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SBI Car Loan EMI Calculator

SBI Car Loan Calculator India 2020

Last Updated 02nd Dec 2020

RBI keeps Repo Rate unchanged at 4%

  • Get monthly EMI as low as ₹ 1,559 per lakh with SBI now offering vehicle loans with loan tenure upto 7 years.
  • Lowest car loan interest rate currently offered by SBI is 8.00%, for which the EMI per ₹ 1 Lakh loan amount comes to ₹ 4,523 for a 2 year loan and ₹ 2,028 for a 5 year loan.
Loan Amount2 Year Loan4 Year loan7 Year loan
₹ 5 Lakh₹ 22,614₹ 12,206₹ 7,793
₹ 10 Lakh₹ 45,227₹ 24,413₹ 15,586
₹ 15 Lakh₹ 67,841₹ 36,619₹ 23,379
Car Loan EMI Calculator
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Car Loan EMI Calculator SBI

SBI Car Loan EMI

  • Car loan EMI (or equated monthly installment) is a fixed amount of money paid by you to SBI against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • With SBI offering vehicle loans with loan tenure upto 7 years, the loan EMI can be as low as ₹ 1,559 per lakh, to make it more affordable and convenient to meet your car needs. Rate of interest offered by SBI are as low as 8.00%.

The EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, the principal component keeps increasing and on the other hand the interest component keeps reducing.

Features of SBI Car Loan

  • Borrower age should be between 21 years to maximum 65 years.
  • Maximum vehicle loan amount offered by SBI is upto 85% of on-road price.
  • Interest rates starts @ 8.00% depending upon down payment, net income and other factors.
  • Processing fee in SBI is 0.51% of the cost of the car Minimum ₹ 1,020 and Maximum ₹ 10,200.

Car Loan EMI Calculator SBI at different tenure

Car Loan EMI for different loan amounts and tenures @ 8.00% interest rate
Loan Amount 2 Years 3 Years 5 Years 7 Years
1 Lakh₹ 4,523₹ 3,134₹ 2,028₹ 1,559
3 Lakh₹ 13,568₹ 9,401₹ 6,083₹ 4,676
5 Lakh₹ 22,614₹ 15,668₹ 10,138₹ 7,793
10 Lakh₹ 45,227₹ 31,336₹ 20,276₹ 15,586
  • As you can see in the above table, for various loan amounts taken at the lowest rate of interest, EMI differs with changes to tenure at 2 to 7 years. Your EMI is higher when you take loan for a shorter tenure of 2 years and it is lower when you apply for a higher tenure of 7 years.
  • Your EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, every month the proportion of interest payment and principal repaid within each EMI is different. With every EMI, the proportion of principal repayment in EMI keeps increasing and the interest component in EMI keeps reducing.

Use EMI Calculator to calculate your interest on vehicle loan at different tenure

Vehicle Loan EMI for ₹ 1 Lakh loan amount at lowest 8.00% interest rate offered by SBI for different tenures
2 years 3 years 5 years
SBI EMI for a loan amount ₹ 1 Lakh at 8.00% ₹ 4,523 ₹ 3,134 ₹ 2,028
Total amount you pay back to the bank including principal and interest ₹ 1,08,546 ₹ 1,12,811 ₹ 1,21,658
Interest you have to pay over loan tenure ₹ 8,546 ₹ 12,811 ₹ 21,658

The above table shows the longer your loan tenure, lower is the EMI you pay on the loan. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take a ₹ 1,00,000 loan for a period of 5 years, you pay the lowest EMI of ₹ 2,028. However, you pay an interest of ₹ 21,658 on a ₹ 1,00,000 loan.

