RTB - ASSIGNMENT

VECHILE LOAN

Submited by-
Ashis Kumar Muduli (19DM001)
Sambit Sahoo (19DM002)
Subham Choudhury (19DM017)
Rishika Goswami ( 19DM027)
Ajay Das (19DM077)
 Commercial vehicle loans are loans offered to borrowers, usually
self-employed individuals, trusts, partnership firms, organisations, etc.,
for the purchase of vehicles for commercial or business purposes.
These Car loans are availed by those who are involved in the
transportation business. A commercial vehicle loan can be used to
purchase buses, trucks, tippers, tankers, light and small commercial
vehicles.
Purpose of a Commercial Vehicle Loan
As stated above, commercial vehicle loans are availed to fund the
purchase of a vehicle that will generally be used for commercial or
business purposes. These loans are offered by leading lenders in the
country such as ICICI Bank, YES Bank, Indiainfoline, Mahindra Finance,
etc., at affordable interest rates. The entire process of commercial
vehicle loan application is swift, hassle-free, and requires less
paperwork.
Features of Commercial Vehicle Loans
 You can get a commercial vehicle loan at a low interest if your
profile matches with the criteria put forward by the lenders.
 The processing time of a commercial vehicle loan is fast with easy
documentation and approval.
 Most of the prominent banks in India provide commercial vehicle
loans at affordable rate of interest without any security.
 Some of the banks assign a personal relationship manager from
starting till procurement of the vehicle. He/she will do all
documentation and address every issue related to the loan.
 Once all required documents are submitted, it takes around 7 days
for the disbursal of the loan amount.
Types of Commercial Vehicle Loans
Commercial loans can be availed for a variety of commercial vehicles
which are used at different places to serve various purposes. Based on
the type of vehicles these loans are sought for, commercial vehicle
finance is differentiated in three broad categories, namely:
1. New commercial vehicle loan
This type of commercial vehicle loan is provided to the customers for
the purchase of new commercial vehicles for business purpose. Banks
offer up to 100% funding on the chassis or base frame value of the
vehicle. Some of the banks provide additional funding for the body
construction of the vehicles in selective cases based on the borrower’s
profile.
2. Old commercial vehicle loan
Old or used commercial vehicle loan are those loans which are offered
to purchase all makes of pre-owned or used commercial vehicles.
Under this loan, borrowers can expect to get finance against old
vehicles which are up to 15 years old. Most of the banks provide up to
90% funding on the used vehicle’s value or depreciation grid value.
3. Commercial vehicle refinancing
Under commercial vehicle refinancing, banks either offer loan on an
existing vehicle which is free of loan or take over an existing
commercial vehicle loan and provide additional finance for it based on
eligibility. While some borrowers can reduce the monthly EMIs of their
existing loan and free up some cash by refinancing an existing loan at
lower interest rates, some others can get direct finance on their free
vehicles to meet the working capital needs.
Who Can Avail Commercial Car Loans?
Banks and other lenders offer commercial car loan to a broad array of
customers to meet their business needs. In other words, this type of
vehicle loan can be availed by various segments of customers having
diverse profiles. Here is the list of the consumers considered to be
eligible for this loan:
 Individuals
 First-time users and buyers
 Small, medium and large-sized fleet owners
 Proprietorship firms and Partnership firms
 Public Limited & Private Limited Companies
 Trusts and societies
 Schools and colleges
 Captive customers and transporters
Salaried and self-employed individuals can co-apply for a commercial
vehicle loan with blood relatives or family members. On the other hand,
the partners in partnership firms and the directors in private limited
companies can jointly apply for this loan.
Note: Sometimes, banks or financial organisations offer special
schemes for first-time buyers and fleet operators/owners.
Benefits of a Commercial Vehicle Loan
Commercial vehicle loan stands out to be the most preferred option for
borrowers who are either intending to buy their first commercial vehicle
or planning to add a new vehicle to their existing fleet of commercial
 vehicles due to the plethora of benefits that it offers. Some of the
amazing benefits offered by these type of loans are as follows:
 Flexible repayment tenure- Usually, the repayment tenure offered
in commercial car loan is up to 5 years. This ensures low EMI amount
to the borrowers enabling them to pay off the EMIs without any undue
financial burden.
 Multiple vehicle financing- Whether you are an individual borrower
or a fleet owner, you can get finance for a variety of vehicles such as
tippers, trucks, buses, trailers, tankers, and other small and light
commercial vehicles to grow your business.
 Easy processing- The process of applying for a commercial vehicle
loan is easy, fast and convenient. After the submission of all the
required documents, banks usually take 4-5 days to process a new or
used vehicle loan application.
 Simple documentation- Commercial vehicle loans come with a
hassle-free and quick documentation process. The users can easily
upload all the mandated documents online without visiting the bank
directly.
 No credit-score compulsion- Unlikely other loans, commercial
vehicle loans don’t require any existing credit score. Borrowers having
low or even zero credit score can avail a commercial vehicle loan with
ease.
 Caters to multiple needs: The loan schemes are designed to cater
to the borrowers’ diverse requirements including new and used vehicle
