State Bank of India Car Loan

SBI Car Loan Fees and Charges

ChargesSBI Car Loan Scheme
Processing fee
  • NIL for most of the plans except for the SBI Certified Pre-Owned Scheme where the processing fee will be
    • If loan amount is up to Rs.6 lakh – Rs.1,000 + GST
    • If loan amount is more than Rs.6 lakh – Rs.1,500 + GST
Vehicle search charges per search
  • Rs.50
Pre-payment penalty
  • If pre-payment is done within 36 months of loan disbursement – 1% + GST
Foreclosure charges
  • 3% + GST
  • Up to 90% of the car’s ‘On-Road Price’

SBI Car Loan Eligibility

To be eligible for an SBI New or Used Car Loan, applicants must adhere to the below-mentioned car loan eligibility criteria:

  • Applicant/individual must be aged between 21 years and 65 years.
  • The applicant must be either a Central/State Government employee, a professional or self-employed individual, or an individual who is engaged in agricultural and allied activities.

Factors Affecting SBI Car Loan Interest Rates

SBI offers high-value car loans to its customers with the interest rates offered for new and used SBI car loans ranging between 9.00% and 9.70%. The SBI Car Loan interest rate that you are eligible for will be dependent on various factors, some of which have been mentioned below:

  1. Income-to-Debt Ratio – This is one of the primary factors that lenders take into consideration while determining the rate of interest. It basically is an indicator of the amount of money you owe to different entities. It is always recommended to have a low income-to-debt ratio as it denotes your capacity to make EMI payments on a monthly basis, without any delays.
  2. Market Fluctuations - Interest rates tend to change along with the performance of the market. Inflation also plays a major part in determining the interest rates. If the inflation rate goes up, then rates might increase and if the inflation rate goes down, then car loan interest rates might decrease. Other market conditions might also affect interest rates offered by the lender from time to time. Hence, customers should be completely aware of the prevailing market conditions when they opt for a car loan.
  3. Vehicle’s Age – When you borrow a car loan, the vehicle being financed basically acts as a collateral for the entire tenure of the loan. In case you default on the payment of the EMI, the bank can hold onto your vehicle, in order to balance out the outstanding dues. This is the reason why lenders and banks take into consideration the model and age of the vehicle while determining the rate of interest.
  4. Applicant’s income and occupation – In addition to the credit score of the applicant, his/her income and occupation type are also taken into consideration while determining the rate of interest. Banks typically prefer applicants that have a steady source of income as it indicates their capacity to make repayments without defaults.
  5. Repayment tenure: The repayment tenure that is the time given to the applicant to repay their loan amount will also determine the interest rate levied on their loan amount. Longer the repayment tenure, higher will be the interest rate charged on the loan amount.
  6. Relationship with your bank: The applicant’s relationship with the bank will also determine the rate of interest levied on the bank. It is always recommended that the applicant avails a car loan from the bank where he/she holds a bank account. The bank finds it easier to provide loan to a person who has been a customer of the bank for a very long time. Hence, there is a very good chance that the applicant will get a car loan at a lower interest rate.

How to Increase Your Eligibility for SBI Car Loan

Some of the ways through which you can increase your eligibility for SBI Car Loan are given below:

  • Have a good credit score: It is important to maintain a good credit score in order to improve your eligibility for SBI Car Loan. It I always recommended that you maintain a credit score of 750 and above as it gives the lender the impression that you will be able to repay the loan on time.
  • Shorter tenure: It is always recommended that you go for a shorter tenure while availing a car loan. Shorter tenure also means that a lower interest rate will be levied on the loan amount. The chances of your loan getting approved is higher if you go for a shorter repayment tenure as it means that you will have to pay back the loan amount quicker.
  • Apply for a lower loan amount: It is easier for a bank to approve your loan if your loan amount is low. This means that not only will a lower rate of interest be charged on the loan amount but since the loan amount is low, the bank finds it comfortable allowing you to avail the car loan.
  • Maintain a low debt-to-income ratio: The bank checks debt to income ratio before allowing to avail a car loan. If there is a significant balance between your income and your expenses, then the chances of you availing a car loan at a lower interest rate increase.

