SBI Car Loan Interest Rate for Govt Employees, Application and Repayment for New Car 2024
SBI is one of the key priority banks which people think of while applying for loan as it is a government owned entity and all people from all over India hold bank account in SBI . Applying for any credit facility from SBI especially for a Government sector employee is easy as he will be able to claim into multiple schemes of Government to reduce the loan stress or the interest amount payable compared to any private bank .
With SBI Car loan can be applied online or through the nearest SBI bank branch in their respective loan department .For government employees , who want to apply for a Car loan and want to know the terms and conditions of SBI bank to apply for the loan . Then in this article , you will be helped to know all about SBI Car loan .
SBI Car Loan Essentials
Just like any private bank , car loan can be applied from SBI based on the on road price of the car and the quotation received from the car agency . Whether buyer of the car is a government employee or a private sector employee , SBI offers loan at lucrative interest rate options and on standard EMIs. The loan is provided with the minimum documentation and disbursal options . The EMI of the car loan is decided based on the total amount disbursed and the Interest rate applicable as per provided by RBI .
For application of SBI Car loan for government sector employees it is important that all necessary documents as an applicant shall have to be provided and all conditions are to be met including minimum salary threshold of the applicant , documents and the financial background of the applicant . SBI Car loan can be availed directly or indirectly both through the car agency or from the bank branch .
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SBI Car Loan for Government Employees Application and Features
For application of SBI Car loan , Government employees can make straight application to the loan department of SBI with documents including , the Aadhaar details of applicant , the Income tax returns of applicant , the car loan quotation, the previous loan statement , the Salary slip from Government entity and Address proof , other documents as requested by the bank . The salient features of SBI Car loan application include :
- SBI loan interest at lower rates and EMI .
- Loan availability for upto 7 years.
- Providing loan on the On road price of the car .
- Loan covering Registration and Insurance charges also .
- Loan shall be calculated on the basis of Daily reducing balance .
- Loans can be availed for purchase of passenger cars , SUV and Multi utility vehicles for commercial purpose.
- Loan for upto 90 percent of the loan amount shall be provided .
- EMI for loan would be deducted for an amount on no advance EMI.
- Optional SBI life insurance shall also be provided along with the loan for extra coverage.
Based on the above conditions and features , the loan shall be provided to the applicant . Application for SBI Car loan from the SBI website can be done through the official SBI loan application link .
How does SBI Car Loan for Government Employees Repayment Works ?
Once the loan application is approved , loan is directly disbursed to the bank account of the government employee or the amount is directly paid to the car agency and a standing balance of loan is taken from the applicant directly from the account of the holder through EMI every month . There can be different situations where a SBI loan applicant can repay their loan in EMIs :
- If the loan is repaid in EMIs then the amount of loan is transferred to the account of the car agency and EMIs are taken from the bank account of applicant with SBI .
- Other way could be the loan amount is provided to the bank account of the account holder for payment to the car agency and repayment of loan is undertaken by way of EMIs from the account of loan applicant .
- Applicant could also attach bank account of some other bank or some other branch to the loan even if he is not an account holder in SBI , then loan amount shall be deducted from the other bank account of the applicant .
With EMI , there is included a standard rate of interest which is charge on annual interest basis . For instance , if the car loan is issued at 9 percent interest and the EMI amount is provided at 8500 , then Rs 8500 shall have to be paid every month till the loan is completed . No additional interest shall be included in it .
SBI Car Loan Interest Calculations for Government Employees
SBI Car loan is available to applicant on the below specified interest rates including :
| CIC Score | Term of Loan | ||||
|---|---|---|---|---|---|
| 3-5 years | Above 5 years | ||||
| 775 & ABOVE | 0.15% + 1 Yr MCLR | 8.65% | 0.25% + 1 Yr MCLR | 8.75% | |
| 757 – 774 | 0.25% + 1 Yr MCLR | 8.75% | 0.35% + 1 Yr MCL | 8.85% | |
| 721 – 756 | 0.50% + 1 Yr MCLR | 9.00% | 0.60% + 1 Yr MCLR | 9.10% | |
| 700 – 720 | 0.75% + 1 Yr MCLR | 9.25% | 0.85% + 1 Yr MCLR | 9.35% | |
| 650 – 699 | 0.85% + 1 Yr MCLR | 9.35% | 0.95% + 1 Yr MCLR | 9.45% | |
| -1(101-200) | 8.75% to 9.10% | ||||
The credit score of the applicant will be calculated by the bank based on the number of credit goods availed from different banks , the bank balance ,the monthly or the annual salary and the asset holding with the applicant .
SBI Car Loan Processing Charges for Government Employees
There are standard charges provided for application of SBI Car loan by government employees which are generally charged by bank on personal loan . For SBI Car loan , the processing charges will be charged at the time of application of the loan and no additional charges will be included in it . It is necessary for the applicant to know about the bounce and non-payment dues charges of the EMI which is failed or is bounced in case of any problem by the customer .
The processing charges payable on Car loan by SBI Customer being a government employee is around 1 percent or upto Rs 1000 + GST , which shall be deducted from the bank account of applicant before the loan is disbursed or the loan application is processed.
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FAQ
How much time is required to apply for SBI loan by Government employee ?
The loan amount is disbursed within 24 to 48 hours.
Does SBI Car loan is provided interest free to government employees ?
No , SBI Car loan to government employees shall be charged at lower rate.
Will lower interest rate is charged for SBI Car loan if a security is provided against the loan ?
Yes based on the credit score and deposits with the bank , the interest rate on loan shall be reduced.