financing, top up on existing loan and refinancing of loans/vehicles for
working capital.
 Customised solutions: In order to meet the specific requirements of
the customers, every commercial vehicle loan scheme is customised
according to the vehicle type, loan duration and financial ability of each
individual borrower.
Commercial Car Loan Documentation
 Duly filled application form with attached photograph
 2 passport-size photographs
 Cheque for processing fee
KYC documents
 Age proof- Aadhaar Card/PAN Card/Voter's ID card/Driving
License/Passport (Any one)
 Identity proof- Aadhaar Card/Voter's ID card/Driving
License/Passport (Any one)
 Residence proof- Rental agreement/Voter’s ID
Card/Passport/Ration card/Tel bill or Elec. Bill/Trade License/ Sales
Tax Certificate (Any one)
 Signature verification proof-Driving License/PAN Card/Registered
Sale Deed/Govt. ID Card (For Govt. employees) (Any one)
Income proof
 Last 3 months Salary Slips
 Latest 6 months bank statement
 Form No.16
 Updated ITR for last 2 years
 Photocopy of official ID
Experience proof
 Valid documents to prove relevant experience (In case of first-time
buyers)
Other Documents (As applicable)
 Existing vehicle ownership proof
 Vehicle details & valuation report
 Insurance and RC copy of vehicle
 Fleet list details (In case of small, medium, and large fleet
operators/owners)
 Trade references (In case of first-time buyers, fleet
operators/owners & experienced borrowers)
 Property ownership proof (In case of farmers)
 Proprietorship decl., partnership deed, (MOA/AOA), board
resolution & 2 years audited financials (In case of Private/Limited
companies, partnership firms, trusts & societies)
 Loan repayment track (if any)
Eligibility Criteria for Commercial Vehicle Loan
For new commercial vehicles
 Salaried borrowers should have more than 2 years of employment
stability and self-employed individuals must have at least 2 years of
business experience.
 Private/Limited companies, partnership firms, trusts, societies and
associations must be in existence for minimum 2 years.
 Fleet operators and other existing vehicle owners require to have 1
to 3 years of vehicle ownership proof of one or two commercial
vehicles.
 Private/Limited companies, partnership firms, trusts & societies
Companies need to provide 2 years of audited financials.
 Internal/external guarantor needed sometimes in case of
individuals, first-time buyers and fleet operators/owners.
 The customers need to have minimum residential stability of 2
years. *(Borrowers with lesser stability are subjected to certain terms
and conditions).
For old commercial vehicles
 Borrowers applying for a commercial car loan for old vehicles need
to fulfil the following criteria along with the basic ones:
 Customers need to have relevant experience of 3 to 5 years
depending on individual profile.
 Minimum 1 year of ownership of at least 2 vehicles.
 At least 1 year repayment track of commercial vehicles
Vital Aspects of a Commercial Vehicle Loan
 Application process- At first, the borrower needs to fill up an
application form online, then furnish all the necessary documents and
finally provide the details of the personal guarantor if required.
 Loan approval- The bank will run a check to verify the documents
and borrower’s eligibility. If the borrower is found to be eligible, the
loan will be approved within 2 to 5 working days from the time of
documentation.
 Processing charges- Banks ask for a minimal non-refundable
amount for processing a commercial vehicle loan. This amount
depends on the amount of the loan applied for and generally ranges
from 2% to 4% of the loan amount.
 Loan Amount/Margin- The maximum loan amount for commercial
vehicles varies from customer to customer based on their individual
profile. A borrower can get up funding of up to 100% of the vehicle’s
chassis.
 Repayment tenure- The repayment tenure for a commercial
vehicle loan usually starts from 6 months and goes up to 60 months (5
years). The borrower is allowed to repay the amount in easy monthly
EMIs.
 Security/collateral- While certain banks offer loans for
commercial vehicles without any security or guarantor, some require a
guarantor or co-applicant depending on the borrower’s profile and the
product.
 Pre-payment of loan- The borrowers can prepay the loan after 6
months of availing it by paying a pre-payment fee of up to 5% of the
remaining loan amount. However, part pre-payment of the loan is
usually not allowed.
NAME OF THE INTEREST OTHER CHARGES
BANK RATE
ICICI Bank Will depend  Additional documentation
on the other charges – Rs.350
customer’s
profile, tenure
of loan, etc.
HDFC Bank 8.70% to  Processing Fee: Up to
21.25% IRR 1.50% of the loan amount.
 Foreclosure/Prepayment
charges: Within 1 year
from 1st EMI – 4% of
Principal Outstanding.
After 1 year from 1st EMI –
2% of Principal
Outstanding.
Kotak Mahindra Minimum:  Processing Fee: Up to 2%
Bank Reference of loan amount.
Rate or  Documentation Charges:
Prevailing Up to Rs.5,000.
MCLR  Prepayment/Foreclosure
Maximum: Charges: 5% of Principal
24% Outstanding based on
reducing balance
repayment date.
Axis Bank 10.25% to  Processing Fee: Rs.5,000.
15%  Foreclosure Charges:
After 6 months from
disbursement date – 10%
of the Principal
Outstanding.
 Part-Prepayment Charges:
After 6 months from
disbursement date – 5% of
the part payment amount.
Up to 6 months from
disbursement date – 10%
of the part payment
amount.
NAME OF THE NBFC INTEREST OTHER CHARGES
RATE
Capital First Ltd. 13.50% -  Processing Fee: 2% on
14.50% time
Floating
Reliance Capital Ltd. 16% Fixed  Processing Fee: 1.25% of
Loan Amount or Rs.5175
whichever is maximum.
L & T Finance Ltd. 16% - 17%  Processing Fee: 2% on
FIXED time
Axis Finance Ltd. 10.05% -  Processing fee: Rs.5,000
14.80% on time.
 Foreclosure Charges: 5%
of the Principal
Outstanding.
 Documentation Charge:
Rs.500 on time.

