(FAQ) CAR LOAN
Q. What makes of cars does SBI finance?
A. We finance all makes of new cars, and second hand cars not more than five years old. Thus, you are free to choose any vehicle you want to own.
Q. Can my spouse's income be included for calculating the loan amount?
A. Yes, your spouse's income can be included provided he/she joins as co-borrower.
Q. What is the repayment schedule like?
A. The minimum amount that you are expected to pay every month is the EMI.You can repay the loan in upto 84 EMIs.
Q. What is EMI? How is it calculated?
A. EMI stands for Equated Monthly Installments. This installment comprises both principal and interest components. Your EMI would be calculated depending on the tenor you choose, to repay your loan. The EMI would be higher if you choose to repay within a shorter period as against a longer-term loan.
You can also contact your nearest SBI Branch to know the EMI for proposed loan amount and tenor.
Q. What Security do I have to furnish for availing the Car Loan?
A. A charge on the vehicle financed is noted with local Transport Authorities . Your spouse's guarantee, if his/her income has been considered for fixing the loan amount, would also be required. Some other security may also be required in certain cases.
Q. How does SBI Car Loan compare with those offered by other institutions?
A. There is total transparency with regards to the rate of interest and the fees charged by us.
We offer loans for the longest tenors (84 months).
We also provide finance for both new vehicles as well as old cars (not more than five years old).
We levy interest on daily reducing balance, unlike the flat rate of interest or interest based on annual reducing balance method used by several other financiers.
We provide finance for one-time road tax, registration fee and insurance premium also. We provide free Personal Accident Insurance upto the outstanding amount, so that in case of accidental death, your near and dear ones are not required to repay the loan.
We do not charge any advance EMIs .