Owning a car is more than just a status symbol — it’s a necessity for many, especially in growing cities and towns. However, purchasing a car outright often requires a significant financial outlay, which isn’t always feasible for middle-class families or young professionals. That’s where car loans come into the picture.
Among the many banks offering auto financing in India, the State Bank of India (SBI) remains one of the most trusted options. Known for its transparency, lower interest rates, and flexible repayment options, SBI’s car loan product is a solid choice if you’re looking to buy a vehicle without putting your savings at risk.
Table of Contents
Summary Table: SBI Car Loan Overview
Parameter |
Details |
|---|---|
Loan Provider |
State Bank of India (SBI) |
Interest Rate |
Starting from 9.10% (may vary based on CIBIL score and income) |
Loan Amount Example |
₹7,00,000 |
Loan Tenure |
Up to 7 years |
EMI for ₹7 Lakh (5 Years @9.10%) |
Approx. ₹14,565/month |
Total Repayment (5 Years) |
₹8,73,891 (includes ₹1,73,891 interest) |
Processing Fee |
Up to 0.20% of the loan amount (Minimum ₹500 and Maximum ₹10,000) |
Foreclosure Charges |
Nil after 2 years |
Prepayment Charges |
None |
Eligibility Age |
21–65 years |
Official Website |
Why Choose SBI for a Car Loan?
SBI car loans come with features that make them a top pick among car buyers. Here’s why SBI is considered one of the best choices:
- Competitive Interest Rates starting from 9.10%
- Daily reducing balance method for interest calculation
- Financing available for new passenger cars, MUVs, SUVs
- EMI options as low as ₹14,000+ for a ₹7 lakh loan
- No hidden charges and transparent processing
- Flexible repayment tenure of up to 7 years
- No prepayment or foreclosure penalty after 2 years
Example: EMI Calculation for ₹7 Lakh Car Loan
To understand how affordable the SBI car loan is, let’s look at an example:
Loan Amount: ₹7,00,000
Tenure: 5 Years (60 Months)
Interest Rate: 9.10% per annum (on reducing balance)
Using this information:
- Monthly EMI: ₹14,565
- Total Repayment Amount: ₹8,73,891
- Total Interest Paid: ₹1,73,891
This example assumes a stable interest rate and standard approval with no delays.
SBI Car Loan Eligibility Criteria
Before applying for a car loan from SBI, ensure you meet the following conditions:
- Age: Minimum 21 years and maximum 65 years at loan maturity
- Employment: Salaried individuals, self-employed professionals, businessmen, or agriculturists
- Income: Must have a regular source of income and ability to repay
- CIBIL Score: A minimum credit score of 650–700 is generally expected
- Other Factors: Existing liabilities, employer reputation, and previous loan repayment history may affect approval
Required Documents for SBI Car Loan
Here is a checklist of documents you’ll need:
Identity Proof (any one):
- Aadhaar Card
- PAN Card
- Passport
- Voter ID
Address Proof (any one):
- Utility Bills
- Aadhaar Card
- Passport
Income Proof:
- Salary slips (last 3 months)
- Form 16 or IT returns (last 2 years for self-employed)
- Bank statements (last 6 months)
Other Required Documents:
- Proforma invoice or quotation of the car from the dealer
- Passport-size photographs
- Duly filled application form
How to Apply for a Car Loan from SBI
You can apply for an SBI car loan both online and offline. Here’s how:
Online Application:
- Visit https://sbi.co.in
- Navigate to “Loans” > “Auto Loan”
- Click on “Apply Now”
- Fill in your personal and financial details
- Upload required documents
- Submit the application
Offline Application:
- Visit your nearest SBI branch
- Get the car loan application form
- Attach all required documents
- Submit the form to the loan officer
- Wait for verification and approval
Once approved, the loan amount is directly disbursed to the car dealership.
Additional Benefits of SBI Car Loan
- 100% financing of the on-road price in some cases (including insurance and registration)
- Option for women applicants to avail lower interest rates
- No guarantor required if eligibility criteria are met
- Car loans available even to existing loan holders, provided repayment record is clean
- Online EMI calculators available on SBI’s official site to help plan your finances
FAQs: SBI Car Loan for ₹7 Lakh
Q1. What is the minimum and maximum amount I can borrow through SBI for a car?
SBI provides car loans ranging from ₹1 lakh to several crores, depending on the vehicle type and your eligibility.
Q2. Can I prepay the loan early?
Yes, SBI allows prepayment of car loans without any penalty, especially after 2 years.
Q3. Will SBI finance used cars too?
No, the standard SBI car loan applies to new vehicles only. Used car financing is offered under a separate product.
Q4. How long does it take to process the car loan?
Once the application and documents are submitted, the approval process typically takes 2 to 5 working days.
Q5. Can I apply for the loan jointly with a family member?
Yes, SBI allows joint applications with a co-applicant to increase loan eligibility.
Official Resources
- SBI Car Loan Page: https://sbi.co.in/web/personal-banking/loans/auto-loans
- Loan Application: https://onlineapply.sbi.co.in
- EMI Calculator: https://sbi.co.in/web/personal-banking/emi-calculator
Conclusion
A car loan from SBI is a smart financial choice if you’re planning to buy a vehicle and want manageable EMIs and flexible repayment options. With interest rates starting from 9.10%, zero prepayment charges after two years, and coverage of the full on-road cost, SBI’s car loan offers one of the best deals in the market.
Before applying, compare EMIs using SBI’s online tools, gather your documents, and ensure your CIBIL score is in good shape. This way, you’ll secure your loan with ease and drive away in your dream car with peace of mind.
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