Car Loan Schemes Provided by SBI

The list of car loan schemes provided by SBI is given below:

  • SBI New Car Loan Scheme: This scheme is suitable for those who wish to purchase a new car for themselves. The repayment tenure is up to 84 months and the applicant is also offered an optional SBI Life Insurance Cover.
  • Certified Pre-owed Car Loan Scheme: This scheme is for those who wish to purchase a pre-owned car for themselves. The minimum loan that one can avail is Rs.3 lakh and the maximum loan amount being Rs.10 lakh. The repayment tenure can be either 5 years, or 8 years minus the age of the vehicle.
  • SBI Loyalty Car Loan Scheme: Customers who have availed a home loan from SBI have the option of availing this scheme and purchase a car of their choice. The repayment tenure under this scheme is 7 years, and the minimum income criteria the applicant will have to fulfil is Rs.2 lakh.
  • SBI Assured Car Loan Scheme: If a customer has opened a fixed deposit account in a branch of SBI, then he/she can avail this car loan scheme. The repayment tenure ranged between 3 years and 7 years depending on the loan amount. The margin under this scheme is 100% of the fixed deposit or the on-road price of the vehicle. The minimum loan amount one can avail is Rs.2 lakh.
  • SBI Car Loan Lite Scheme: Businessmen, agriculturists, and self-employed people under ‘Tatkal Tractor Scheme’ who are engaged in business which provides them income but have no proof to show for the same can apply for this scheme. The maximum loan amount that one can avail under this scheme is Rs.4 lakh, and the maximum repayment tenure is 5 years.

How to Calculate EMI on SBI Car Loan

Before you avail a car loan from SBI, you may want to know how much amount you will be paying towards the loan each month. This is simply known as EMIs or equated monthly instalments and it offers an easy way to repay your car loan. By calculating the EMI, you will be able to budget your monthly expenses better.

You can calculate the EMI for your car loan by using the below-given formula:

E = P*r*[(1+r) ^n/((1+r) ^n-1)]

In the above formula, E denotes the EMI, P the principal amount, r the interest rate and n the number of years or tenure of the loan.

You can also calculate the SBI Car Loan EMI by using the EMI Calculator tool wherein you just need to enter the loan amount, interest rate, repayment tenure, processing fee, etc. The tool will calculate the EMI and display it to you.

SBI Car Loan EMI Calculator

Comparison for Car Loan Interest Rates of Top Banks with Lowest EMI for 7 Years

Name of the BankInterest Rate (p.a.)Lowest EMI per lakh for 7 years
State Bank of India9.00% and 9.70%Rs.1,609
HDFC Bank10.35% to 11.10%Rs.1,642
Axis Bank9.25% onwardsRs.1,622
ICICI Bank9.30% - 12.85%Rs.1,624
YES Bank9.75% onwardsRs.1,647
Canara Bank8.80% - 9.45%Rs.1,599
Punjab National Bank8.90% - 9.35%Rs.1,604
Central Bank of India7.05%Rs.1,512

How to apply for SBI Car Loan

There are two ways through which you can apply for an SBI Car Loan online:

  1. Through You can visit the Creditupchar’s official website and follow the process given below:
    • Visit the Creditupchar’s official website.
    • Click on the ‘Loans’ tab, and under it click on ‘Car Loan’s.
    • You will be directed to a separate page where you will be shown the list of car loans offered by various banks including SBI.
    • You can click on ‘Explore’ to know more in detail regarding the features and benefits of the car loan scheme.
    • Once you are sure that the car loan scheme offered by SBI is suitable for you, you can click on ‘Apply Now’.
  2. Applying by visiting the official website of the bank: You can visit the official website of SBI and apply for a car loan of your choice. You will have to upload the necessary documents and once the bank verifies it and is satisfied that all the documents submitted by you is correct, the loan amount will be disbursed to your bank account instantly.

Documents Required for SBI Car Loan

The applicant must submit the below-mentioned documents alongside the completed application form:

Salaried Individuals:

  • Bank account statement for the preceding 6 months
  • 2 passport size photos
  • Proof of address
  • Identity proof
  • Proof of income: Latest pay slips, Form 16
  • Income Tax Returns or Form 16 for the preceding 2 years


  • Bank account statement for the preceding 6 months
  • 2 passport size photos
  • Proof of address
  • Identity proof
  • Proof of income: Income Tax Returns for the preceding 2 years
  • Form 16 for the preceding 2 years
  • Audited Balance Sheet
  • P&L statement for preceding 2 years
  • Sales Tax Certificate
  • Partnership Copy

Individuals Engaged in Agricultural and Allied Activities:

  • Bank account statement for the preceding 6 months
  • 2 passport size photos
  • Proof of identity
  • Proof of address
  • Direct agricultural activity
  • Allied agricultural activity (poultry, dairy, plantation, horticulture): Evidential proof of the activities running must be provided

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