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SBI Car Loan Review: Interest Rates @ 7.70%

State Bank of India (SBI) offers a range of auto loan products with competitive interest rates and generous car loan eligibility criteria.

SBI Car Loan Review: Interest Rates @ 7.70%

State Bank of India (SBI) offers a range of auto loan products with competitive interest rates and generous car loan eligibility criteria.

Editor's Rating


Good for

  • Borrowers with a high CIBIL score
  • Low equated monthly instalments (EMI)

Bad for

  • Low income earners and CIBIL score
  • Borrowers under the age of 21

With competitive car loan interest rates starting from 7.70%, loan tenures up to 8 years, and a low processing fee of only 0.20%, State Bank of India is a great lender to consider whether you are seeking a new car, used four-wheeler, or electric vehicle. However, it's important to note that high income earners and borrowers with good CIBIL scores will avail the best car loan deals at SBI.

Summary of SBI Car Loan
New car loan rates from 7.75%
Used car loan rates from 9.50%
Loans for electric cars available
Car loan tenures up to 8 years

Table of Contents

What Makes SBI Car Loans Stand Out to Borrowers

Whether you're seeking a new or used car loan, SBI offers great car loan packages for borrowers who are seeking low EMIs and processing fees. Below, you can find the range of car loan schemes offered by State Bank of India, including what makes them stand out amongst the competition.

SBI Auto LoanFeatures
SBI New Car Loan
  • Loan tenure up to 7 years
  • Up to 90% of on road financing
  • Optional SBI Life Insurance cover available
SBI Certified Pre-Owned Car Loan
  • Loan tenure up to 8 years
  • Loan amount up to 10 lakhs
SBI Assured Car Loan Scheme
  • 100% of fixed deposit for on road pricing
  • Age requirement minimum of 18 years
  • No income requirement
SBI Car Loan Lite Scheme
  • Free personal accident insurance
  • No prepayment penalties
  • 100% ex-showroom financing
  • No income proof scheme available for self-employed borrowers
SBI Green Car Loan
  • For electric cars
  • 0.20% interest rate concession for fixed rates
SBI Loyalty Car Loan Scheme
  • For home loan borrowers
  • 100% on road financing
SBI New Car Loan Scheme for NRIs
  • 85% on road financing
  • No prepayment penalty fees
  • Resident Indian needed as guarantor

SBI Car Loan Interest Rates

SBI description
SBI description

SBI's minimum car loan interest rate lands within the top 10 lowest interest rates amongst the lenders our financial team reviewed.

For new car loan interest rates, SBI charges between 7.75% and 8.45%, which is relatively lower than our calculated average of 9.06%. In addition, women with CIBIL scores between 600 and 649 can receive a 0.05% concessional interest rate on their car loan. If you are a woman or applying with a female co-applicant, you should consider SBI to avail lower car loan interest rates.

SBI pre-owned car rates range from 9.50% to 10.50%, with an average lending rate of 9.52%. Compared to the average lending rates of other banks — for instance, HDFC's average lending rate of 13.33% — you are more likely to avail a lower interest rate at SBI as long as you match the lender's eligibility criteria.

SBI Auto LoanInterest Rate Range
SBI New Car Loan Scheme7.75% - 8.45%
SBI New Car Loan Scheme for NRIs7.75% - 8.45%
SBI Certified Pre-Owned Car Loan9.50% - 10.50%
SBI Green Car LoanNot advertised.
SBI Assured Car Loan Scheme7.75% - 8.45%
SBI Car Loan Lite Scheme10.20% - 11.20%
SBI Loyalty Car Loan Scheme7.70% - 9.20%

SBI Car Loan Eligibility Criteria

Consider this if you seek a competitively priced car loan

Interest Rates 7.75% - 8.45%
Processing Fee 0.20%, minimum of Rs. 500, maximum of Rs. 3750
Margin 90%
Loan Tenure 7 years

SBI car loan eligibility criteria is more inclusive than other lenders we analysed. First, to be eligible for the car loan application, you should be between the ages of 21 and 67. Therefore, if you are a senior citizen in need of a car loan, consider SBI as many other lenders have an age cutoff from 60 to 65 years old.

Regarding car eligibility for used car loans, SBI finances pre-owned cars up to 8 years old. Additionally, it's important to note that your car loan tenure depends on the age of your secondhand car. Your final loan tenure will be calculated as 8 years minus the age of your car (with a maximum of 5 years). In other words, you're eligible for a used car loan tenure between 3 and 8 years. New car loan buyers, on the other hand, benefit from a long loan tenure maximum of 7 years no matter the model of the car.

Depending on the SBI car loan scheme you apply for, you may be subject to higher than average income requirements and varying funding margins. Below, you can find income requirements and car loan financing based on your vehicle loan of choice and job position.

SBI Auto LoanIncome RequirementMargin
SBI New Car Loan Scheme
  • Salaried & Self Employed: Rs. 3 lakhs p.a.
  • Agriculturalists: Rs. 4 lakhs p.a.
SBI New Car Loan Scheme for NRIsUSD 1000 p.m. or USD 12,000 p.a.85%
SBI Certified Pre-Owned Car LoanNot advertised.80%
SBI Green Car Loan
  • Salaried & Self Employed: Rs. 3 lakhs p.a.
  • Agriculturalists: Rs. 4 lakhs p.a.
SBI Assured Car Loan SchemeNIL100%
SBI Car Loan Lite SchemeRs. 2.5 lakhs p.a.75%
SBI Loyalty Car Loan SchemeRs. 2 lakhs p.a., including income of co-applicant100%

SBI Car Loan Processing Fee and Other Charges

SBI Auto Loan SchemeProcessing Fee
SBI New Car Loan Scheme0.20%, minimum of Rs. 500, maximum of Rs. 3750
SBI Pre-Owned Car Loan Scheme0.20%, maximum of Rs. 5000
SBI New Car Loan Scheme for NRIs0.25%, maximum of Rs. 5000
SBI Loyalty Car Loan Scheme0.125%, minimum of Rs. 250, maximum of Rs. 2500
SBI Car Loan Lite Scheme0.50%
SBI Assured Car Loan SchemeNot applicable.
SBI Green Car LoanNIL

In addition to competitive interest rates, the SBI used car and new car loan have very low processing fees of 0.20%. It's important to calculate your car loan costs with processing fees in mind, as some banks can charge up to 2.00% of the total car loan amount and significantly drive up your total cost of borrowing.

Other SBI charges like a 1.00% prepayment penalty, 2.00% late payment fee, and 3.00% foreclosure fee are also comparably lower than other banks we reviewed, making the SBI car loan a good option for saving costs in the future.

SBI Car Loan: Apply Online

You can begin your car loan application online or in person. Applicants who want to apply for an auto loan online will benefit from SBI's step-by-step application process.

Documents Required for Car Loan from SBI

State Bank of India requires minimal documentation for proof of address, identity, income, and car purchase. Used car loans and new car loans require different documents, which is standard amongst car loan lenders.

However, there are a few exceptions depending on your qualifications. For new car loans, salary account holders who have an SBI branch account for more than 12 months do not need to submit a Form-16, ITR or 6 months bank statements. Additionally, agriculturalists have a specific set of required documents and do not need to submit an ITR.

SBI Car Loan Customer Care

If you have any queries regarding the SBI car loan application process, you can reach out to SBI customer care.

Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.