In contrast, if you take a ₹ 1,00,000 loan from SBI at the lowest loan rate offered for a period of 2 years, you pay a higher vehicle loan EMI of ₹ 4,523 and pay an interest of only ₹ 8,546 which is less than half of what you paid in 5 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting SBI Car Loan EMI

  • Loan amount – This is the amount borrowed by a borrower from SBI. If you apply for a higher loan amount, your monthly EMI will be high. SBI gives maximum loan of 85% of on-road price of the car.
  • Interest rate - Interest rates is the rate charged by SBI on your vehicle loan. Higher interest rate increases your loan EMI which will increase the total cost of the loan. Lowest interest rate offered by SBI is 8.00%. However, it is advisable to do complete market research and compare rates online before you apply for loan.
  • Loan tenure – This is the period in which you can repay your loan in SBI. Longer loan tenure means lower car loan EMI. Generally, SBI offers loan for a maximum tenure of 7 years.

Amortization Calculator

An amortization schedule is a table of periodic loan payments that shows the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.

In the Amortization schedule, your monthly EMI will be equal, but the component of EMI, which consists of interest payment and principal payment will not remain the same every month, it keeps on changing.

Illustration: How to read an amortization schedule

Suppose if you take a of ₹ 0 for years at an interest rate of 9.25%. EMI calculated for this loan amount is and the total annual EMIs to be paid annually is . The EMI schedule of loan for years is explained below in the table –

Amortization Schedule for a of ₹ 0 over the years

Year Interest paid during the year Principal repaid during the year Total amount paid during the year (Interest + Principal) Outstanding Principal
2020 ₹ 0

Each EMI consists of both amounts of interest as well as the principal repaid. The interest component of EMI goes down while the principal component goes up in both cases while doing the calculation.

In the above illustration, on a of ₹ 0 , taken at the lowest interest rate of 9.25%, EMI paid is and an annual total of EMIs is , the interest component is while the principal component is in year 1 of loan disbursement. You repay only NAN% of the total principal after paying 12 EMIs during the first year.

In year , the interest component of EMI is around NAN%, while the principal component is around NAN%. Upto years, you have cumulatively repaid 100% of your total .

SBI Car Loan Calculator Formula

Emi Calculator Formula

Where,

  • 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

Here is an illustration of how SBI Car Loan EMI is calculated:

Let’s say you take out a car loan for ₹ 7,00,000 to be paid back over five years (or 60 months) at an interest rate of 10%. Your monthly payments for this loan after applying the above formula would be ₹ 14,873.

In above formula,

P = loan amount. This should be 85% of on-road price

n = tenure in months. For SBI, this can be 7 years.

r = rate of interest per annum. Current SBI interest on car loan is 8.00%

Tips to decide the right amount of EMI

  • Ascertain the amount you need to borrow: It is important that before approaching a bank for loan, you need to estimate the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. Also, based on the EMI you can service, try to opt for lowest tenure of loans as long tenure loans result in huge interest outgo.
  • Review your current obligations: Before, taking a loan it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
  • Calculate your SBI car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. SBI provides an LTV upto 85 % of on-road price and expects the borrower to fund the remaining value of property by own money. For example, at its lowest LTV, SBI would expect its borrowers to provide margin money. In case this margin payment is higher than your available funds as estimated by you, you might need to look for higher LTV loans, which may carry higher interest rates and hence, will result in higher EMIs.
    • Multiplier based loan amount eligibility – SBI calculates your loan amount eligibility by applying a multiplier to your net take home salary. This is the simplest method for calculating a loan eligibility used by banks. Generally it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your employer company based on its reputation, stability, size and growth in turnover.
    • FOIR based loan amount eligibility – SBI will also estimate your Fixed Income to Obligations Ratio (FOIR) to ascertain the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. SBI's assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short term loans to improve your eligibility.

Quick guide on SBI Car Loan

  • Key Features
    • Loan available for both salaried and self employed.
    • Borrowers within the age group of 21 and 65 years.
    • Maximum loan tenure of 7 years.
    • Interest rates in the range of 8.00% to 8.70%.
    • Lowest EMI of ₹ 1,559 per lakh.
  • Processing Fees: 0.51% of loan amount. Minimum ₹ 1,020 and Maximum ₹ 10,200
  • SBI vehicle loan calculator calculates EMI considering a combination of loan amount, interest rate and loan tenure.