What is a car loan?

A car loan (also known as an automobile loan, or auto loan) is a sum of
money a consumer borrows in order to purchase a car. Car loans follow
most of the same rules and procedures that apply to other loans. In most
cases when purchasing a car, a borrower will specifically apply for a car
loan; however, a consumer can also use a personal loan (a loan
obtained by an individual to use at his or her discretion) for the same
purpose. All car loans are for specific lengths of time, generally
anywhere between 24 and 60 months, although some car loans can be
for longer periods. This type of loan is also known as financing. Car
loans generally include a variety of fees and taxes, which are added to
the total loan amount.

Types of Car Loans

A car loan is nothing but the funds that one borrows from a lender for the
sole purpose of purchasing a car of his or her choice. Lenders like banks
and Non-Banking Financial Companies (NBFCs) offer auto finance to
consumers in the form of new and used car loans. From luxury sedans
to hatchbacks, car loans are available for almost all passenger vehicles
and commercial vehicles in the market. A car loan is repaid with interest
through Equated Monthly Installments (EMIs) over a specified period of
time called the loan tenure.
There are 3 types of car loans available in India:

• New Car Loan: As the name suggests, a new car loan can be used
to purchase a brand new car straight out of the showroom. Banks offer
new car loans at an interest rate of 9-14% p.a. for a loan tenure of 1 to 7
years. New car loans are available for most makes and models of cars in
the market.
• Used Car Loan: Banks and NBFCs offer used car loans up to 80-
85% of the price of the car at an interest rate of 12-18% p.a. for a loan
tenure ranging from 1 to 5 years. Used car loans can be used to
purchase pre-owned or used cars that are less than 5 years old or
doesn’t exceed more than 10 years at the time of loan maturity.
• Loan against Car: When one is in dire need of funds, he or she
can pledge his or her old car as collateral in order to obtain sufficient
funds to purchase a new car. This is known as Loan against Car. Some
banks in India offer loan against car up to Rs.10 lakh or 100% of the
value of the car at an interest rate of 14-15% p.a. for a loan tenure of 1
to 3 years. For instance, if you have a bad credit score, you can pledge
your old car to the bank as collateral to obtain some much-needed
funds.

