual Income
Rs 1 lakh and above
- Maximum Loan Amount: Loans up to 85 per cent of ‘On-Road’ price of the car, and 90 per cent, in case, the corporate salary account is with the bank, are available. Maximum loan amount available will be 2.5 times of net annual income of an individual. If the spouse becomes co-borrower of the loan, both the incomes will be considered.
- Repayment options:
- You may extend the loan tenure up to 7 years.
- It offers flexibility to pay EMIs anytime, during the month.
- No pre-payment penalty is applicable on loans.
- Time taken for processing: The time taken to complete the process of sanctioning a loan is very long, as compared to the industry standards.
- Special options: Special discounts are available for corporate salary accounts holders.
- Freebies: Free-accidental insurance along with loans is available.
Example
Loan amount: Rs 4 lakh
Interest rate: 9.25% + 2.25% =11.50 (Base Rate of SBI is 9.25%, as on 28 May 2011)
Tenure in months: 36 months
Repayment schedule
Repayment amount (In Rs)
Interest repayment (In Rs)
Principal repayment (In Rs)
Year 1
1,58,285
39,888
1,18,396
Year 2
1,58,285
25,532
1,32,753
Year 3
1,58,285
9,434
1,48,976
EMI calculated: Rs 13,190
You end up paying: Rs 4,74, 854
Other Details
- Pre-Sales Information: The sales information given on the website is not very clear and detailed. The charges involved in processing of the loan including administration charges, etc., and in case of additional services, have not been mentioned.
- Customer Support: For clearing of customer grievances, the contact numbers and email addresses of local head officers have been given on the website. Customer care is also in place, although the information provided by them is not up to the mark.
Documents Required
- Statement of bank account of the borrower for last 12 months
- 2 passport size photographs of borrower(s)
- Signature verification from bankers of borrower(s)
- Copy of passport /voters ID card/PAN card
- Proof of residence
- Latest salary-slip showing all deductions
- I-T returns/Form 16 of 2 years for salaried employees, and 3 years for professional/ self-employed/businessmen, duly accepted by ITO, wherever applicable to be submitted
- Proof of official address for non-salaried individuals.
Ratings
@ Customer service levels are adjudged through number and types of consumer complaints across consumer forums, user reviews, blogs and sample customer care calls.Parameter
Rating out of 5
Speed of processing
2
Documentation
3
Customer service
3
Value for money
3.5
Overall
3
Published on June 1, 2011 · Filed under: Car Loan; Tagged as: Car Loan, SBI car loan, SBI car loan charges, SBI car loan interest rate
One Response to “SBI Car Loan”
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Pradeep chauhan said on June 28th, 2011 at 11:09 am
Well Nationalised banks:- They are clear and honest with their 'term and conditions'. Most trusted bank [sbi] doesn't waste consumer's time but to make sure you clear all your liability with Benefits and hasseles free.
As per me Documentation is the only thing they take some time, if you complete as mentioned above. Your loan is good to go.
The idea is: Use private banks fo Atm withdrawl and Net banking but For laon always go to Government bank as they are Truthfull.
Good luck for you all
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