SBI Car Loan – Types, Benefits, and How to Apply for the Loan

SBI Car Loan

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State Bank of India is an Indian public sector bank and financial services statutory body. SBI is the 49th largest bank in the world by total assts and ranked 221st in the Fortune Global 500 list of the world’s biggest corporations of 2020. It is also the 5th largest employer in India with nearly 250,000 employees. On 14th of September 2022, State Bank of India became the third lender and seventh Indian company to cross the 5 trillion market capitalization on the Indian stock exchanges for the first time.

NameState Bank of India
HeadquartersMumbai, Maharashtra
TypePublic Sector Undertaking
IndustryBanking, Financial Services
Established1 July 1955
ChairmanDinesh Kumar Khara
ParentMinistry of Finance (Government of India)
SubsidiariesSBI Life Insurance Ltd, SBI General Insurance,
Yes Bank, Andhra Pradesh Grameen Vikas Bank, Kaveri Grameen Bank
SBI Car Loan

What do you mean by Car Loan?

A car loan or a vehicle loan is a loan that is obtained to purchase two and four-wheelers for personal use. The lender loans the money to the borrower while the buyer must repay the loan in equated Monthly Instalments (EMIs) over a specific tenure at a specific interest rate.

SBI Car Loan

SBI is one of the oldest and most trusted banks in India. With SBI car loan owning a car has become easy. But for availing a car loan you must need to meet the eligibility criteria, and once your SBI car loan eligibility has been verified, you can fulfil your dream of owning a car. SBI provides car loans for New cars, Used cars, Loan against existing car, commercial use vehicle.

How to Apply for SBI Car Loan?

Applying for the car loan from SBI is easy. You can apply for the car loan by visiting the official website of the bank and by filling up the application form and uploading your necessary documents and can apply for a car loan of your choice. After verifying all your documents, the loan amount will be disbursed to your bank account instantly. You can also apply for the loan by visiting the nearest branch of SBI.

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Benefits and Features of SBI Car Loan

  • Competitive Interest Rate
  • Repayment tenure up to 7 years
  • Provides financing on the On-Road price
  • Interest is computed based on Daily Reducing Balance
  • No advance EMI
  • No penalty for pre-payment or foreclosure
  • SBI insurance option

Car Loan Schemes Provided by SBI

Car loan schemes provided by SBI are mentioned below in details.

  • SBI New Car Loan Scheme

This scheme is suitable for those who wish to purchase a new car. The repayment tenure is up to 84 months and the applicant is also offered an optional SBI Life Insurance Cover.

  • Certified Pre-owned Car Loan Scheme

This car loan scheme is for those who wish to purchase a pre-owned car for themselves. The minimum loan amount 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.

  • Loyalty Car Loan Scheme

Under this scheme, 100% of the on-road price of the car may be provided as a loan. 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

This car loan scheme is for the one who has a fixed deposit account in a branch of SBI. The repayment tenure of this loan ranged between 3 years and 7 years depending on the loan amount. The margin under this scheme is 100% of the fixed deposit for the on-road price of the vehicle. The minimum loan amount one can avail is Rs 2 lakh.

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SBI Car Loan Eligibility

To be eligible for an SBI new or used car loan, applicant must adhere to the below-mentioned car loan eligibility criteria:

  • Applicant age must be between 21 years and 67 years
  • The applicant must be either a central/government employee, a professional or self-employed individual, or an individual who is engaged in agricultural and allied activities.

How to Improve your eligibility for Car loan

You can improve your eligibility of your car loan by following the below steps.

  • Repay existing debts: Pay all your existing loans or debts. This will improve your debt to income ratio and enhance your eligibility for loan.
  • Increase your credit score: To improve your eligibility for your car loan you must have a good credit score.
  • Bring in Co-applicant: Despite all efforts if you are still found not eligible, you can bring in a co-applicant whose income will also be considered for eligibility. Terms for co-applicant are generally same as those for primary applicants.
  • Shorter Tenure: It is always to be noted that you go for a shorter tenure while availing a car loan. Shorter tenure also means that a lower interest rate will be levied on the loan amount

SBI Car Loan Interest Rates

SBI offers car loans to its customers with the interest rates offered for new and used car by SBI car loans. The interest rates ranges between 7.70% and 13.25% and the tenure of the loan is up to 7 years.

Fees and Charges

SBI charges processing fee of 0.40% of the loan amount + GST. Minimum of Rs 1,000 + GST. Maximum of Rs 7,500 + GST for new cars. SBI offers processing fee of 1,25% of the loan amount + GST. Minimum of Rs 3,750 + GST. Maximum of Rs 10,000 + GST for certified pre-owned cars.

EMI Calculator

Before you avail car loan from SBI, it is important to calculate your EMI. You may want to know how much loan or EMI you must be paying on each month. EMI online calculator has made it easy, by calculating the EMI, you will be able to budget your monthly expenses better. SBI has a car loan eligibility calculator facility on its website which you can use to determine your eligibility and compute the amount of interest and EMI. To calculate your EMI you just need to enter the loan amount, interest rate, repayment tenure, processing fee etc. The EMI Calculator tool will calculate the EMI and display it to you.

Documents Required

To apply for a car loan you must need a certain documents. You must have to submit the documents alongside the completed application form. The documents which you need to submit are mentioned below:

Salaried Individuals

  • Bank account statement of last 6 months
  • 2 passport size photographs
  • ID proof
  • Address proof
  • Proof of income
  • Income tax returns or form 16 for the preceding 2 years


  • Bank account statement for last 6 months
  • 2 passport size photos
  • Address proof
  • ID proof
  • Proof of income
  • Form 16 for the preceding 2 years
  • Audited balance sheet
  • Sales tax certificate
  • Partnership copy

Individuals Engaged in Agriculture/ Allied activities

  • Bank account statement for last 6 months
  • 2 passport size photos
  • ID proof
  • Address proof
  • Direct agricultural activity


1. How can I apply for a Car Loan at SBI?

Ans: You can apply for a car loan from SBI by both offline and online mode.

2. How long does it take to process the loan?

Ans: It may take about 2 to 3 days to process the loan.

3. Can I increase the amount of loan?

Ans: Yes, you can increase your loan amount.

4. What is Car Loan eligibility calculator?

Ans: Car loan eligibility calculator is an online calculator where you can calculate your monthly EMI that you need to pay every month towards the loan amount.

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