All you need to know about SBI Car Loan

“A car for every purse and purpose.” The privilege of owning a car isn’t the unfulfilled dream of the majority of people. Owning a car is now feasible for the majority of Indians thanks to State Bank of India car loans. You can just walk into any dealer showroom and drive away in the brand-new car of your choice as long as you match the eligibility requirements. Once your eligibility for an SBI Car Loan has been confirmed, you can accomplish your dream of owning a car. SBI is one of the oldest and most reputable banks in India. SBI provides various kinds of Car loans for its customers. Loan for brand new car, loan for used car and you can even take loan against existing cars.If you have queries about how you can get paid for selling your junk car then here is the complete detail by just following 3 steps including filling out the information, accepting the offers, and they get paid so you can sell out your old vehicle.

Car Loan Characteristics in India

In India, car loans generally have the following characteristics:

  • Depending on the necessity and the type of car required, one can choose between a new or used car loan. However, the majority of individuals tend to favor car loans on new cars, not old ones.
  • For the majority of people, a car loan in India is an alternative that enables them to buy a car that is better than the one that fits within their budget because the car loan approval is fast.
  • In India, car loans typically offer the option of a fixed interest rate when returned through EMIs. This allows for better budget planning without compromising with your regular costs because you are promised a fixed monthly repayment amount for the car loan.
  • When compared to other types of loans, car loans in India are usually easy to get. The application process is simple, and there are clear instructions.
  • Borrowers of car loans are eligible for loans up to INR. 1.5 cores, which typically cover 100% of the vehicle’s on-road price.
  • For car loans, the majority of banks offer low EMIs with flexible duration options.

SBI Car Loan Eligibility Criteria

The eligibility criteria for SBI car loan are Each applicant must be at least 21 years old and not more than 65. Additionally, the applicant must fall within one of the following groups:

CategoryIncome CriteriaMax. Loan Amount
Salaried EmployeeNet annual income >= 2,50,000 INR.48 times of income
Professional or self-employedNet profit of INR 3,00,000 or more per annum or Gross Taxable income of the same amount.4 times Net Profit after paying off all outstanding loans
Person engaged in agricultureNet annual income of INR 4,00,000 or more.3 times of Annual Income

What are the factors impacting the eligibility of a car loan?

While SBI will give you up to 90% of the car’s on-road price, there are a lot of factors that can affect how much money you can take. Some of these elements are:

  • Credit Score 

The applicant’s creditworthiness is indicated by their credit score. You have a greater chance of receiving a loan if you have a high credit score, which shows higher creditworthiness.

  • Age

Anyone under the age of 21 or older than 65 isn’t allowed to apply for an SBI car loan. Additionally, the applicant must repay the car loan before turning 65. As a result, your age affects both your eligibility for a loan and its amount.

  • Existing loans

Your eligibility will also be affected by any existing liabilities you may have because they have a claim on your income. Before requesting a new loan, it is advisable to pay off all previous debts.

  • Income

Your income is a key factor in determining your eligibility for a loan because it affects your capacity to repay it.  At the time of application  you must provide documentation of your income. If your income is unlikely to fulfill the eligibility requirements, you can submit an application with a co-applicant whose income will be added to yours to determine eligibility.

Process to Apply for SBI Car Loan

Wishfin has simplified the process of applying for SBI Car Loan. You can apply for SBI Car Loans online with a few clicks and receive instant approvals. You must provide your personal information, the specifications of the car you want to purchase, and your budget. Depending on your budget and needs, You can also use the SBI Car Loan EMI calculator. It makes the whole calculation process easy for you. After that you will get the finest SBI offers for new or used car loans.

By Christopher

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