Friday, September 20, 2013

SBI increases Base interest rate to 9.80%

State bank of India has increased interest rate by increasing base rate from 9.70% to 9.80%. So all loans, whether two wheeler loan, four wheeler loan, home loan or personal loans will see an increase in lending rate due to this hike of interest rate by SBI.

The leading bank of India today announces hike of 10 basis point (basis point means 100 basis point means 1 percent) in interest rate due to change in monetary and liquidity conditions. Earlier the SBI has decreased it base rate by 5 basis point in February 2013 from 9.75% to 9.70%.

The new increase in base rate will be going to make two wheeler loan and four wheeler loan from SBI dearer than it was before. Let us see what will be the impact on sale of vehicles due to this change in interest rate.

New base rate of Interest is 9.80%

Friday, September 13, 2013

SBI Certified Pre-Owned Car Loan

SBI Certified Pre-Owned Car Loan

SBI offers certified pre owned car loan to its customers who want to avail Certified Pre-owned car loan from State bank of India. To get a pre certified car loan of SBI, borrower should provide details of certified used car dealers from whom he/she is willing to buy a used car. SBI imposes restriction on pre certified car loan i.e. loan on certified pre owned car will be only sanctioned if the pre owned car is not more than 5 years old.

What are the Features of SBI Loan on Certified Pre-Owned Car?

Any certified pre owned car loan seeker will be reimbursed car loan from SBI to borrow pre-owned car (used car) from a certified dealer if they fulfil eligibility criteria as documented by SBI for certified pre owned car loan. Here are features of Certified Pre owned Car loan from SBI
  • Low EMI as compared to other banks car loan
  • Borrower may opt a seven year long tenure of Pre-owned car loan
  • Low interest rate
  • A minimal pre payment charges
  • Reducing balance method interest calculation
  • Fast sanction of loan
  • Apply to any Branch throughout India

Eligibility to get Certified Pre owned car loan

Salaried person – Salaried person having income of Rs. 4,00,000 per annum can go for SBI Certified pre owned car loan.

Self Employed / Businessmen / Professional – Person other than salaried employee such as professional, businessmen, professionals, doctors, lawyers, engineers etc will get certified pre owned car loan if they have net profit or income of Rs. 6,00,000 per annum as per documentary evidence specially ITR(Income tax return) of previous years.

Documents required for SBI Certified Pre-owned car loan

  • Identity Proof (Voter ID card / Aadhaar Card / Passport etc)
  • Address Proof (Electricity Bill / Telephone bill /Rent Agreement / Ration card etc)
  • Salary slip and Form 16 from current employer
  • ITR of last two years duly certified by ITO (income Tax Officer)
  • Bank account statement of last six months

SBI New Car Loan Scheme – Buy New Car with SBI Four Wheeler Loan scheme

SBI New Car Loan Scheme – Buy New Car with SBI Four wheeler Loan scheme

SBI (State Bank of India) provides best car loan in lowest interest rate. Some of features on SBI car loan are really lucrative and anyone with a low monthly income can purchase new car through new car loan scheme of State Bank of India.

Why to go for SBI car loan even there are several other options available to car loan seeker? The answer of this question is very simple. Read the silent features of SBI car loan scheme and decide to go with SBI car loan option or not

SBI car Loan Scheme Features –

  • Borrower of SBI car loan need not to pay any amount in form of Advance EMI
  • A well long repayment tenure period of 7 Years (84 Months) is offered by SBI
  • Low base rate of interest and hence lowest rate of SBI car loan
  • Least EMI (Equated monthly Installment) on amount borrowed towards repayment of car loan amount
  • Daily reducing balance method interest calculation
  • SBI provide 85% to 90% LTV (Loan to value amount). It means borrower can get car loan up to 90% of total cost of new car that includes Vehicle + Insurance+ Accessories etc. Borrower need to pay only 10% of amount as advance.
  • EMI can be paid anytime during month.
  • SBI car loan includes free accident insurance cover and provides option for life insurance cover
  • Car loan Borrower can make pre payment of EMI’s without any penalty.
  • Less paper work
  • SBI car loan can be applied online and offline

Who are Eligible to borrow SBI new car loan


1- Salaried Person - A person whose salary account is maintained with State Bank of India at least from three previous months and is in employment of Central Government, PSU, Defense services, Railways having income of Rs.400000 or more are eligible to apply for SBI four wheeler loan.

Other prospective borrower of four-wheeler loan from SBI having salaried income should have gross annual income of Rs. 600000 to become eligible for SBI new car loan.

2-Self Employed / Businessmen / Professional - A person having business income and not a salaried employee need to provide proof through ITR (Income tax Return) of Rs. 600000 net profit or taxable income to avail SBI new car loan.

3-Any Other Person - Borrower other than above can avail four-wheeler loan from SBI on purchase of New car if they can provide sufficient proof of income (generally Rs.600000 annual) and bank think fit to grant loan.

Documents required

  • Bank account statement of last six months
  • 2 Recent passport size photograph of prospective borrower of four-wheeler loan
  • Identity proof (Voter ID/ PAN card / Aadhaar Card / Driving License etc)
  • Address proof (voter ID/ Ration Card/ Electricity Bill / Telephone bill etc)
  • Salary slip and form 16 (In case of salaried employee)
  • Income tax return of previous two years