What are the features of a car loan?

Understanding how a car loan works can help you choose a suitable car
loan offer. Here are the important features of a car loan:
• Car loan amount: Banks offer a maximum car loan of up to 85-
100% of the on-road price/ex-showroom price of the car. If you pay a
high down-payment on your chosen car, then the cost of your car loan
will be less.
• Car loan tenure: You can opt for a short or long car loan tenure
ranging from 1 to 7 years. A short loan tenure will ensure you repay your
loan in a short period of time but will have high EMIs whereas a long
tenure will have low EMIs but you will end up paying more in interest
payments. It is advisable to use an online car loan EMI calculator tool to
choose a suitable car loan tenure so that you can save up on interest
payments.
• Car loan interest rate:In order to repay your car loan, you have to
pay interest on the principal loan amount every month over the chosen
loan tenure. The interest rate of a car loan will vary depending on the
bank you choose. Visit a third-party website to compare various car loan
offers across the top banks and choose one that offers the lowest
interest rate.
• Car loan EMI: Car loan is repaid to the bank in Equated Monthly
Installments (EMIs). In order to get instant and accurate results of EMI
calculation, use the online car loan EMI calculator that is available for
free on the bank website or a reliable third-party website. The tool is
easy to use - all you have to do is enter the loan amount, interest rate,
loan tenure, and processing fee into the calculator and click on the
‘Calculate’ button. You will get a periodical loan repayment schedule in
the form of an amortisation table. The table will consist of your EMIs,
outstanding due after each EMI payment, interest payments, etc. EMI
calculation can help you find out how much your car loan will cost you
monthly.
• Processing fee: Banks charge a small percentage of the principal
loan amount called the processing fee to process your car loan. The
processing fee will be deducted at the time of disbursing the loan
amount to your bank account. Some banks waiver the processing fee as
a special offer.
• Prepayment/Preclosure: Banks allow borrowers to prepay a part
of the car loan after 12 EMI payments have been made. For making this
prepayment, you will have to pay a penalty fee which is a percentage of
the prepayment amount called the prepayment fee. You can also choose
to pay the loan amount in full before the end of its loan tenure called
preclosure. Banks charge a preclosure fee which is a percentage of the
remaining principal amount that you pay to preclose the loan. Pre-
closing a car loan is not advisable as making timely EMI payments can
help to improve your credit score.
• Foreclosure: As the car acts as a collateral in car loan, if you
were to default on your car loan, your car will be repossessed by the
bank and put up for auction to compensate for the outstanding dues.
This procedure is called car loan foreclosure.
• Types of car loans: Banks offer 3 types of car loans - new car
loan, used car loan, and loan against car. As the names suggest, new
car loans can be used to purchase a new car whereas a used car loan
can be used to purchase a used or pre-owned car. Loan against car is
wherein you can pledge your old car in order to obtain loan from the
bank to purchase a new or second-hand car.

New Car Loan Vs Used Car Loan

New car loan and used car loan differs not only in purpose of the loan
but also in interest rates and loan tenure. Obviously, the cost of a new
car is higher than the cost of a second-hand car. However, does the
same apply to the cost of new and used car loans? Listed below are the
differences between new and used car loans:
• Loan amount: As the price of a new car is higher than the price of
a used car, the loan amount of a new car loan is higher than used car
loan. Banks offer new loans up to 85-100% of the ex-showroom or on-
road price of a new car. Banks offer used car loans only up to 70-80% of
the price of a used car.
• Interest rate: As the loan amount for a used car is lesser than a
new car, the interest rate for a used car loan is higher than a new car
loan by 5-7%. Furthermore, lenders believe that providing a new car loan
is less risky as a new car has better resale value than a used car.
• Loan tenure: The loan tenure for new car loans range from 1 to 7
years whereas for used car loans, it is 3 to 5 years. Thus, the loan
tenure for a new car loan is longer than a used car loan. Car loan tenure
is determined based on the age of the car and the loan amount.
• Loan EMI payments: EMI payments are smaller for new car loans
as they have longer repayment periods when compared to used car
loans. The EMI for a used car loan is higher than a new car loan as the
loan tenure for a used car loan is comparatively smaller.
• Down payment: The down payment for a used car is higher than
a new car as lenders are willing to lend a maximum loan amount of only
half the price of a used car.
The insurance cost of a used car is higher than a new car depending on
2 factors - maintenance cost and safety features. The maintenance cost
of a used car is higher than a new car and the safety features available
on a new car is more compared to a used car. Therefore, the insurance
premium is higher for a used car compared to a new car. Similarly, the
depreciation of a new car is rapid when compared to used cars. The
depreciation rate of a used car is comparatively lower.
Car loans offer a respite to consumers who want to purchase a car of
their choice but don’t have sufficient funds to do so. When choosing a
car loan offer, pick one with the lowest interest rate, a suitable loan
tenure, zero processing fee, and flexible repayment options. Car loans
are available for the purchase of most makes and models of cars in the
passenger and commercial vehicle segments, ranging from hatchbacks
and sedans to Sports Utility Vehicles (SUVs) and Multi Utility Vehicles
(MUVs). You can also get tax deductions on car loans for commercial
vehicles.

