SBI Auto Loan

With SBI auto loans, you can avail the best deal for financing your vehicle. Enjoy a hassle-free ride with the lowest interest rate, minimum paperwork, and fast disbursement of loans. High-Value SBI auto loans are available at competitive rates.

 

Features of SBI Auto Loans

  • Extremely competitive interest rate and lowest EMI
  • Repayment tenure up to seven years
  • Financing on On-Road price
  • Interest calculation on daily reducing balance
  • Loan facility for all types of vehicles like cars, bikes, multi-utility vehicles, etc.
  • Optional life insurance coverage

Types of SBI Auto loans

  • SBI new Car loan
  • Certified pre-owned car loan
  • SBI loyalty car loan for existing home loan borrower
  • Superbike loan for two-wheeler loan of Rs. 2.50 lac and above
  • SBI assured car loan scheme for existing term deposit customers

Auto Loan

An auto loan is a secured loan offered against your vehicle as collateral. An individual can avail of an auto loan for buying a car or any other vehicle. The vehicle acts as the guarantee, therefore you don’t have to provide any other asset to a mortgage. You get an upfront payment, and you can conveniently repay the loan amount through equated monthly installments.

 

Eligibility for auto loans

Most lenders offer auto loans to all individuals aged between 21 to 60 years, like salaried employees, self-employed professionals, businessman pensioners, farmers, traders, etc. Apart from that, you should have a good credit score. Anything above 750 is considered a good credit score for an auto loan. Your credit score indicates your creditworthiness. An applicant should have a steady annual income of at least Rs. 2 lac.

 

Auto loan interest rate

In India, auto loans are offered at a fixed and floating rate of interest.

Fixed-rate of interest remains constant throughout the loan tenure.

The floating rate of interest varies from time to time depending on the changes in government rules and policy, supply of money, etc.

Currently, the auto loan rate is varying between 7% to 10%. The interest rate also depends on several factors like

 

Credit Score

If your credit score is high, you will be able to borrow at a lower rate of interest because your creditworthiness makes your application less risky for the lender.

 

Repayment tenure

Most of the lenders offer a discount in interest rate if you take the loan for short time.

 

Income level

If the borrower has a high and steady income, the lender is likely to provide a low-interest rate. It indicates that you won’t have any difficulty in repaying the loan.

 

Loan amount

Some of the lenders provide benefits in case of a high loan amount.

 

Relationship with the lender

If you have a good pre-existing relationship with your lender, you can negotiate for a lower interest rate.

 

Best auto loan providing companies

 

Axis Bank

ICICI Bank

HDFC Bank 

Federal Bank

Andhra Bank

 

Auto loans prepayment 

Prepayment of an auto loan refers to partial or full payment of an auto loan before the completion of the tenure. It is important to read your documents carefully because some banks don’t permit the prepayment of auto loans for at least one year after the loan is disbursed.

 

The borrower has to pay a prepayment penalty to the lending company. The prepayment charges vary from bank to bank, so it is advised to check the prepayment charges at the time of borrowing.

FAQs

Q. What is a 100% car loan?
Ans. Few lenders also offer to fund the total value of the car, these loans are referred to as 100% car loans. ?
Q. Can I avail myself of an auto loan for buying a second-hand/used car?
Ans. Yes, You can avail of an auto loan for buying a second-hand or pre-owned car.

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