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SBI Car Loan Interest Rate

SBI Car Loan Interest Rate Jul 2020

Last Updated 30th Jun 2020

SBI New Car Loan interest rate starts from 8.00% and SBI Used Car Loan interest rates starts from 9.75%. These are Floating rate loans and are one of the best car loan rates in India. Rate of interest vary by borrower occupation, loan amount and loan tenure.

Features New Car Loan Used Car Loan
Processing Fee 0.51% Min Rs. 1,020 Max Rs. 10,200 0.51%
Loan Tenure Upto 7 years Upto 5 years
Lowest EMI ₹ 1,559 per lakh ₹ 2,028 per lakh
Loan Amount Upto 85% of on-road price Upto 85% of on-road price
Prepayment Charges Nil 2%

NIL processing fees on all car loan products

SBI Car Loan

SBI gives car loan to borrowers who need funds to buy a new car. Benefits of taking vehicle loan from SBI are:

  • NIL processing fees on all car loan products
  • High eligibility of up to 85 per cent of On-road Price
  • No Pre-Payment Penalty, No Foreclosure Charges, No Advance EMI

SBI Car Loan Interest Rate

SBI Car Loan interest rate depends upon following factors -

  • Loan amount: Generally banks offer lower interest rates for higher amount. SBI offers 85% of on-road price of your car.
  • Your Salary: Higher salary bracket individuals are offered loans at lower interest rates. Car Loan interest rate SBI varies with your net monthly income.
  • Employer Category: Employer category of the borrower is a major deciding factor in order to determine his/her rate of interest. SBI has a list of company categories of salaried individuals to which they avail vehicle loan. So, higher company category leads to low SBI car loan rate.
  • Relationship with the Bank: SBI offers special rates, offers and charges to the existing account holders of the bank. Those who have managed their accounts and made all the payments on time in past will get benefit of low vehicle loan interest rate.
  • Loan Tenure: SBI vehicle loans are of longer repayment tenure of 7 years.
  • Repayment Capacity: Before giving loan to the borrower, SBI checks the repayment capacity of the borrower. Bank verifies the repayment capacity of the customer through CIBIL as it has all the details of previous loans taken and their repayments. CIBIL also gives the information of credit card bills payment.

SBI Car Loan Eligibility

The following table depicts the various eligibility criteria for availing a vehicle loan.

Eligibility Criteria Eligibility Details
Age 21 years - 65 years
Minimum Annual Income Salaried: ₹ 3 Lakhs
Self Employed Professionals: ₹ 4 Lakhs
Self Employed Businessmen: ₹ 4 Lakhs
Minimum Credit Score 700 and above
Loan Tenure 7 years
Loan to Value Ratio 85% of on-road price

Car loan eligibility relies upon different factors but the most important factor is your ability to repay the loan. The main factors on which the eligibility of an applicant depends are:

Age: Age plays an important role to know your eligibility and repayment capacity. SBI offers auto loan to those who are atleast 21 years old at the time of loan approval and maximum 65 years at the time of loan maturity.

Income: SBI car loan calculator calculates your eligibility based upon your income. Usually bank set minimum levels of income to apply for car loan. SBI asks for net annual income of minimum Rs. 3.00 lakhs.

Job stability and Profession: Job stability is important to improve your status and eligibility for vehicle loan from SBI. If you are working with a reputed company, probability of getting car loan increases as the income is considered to be more stable and bank offers best SBI car loan interest to the employees of reputed companies.

CIBIL Score: Your past CIBIL history and repayment record of existing loans and credit cards has a direct impact on your SBI car loan eligibility. If you have a poor repayment record, then you may not get the loan but on the other side, a regular repayment record increases your vehicle loan eligibility. Generally, Bank give loan at a CIBIL score of 700 and above.

Loan Amount: SBI auto loan amount depends upon your income. SBI gives 100% of ex-showroom price depending upon the value of the car. To improve chances of approval, apply for a loan amount that you can comfortably service and check your SBI car loan status online and avial multiple benefits.

SBI Car Loan Calculator

Car Loan EMI of SBI is a fixed amount that you pay each month towards the repayment of your car loan till the end of tenure. Lowest EMI offered by SBI is Rs. 1,559 per lakh loan amount at lowest car loan interest rate of 9.25%. Car Loan EMI of SBI depends on factors like:

  • Rate of interest is an important factor which affects your EMI. Higher the interest rate, higher will be the EMI.
  • Loan tenure matters equally as longer tenure reduces your monthly EMI per lakh.
  • Your EMI depends upon the amount of loan you are going to borrow. Loan EMI will be high if you apply for a high loan amount.
SBI EMI Car Loan Calculator
  • Car loan EMI calculation varies from bank to bank depending upon the method of calculation.
  • The standard convention should be to use the EMI in arrears method on reducing balance basis – whereby you pay interest on the loan amount outstanding on a reducing basis at or after the end of the month.
  • Simply key in the loan amount, rate of interest and vehicle loan tenure here and check the EMI amount using the vehicle loan EMI calculator here. In case the EMI amount displayed is different from the one advised to you by the agent, you must check the calculation basis with your vehicle loan agent.