Car loan EMI – EMI changes in case of prepayment

In case you prepay your vehicle loan, a small penalty is levied. Prepayment in SBI is Nil. When you prepay, the outstanding balance on your vehicle loan reduces. SBI gives you two options:

  • Reduce your loan tenure and keep EMI on your car loan unchanged: This option allows you to close your loan earlier and save the interest outgo associated with the remaining tenure. This is suitable for borrowers who feel that they have adequate income to continue servicing the same level of EMIs.
  • Reduce the amount of EMI and keep your loan tenure same: This option allows you to reduce your monthly EMI and hence, increases the availability of monthly surplus which you can deploy for other purposes. This is suitable for borrowers who anticipate higher monthly personal expenses and hence, would want to reduce their monthly EMI obligations.

FAQs

Why should I calculate SBI loan EMI before taking a loan?

It is advised to calculate vehicle loan EMI prior to taking a loan. There are several benefits of calculating your SBI housing loan EMI as discussed below-

  • In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable.
  • If you already know the EMI you have to pay each month, then you can plan your spending accordingly.
  • Based on the EMI amount, you can opt for making prepayment of your car loan in future when you have surplus amount.

What is the lowest EMI per lakh offered by SBI on Car loan?

SBI offers car loan at 8.00% interest rate and hence lowest EMI on per lakh loan amount is ₹ 1,622

Can I prepay my SBI car loan?

SBI offers you an option of prepayment at Nil charges.

Is there any processing charge on car loan from SBI?

Car Loan from SBI charges a processing fee of 0.51% of loan amount Minimum.₹ 1,020 and Maximum is ₹ 10,200

Will I get the car loan from SBI if I have a bad credit score?

No, for taking a loan from SBI, an applicant must have a good credit score of 700 and above. Usually, most of the banks avoid giving loans if you have low credit score.

How does a car loan repayment happen?

The repayment of a car loan happens in the form of an EMI (Equated Monthly Installment) through the customer's bank account. The customer is required to present a few post dated cheques and sign an ECS mandate in favor of the bank at the time of disbursing the loan.

Can I have a co-applicant while applying for a Car loan with SBI?

Yes, you can opt for a co-applicant to take car loan from SBI that will increase your car loan eligibility as the income of the co-applicant is also taken into account.


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SBI Car Loan News - Dec 2020
  • 2020-11-11 : SBI to focus on financial inclusion
    SBI is planning to increase the share of its newly created business vertical, financial inclusion and micro-markets from the current 12% to 20% by March 2022. The bank recently created a separate FI&MM vertical within the bank with an aim of financial inclusion of rural and semi-urban areas to improve customer experience in the hinterland.
  • 2020-11-05 : SBI net profit rises to ₹4,574 crores in Q2
    SBI September quarter net profit jumped 52% year-on-year to Rs 4,574.16 crore as the provisions declined during the quarter. Credit growth for the bank logged an improvement of 6.02% over the previous year driven by home, personal, car, two-wheeler and gold loan along with mudra and business loan. Total advances at the end of Q2 were at Rs 23.83 trillion. Further, total Deposits which includes fixed and recurring deposits grew at 14.4% on a yearly basis to Rs 34.70 trillion, out of which current account deposit grew by 8.55% YoY while saving bank deposits grew by 16.28 per cent YoY.
  • 2020-09-28 : SBI announced special festive benefits on car loans
    SBI announced a 100% waiver in the processing fee for all customers applying for a car through YONO. The bank is offering the lowest interest rate starting from 7.5% to customers opting for the car loan. Further, the bank will also get 100% on-road finance on select models.
  • 2020-09-22 : SBI offers up to 2 years repayment relief for home and retail loans
    State Bank of India announced the option to choose either a moratorium of up to 24 months or reschedule the instalments and extend the tenure by a period equivalent to the moratorium granted, for its retail customers. ​​​The bank is aiming to assist the customers amid the COVID 19 and economic slowdown.
  • 2020-09-11 : State Bank of India targets 3x growth in retail, MSME gold loans
    SBI is targeting 3x growth in retail loans which includes home, personal, car, two-wheeler and gold loans along with MSME loans. The bank has planned to use YONO, its digital banking platform, to cut down on response time and scale-up activity.
*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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