SBI provides, different car loan schemes in the personal banking sector which attracts many common features. They are listed here with individual details.
Purpose of SBI Car Loan Products
All are considered to be Term loans for purchase of New / Used / Certified Pre-owned passenger cars, Multi Utility Vehicles (MUVs) and SUVs. Used and Certified Pre-Owned car, MUV, SUV upto 5 years old. No financing of old vehicles on the basis of duplicate Registration books. Reimbursement of cost of unencumbered, single ownership vehicle not more than 2 years old
Eligibility for SBI Personal Car Loan
Occupation should be one of:
- Permanent employees of State/Central Govt., Pvt. Sector companies, PSUs, corporations & reputed establishments.
- Professionals/self-employed & others who are IT assessees
- Persons engaged in agriculture and allied activities.
- High net worth salaried executives of multinationals.
Age: 21- 65 years. (for sanction of loan). Loan to be fully repaid before borrower attains age of 70 years. [Loans can be sanctioned to individuals who have sufficient, regular and continuous source of income for servicing the loan repayment beyond 65 years.]
- Salaried: NAI of applicant and/or co-applicant, if any, together to be Rs.1 lac and above. NMI of applicant(s) should be at least 2 times of EMI.
- Self-employed and Professionals: NAI of applicant and/or co-applicant, if any, together to be Rs.1 lac and above for the last year as per income tax return
- Persons engaged in agriculture and allied activities: Same as for Self-employed and Professionals except that income tax return will not be required.
- Regular income from all sources with satisfactory proof considered. Income of spouse / father/ mother/ brother /sister may be included if he/she joins as co-borrower.
Maximum Loan Amount:
- New vehicles: no ceiling.
- Used / refurbished vehicle: Rs.15 lacs.
Max. loan restricted to: 30 times NMI for salaried & 2.5 times NAI for others.
Margin and Total Cost:
For new & used/refurbished vehicles: 15% of ‘on road’ price.
Margins may be reduced in certain cases. Total cost to include onetime road tax, octroi, registration charges, insurance premium and accessories. [Any consumer offer/discounts by the manufacturers / dealers should be reduced from the ‘on-road price’] .
Maximum cost of accessories not to exceed 5% of cost of vehicle or Rs. 25,000 whichever is less.
Repayment Period and Mode of SBI Car Loan
- New vehicles: max.upto 7 years for Salaried and upto 5 years for Self-employed and Professionals
- Old vehicles: Max. repayment period to be fixed as per age of vehicle. Recovery should be such that loan gets repaid within 7/5 years from the date of original sale.
- Old & new vehicles: customer to have option for payment in shorter duration.
Repayment in Equated instalments preferably through check-off for salaried / PDCs where check-off not available / SI / ECS with 6 undated cheques to cover the loan amount.
Customised repayment through equated instalments for agriculturists: Since income of agriculturists is seasonal, the repayment schedule in their case will be aligned with their expected cash flow to reduce chances of default in a/cs. The periodicity of instalments is to be decided upon the merits of each case, on a realistic basis, coinciding with harvest of the crop at half yearly / yearly intervals or coinciding with the generation of income from ancillary agricultural activities pursued by the borrower e.g. dairy/poultry etc. or in monthly/quarterly instalments in case of other regular sources of income.
Repayment cycle: For loans disbursed on or before 15th of the month and on or after 16th of the month, the repayment date should be fixed as 10th and 20th of the following month respectively.
Prepayment Penalty of SBI Car Loan Schemes
Prepayment fee of 2% of the amount of loan prepaid if the loan is taken over by any other bank/financial institution or it is repaid before expiry of half of the agreed repayment period or partial repayment is being made in the first year.
No pre-payment penalty if loan is foreclosed for taking a fresh car loan for new or used car from Bank.
Security for SBI car Loan Schemes
Hypothecation of vehicle and noting of hypothecation charge in the books of RTO. No other security to be obtained. Any other security incl. third party guarantee to be obtained only when there is a need for credit enhancement e.g. credit score below threshold limit, any other business consideration.
Insurance: The vehicle to be kept comprehensively insured in the name of borrower for the market value or at least 10% above the loan amount outstanding, whichever is higher. Bank’s interest as a hypothecatee should be noted in the Insurance certificate & policy, a copy of which is to be retained with the loan documents. Insurance register is to be maintained.
Inspection For Standard Assets: waived after the initial inspection. But required if there is a default of 2 monthly instalments.
NPA: twice a year. Inspection register is to be maintained
Processing fee: 0.50% of loan amount [inclusive of service tax] min.500/-& max.10000/-
GM [Network] can reduce it upto 50%, during short promotional drives and wherever bulk finance is involved with check-off from reputed employer.
25% of the fee to be retained if application is rejected after presanction survey [subject to min. of Rs. 500/- and max. of Rs. 2500/-]
Interest: Loans only on floating rates which [for new loans] may also be revised without a change in SBAR.
Check List of Documents Required for SBI Auto Loan Schemes in Personal Finance
- Application Form duly filled.
- 3 Passport size photographs of borrower. (Including one affixed in loan application duly verified by Branch/MPST official).
- Statement of Bank Accounts of the borrower for last 12 months.
- Proof of identity (Election I Card/Passport/Driving License/PAN Card/Govt.
- Or Defence I Card).
- Proof of Residence (Telephone Bill/ Electricity Bill/Credit Card
- Statement/Income tax/Wealth Tax Assessment Order).
- Proof of official address for Non-salaried individuals-Telephone
- Bill/Electricity Bill/ Copy of Co’s registration document etc.
- Proof of Income:
- For salaried persons: Latest Salary Slip showing all the deductions and TDS certificate-Form 16 for last 2 years.
- For Professionals/Self employed and others: Copy of Income Tax for last 3 years, duly acknowledged by ITO and also computation of income, balance sheet, P & L account.
- Statement of Assets and Liability Statement with supporting documents: duly signed by Branch/MPST.
- Signature identification from bankers of borrower(s)/guarantor(s) if signature on Passport/PAN card is not same).
- Road Map of the place of stay.
- KYC confirmation by branch/MPST.
- Savings Bank/ Current A/c details: CIF No. ............................................A/C No. .....................................................