You can calculate the monthly payment (EMI) yourself using the following equation

E= P. r. (1+r)n/[(1+r) n -1]


  • P represents the principal amount that you want to apply for.
  • r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
  • n is the tenure of loan in months
  • E represents the monthly payment or EMI

Let’s say you take out a vehicle loan for Rs. 700,000 to be paid back over 5 years at an interest rate of 9.25%. Your monthly payments for this loan after applying the above formula would be Rs. 14,616 for 5 years.

SBI Auto Loan Fee and Charges

Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. SBI allows prepayment of vehicle loan after paying 1 EMI with prepayment Nil.

Processing Fee - SBI asks for a processing fee of 0.51% of loan amount. Min. Rs. 1020 and Max. ₹ 10,200 with applicable service tax.

SBI Car Loan Top up, Balance Transfer

  • SBI offers car loan balance transfer from another bank. This is subject to your meeting other eligibility criteria
  • You can avail additional top-up car loan from SBI, subject to your eligibility

Documents required for SBI Car Loan

Salaried Employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car


  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car.


What is car loan interest rate offered by SBI ?

As per current interest rates, SBI car loan interest rates are in the range of 8.00%to 8.70%.

What is the lowest EMI per lakh on SBI car loan?

Lowest EMI per lakh is ₹ 1,363 for SBI for a loan availed at an interest rate of 8.00% and for a tenure of 7 years.

What is the maximum tenure of SBI car loan?

You can repay your SBI car loan in a flexible period of 7 years.

How much processing fee is charged by SBI on car loan?

SBI charges a processing fee of 0.51% of loan amount Min.₹ 1,020 and Max. ₹ 10,200 with applicable service tax.

How much car loan I can borrow from SBI?

SBI offers you 85% of on-road price of car as loan.

Is age an eligibility factor to get car loan from SBI?

Yes, age is an important eligibility factor to get SBI car loan as you should be at least 21 years old at loan approval time and 65 years old at loan maturity time.

Are there any prepayment charges on SBI car loan?

You can take car loan from SBI with prepayment nil.

Can I add my spouse's income while applying for car loan from SBI ?

You can combine your income with the income of your spouse to increase your loan eligibility and to get higher loan amount.

SBI Car Loan Reviews 4.3/5  by 3 customers
MyLoanCare Service
Banks Service
Arnav, Ghaziabad
Reviewed on 07th Jan 2018
4 / 5 stars
SBI Car Loan Availed in Dec-18

I got fast processing on my application. All charges were normalRead more...

Adiraj Singh, Goa
Reviewed on 11th May 2017
5 / 5 stars
SBI Car Loan Availed in Apr-18

The customer care service was very helpful, my loan was disbursed within a month. Post sale service Read more...

Ashima Gandhi, Meerut
4 / 5 stars
SBI Car Loan Availed in Jul-17

Excellent and smooth loan servicing

SBI Car Loan News - Jul 2020
  • 2020-06-05 : State Bank of India reported the highest ever yearly net profit
    State Bank of India registered a Net Profit of Rs.3581 Crores bolstered by retail business loan, FDs and RDs in Q4FY20, an increase of 327% over Q4FY19. For the full year FY20, Net Profit stood at Rs. 14,488 Cr backed by retail loans like home, personal, gold, two-wheelers, and car loan along with business and mudra loan against Net Profit of Rs 862 Crores in FY19. This is also the highest ever yearly Net Profit recorded by the Bank.
  • 2020-05-08 : SBI reduced MCLR by 15 bps
    State Bank of India revised its MCLR with effect from 10 May 2020. The overnight and one-month MCLR is 6.95% which was 7.10% earlier. The three months and six months MCLR is 7% and 7.20%, respectively. MCLR for one year, two years and three years stand at 7.25%, 7.45% and 7.55%, respectively. The reduced loans will augur well for the car loan and two-wheeler loans.
  • 2019-12-27 : State Bank of India set to unveil Year-End Blast
    This year-end the State Bank of India is all set to offer pre-approved Personal Loans at Lowest Interest Rates, Concession on car loans, and various other offers as per the SBI banner on its online portal. It is to attract more customers and to collect more revenue.
  • 2019-11-10 : SBI cuts lending rates by 5 basis points
    State Bank of India, India’s largest lender, has reduced its Marginal Cost Based Lending Rates (MCLR) by 5 basis points. Bank’s one-year MCLR now stands at 8% from 8.05%. This is SBI’s seventh straight reduction in MCLR so far this financial year. The revised rates are effective from 10th November. The cut in MCLR will impact the interest rate of MCLR linked car loans.
  • 2019-10-29 : State Bank of India reports a profit for Q2
    Leading public sector bank, State Bank of India, reported a gain for the second quarter of the present fiscal year. The bank reported a net profit of Rs 3,012 crores, with the profit before tax rising to Rs 5,060 crores. The growth in the retail loan portfolio of the bank, especially home loan, personal loan, and auto loan is one of the leading reasons to bring in the profits.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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