The SBI offers all types of loans for the all category of customers. In this post, we are going to discuss about the SBI car loan in a quick glance.
SBI car loan
This loan is to purchase a new passenger car, jeeps, multi utility vehicle or SUV.
Who can avail this loan?
- The employees of State or Central Government, Public Sector Undertakings, Corporations, private sector companies, and reputed establishments.
- Professionals, Self-employed, Businessmen, proprietary or partnership firms and others who are income tax assesses.
- Persons engaged in agriculture and allied activities can also avail the car loan (Income Tax return is not required in case of agriculturists).
- The customer must be in the age range 21-65. And the loan should be fully repaid by the customer before 70 years of age.
- There can be a maximum of two applicants for a loan.
Is there any minimum income for the employees to avail this loan?
For salaried people, the net annual income should be INR 2,50,000/-(income of an applicant or co-applicant or together).
For Self-employed, professionals and Proprietary/Partnership Firms, the net profit or gross taxable income should be INR 4,00,000/- (the income of co-applicant can be clubbed together).
How much loan can I avail?
For salaried, the maximum loan amount is 48 times of the net monthly income.
For Self-employed, professionals and Proprietary/Partnership Firms the maximum loan amount is 4 times net profit or gross taxable income as per ITR.
For agriculturists the maximum loan amount that can be availed is 3 times the net annual income.
What about Margin amount, Rate of interest and repayment period?
The customer should pay the margin amount of 15% of the on-road price of the vehicle, the present rate of interest for the car loan in SBI is 9.3%-9.8% and it is the minimum rate as compared to all the banks in India.
Repayment period for the all car loan is maximum 7 years now.
No pre-payment penalty will be charged.
Documents to be submitted for the loan
The following documents are mandatory to avail this loan
- Statement of Bank account of the borrower for last 6 months.
- 2 passport size photographs of the borrower(s).
- PAN and Aadhar card
- Proof of residence – Passport, Tax receipts, Telephone bill, EB bill etc. (in case of difference in Aadhar address)
- Last 3 months salary-slip showing all deductions.
- I.T. Returns/Form 16: for last 2 years for salaried employees.
- 3 years IT returns for professional/self-employed/businessmen. IT return not mandatory for Agriculturist.
- Existing loan account statement for the past 6 months and Post dated Cheques for repayment and 6 Post dated Cheques for covering the loan amount.
Hope this information helps you to avail a car loan in SBI, in case you need a car!