Features of HDFC Car Loan

HDFC Car loans are very popular among car-buyers owing to its deals
on car loans. Some key features of Car loans offered by HDFC Bank
include:
• You can avail 100% finance for your new car.
• HDFC Bank Car loan is approved within a really short time span of
just 30 minutes.
• Flexible loan repayment tenure of 7 years.
• Competitive and fixed rate of interest.
• Lowest down payments.
• Low Car loan EMIs.
HDFC Bank Car Loan – Eligibility Criteria
Salaried Individuals
• Aged between 21 years and 60 years
• Employed for a minimum of 2 years with at least 1 year with the
current employer
• Earn at least Rs.3 lakh p.a.
• Have a telephone/post-paid mobile
Self-Employed Individuals (Sole Proprietorship)
• Should be in the business of trading, manufacturing, or services
• Aged between 21 years and 65 years
• Should have been in business for at least 2 years.
• Have an annual income of at least Rs.3 lakh
Self-Employed Individuals (Partnership Firms)
• Self-employed partners in the manufacturing, trading or services
business
• Should have a turnover of at least Rs.3 lakh p.a.
Self-Employed Individuals (Private Limited Companies)
• Owners of private companies in the manufacturing, trading or
services business
• Should have a minimum annual income of Rs.3 lakh
Self-Employed Individuals (Public Limited Companies)
• Directors in public limited firms in the manufacturing, trading or
services business
• Have earnings of at least Rs.3 lakh p.a.

Documents Required for HDFC Bank Car Loan

Salaried Applicants

Proof of PAN card, Passport, Driving License, Aadhaar card,

Identity Voter’s ID, etc.

Ration card, Aadhaar Card, Voter’s ID, Passport, Driving

Address
License, Telephone bill, Electricity bill, Telephone bill,
Proof
Life Insurance Policy, etc.

Income
Form 16 and latest salary slip
Proof

Bank
Previous 6 months
Statement

Self-Employed Applicants (Sole Proprietorship)

Proof of PAN card, Passport, Driving License, Aadhaar card,

Identity Voter’s ID, etc.

Ration card, Aadhaar Card, Voter’s ID, Passport, Driving

Address
License, Telephone bill, Electricity bill, Telephone bill,
Proof
Life Insurance Policy, etc.

Income
Latest Income Tax Returns (ITR)
Proof

Bank
Previous 6 months
Statement
Self-Employed Applicants (Partnership Firms and Private Limited
Companies)

 Audited Balance Sheet

Income
 Company ITR for the last 2 years
Proof
 Profit & Loss Account for the previous 2 years
Shop & Establishment Act Certificate, Electricity Bill,
Address
Telephone Bill, Sales Tax Certificate, SSI Registered
Proof
Certificate

Bank
Previous 6 months
Statement

Self-Employed Applicants (Public Limited Companies)

Income  Audited Balance Sheet

Proof  Profit & Loss Account for the previous 2 years

Shop & Establishment Act Certificate, Electricity Bill,

Address
Telephone Bill, Sales Tax Certificate, SSI Registered
Proof
Certificate

Bank
Previous 6 months
Statement

HDFC Bank Car Loan-Fees and Charges

Fees and Charges

Processing Fees Rs.3,000 to Rs.10,000

 Before 1 year from 7th EMI –

Foreclosure Charges 6% of principal outstanding
 Within 13 months to 24 months
Fees and Charges

from 1st EMI – 5% of principal

outstanding
 After 24 months from 1st EMI –
3% of principal outstanding
Documentation Charges Rs.630 per case

 Within 13 months to 24 months

from 1st EMI – 5% on the part-
Part-payment Charges payment amount
 After 24 months from 1st EMI –
3% on the part-payment amount

Overdue EMI Interest 2% per month

Cheque Swapping Charges Rs.500 per instance

Loan Rebooking/reschedule
Rs.1,000
charges

Duplicate no-due certificate/no-

Rs.500 per instance
objection certificate

Cheque/ECS/SI Return Charges Rs.550 per instance

Collateral Charges Rs.475 per case

SBI Car Loan Features

These are the salient features of the car loan given by SBI bank:
• Multiple Options to choose from: State bank Of India offers
multiple Car loan options to choose from for financing the purchase of
both new as well as used cars.
• Lowest interest rates: Car loan interest rates by SBI bank are
very lucrative and are charged at the lowest possible rates. State Bank
of India car loan interest rates are offered at both fixed as well as flexible
rates. The prevailing SBI Car Loan interest rates range between 10.40%
and 10.45%.
• No advance EMI (advance monthly car loan payments): The
State Bank of India car loan borrowers enjoys flexible options to pay
EMIs. Car loans provided by SBI come with hassle free options as per
which the customer does not have to pay advanced EMI at the time of
taking SBI car loan. Further, they even get the liberty to pay off their
EMIs at any time during the month.
• Repayment tenure: The State Bank of India has designed the car
loan product keeping the convenience of the borrowers in mind. For the
same, SBI bank offers the longest car loan repayment period of 7 years
or 84 months.
• Financing the Car’s ‘On-Road’ Price: State Bank of India
finances car loan of a borrower on 85% of On-Road price that includes
cost of registration/annual maintenance contract/total service
package/cost of accessories /charges for insurance and extended
warranty.
• Interest is calculated on daily reducing balance: Another added
advantage of SBI car loans is that the customers are charged interest at
daily reducing balance.
• No-foreclosure Charges: Certain SBI car loan schemes offer no
fore-closure charges; which mean car loan borrowers do not need to pay
extra for pre-paying the borrowed car loan amount.
• Optional SBI life cover: Along with SBI Car Loan, State Bank of
India even offers an option of choosing SBI life cover by paying a little
extra cost.
• Overdraft Facility: With the SBI Car loans, borrowers can even
avail overdraft facility at the State Bank of India.

SBI Car Loan Eligibility

These are the eligibility conditions to avail car loan from SBI bank:

Max.
Age Income
Category Loan
Group Criteria
Amount
 A net
annual
income of
An employee of
Age: Rs. 48 times
Central/State
21 to 2,50,000 of of the net
government,
65 the monthly
public/private limited
years applicant income
company
and/or the
co-
applicant

4 times of
Net Profit
Professionals, self- Net Profit
Age: or Gross
employed, or Gross
21 to Taxable
businessmen, Taxable
65 income of
proprietary/partnership income as
years Rs.
firms per the
4,00,000
filed ITR

A net
annual
income of
Age: Rs.
4 times of
21 to 4,00,000 of
Agriculturist Net annual
65 the
income
years applicant
and/or the
co-
applicant

SBI Car Loan Documents Required

These are the required documents to submit to avail the car loan from
SBI Bank:

Salaried Self-Employed Agriculturist

Car loan Car loan Car loan application

application form application form form

Bank statement Bank statement Bank statement for last

for last 6 months for last 6 months 6 months

ID and Address ID and Address

ID and Address Proof
Proof Proof

2 passport sized 2 passport sized 2 passport sized

photographs photographs photographs

Bank accepted cropping

Income proof:
Income proof: pattern and land holding
Salary Slip, Form
Form 16 and documents and
16, and ITR for 2
ITR for 2 years documentary proff of
years
cultivation

SBI Car Loan Interest Rate and Fees*

Interest Rate 9.20% – 9.70%

Processing Fee Rs. 1,000 – Rs. 1,500 + GST

Repayment Tenure Upto 7 years

 Financing 90% of ‘on-road’ price

For Government Employees: 40 times of

monthly income.
For Professionals: 4 times of gross taxable
Maximum Loan
income.
Amount
For Businessmen: 4 times of net profit.
For Agriculturalist: 3 times of net annual
income.

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.