The actual interest rate will be based on one's credit score procured by SBI from any of the Credit Information Companies.
The push for Electric Vehicles in the country is beginning to be felt. To make electric cars popular, more and more incentives are expected to be rolled in the time to come. The country’s largest lender, the State Bank of India (SBI), on the occasion of World Earth Day has launched India’s first ‘Green Car Loan’ (Electric Vehicle) to encourage customers to buy electric vehicles.
To achieve the purpose, SBI will offer loans at 20 bps lesser than the interest rate on the existing car loan schemes. SBI Green Car Loan (Electric Vehicle) scheme will have a longer repayment period of up to 8 years as against 7 years in its regular car loan scheme. Further, the bank is waiving off the processing fee for the first six months of the launch.
Already SBI is offering the lowest Interest Rates and thus have the lowest EMI and come with the longest Repayment Tenure of 7 years on regular car loans. SBI car loans come with 90 per cent financing on ‘On-Road price’, that includes Registration, Insurance and Extended Warranty, Total Service Package, Annual Maintenance Contract and Cost of Accessories. Further, Interest on SBI car loans is calculated on Daily Reducing Balance and does not have any Pre-Payment Penalty or Foreclosure Charges.
The maximum loan amount for regular employee of State or Central Government, Public Sector Undertaking, Private Company or a reputed establishment is 48 times of the Net Monthly Income.
For Professionals, self-employed, businessmen, proprietary or partnership firms who are income tax assesses, the maximum loan amount is capped at 4 times Net Profit or Gross Taxable income as per ITR after adding back depreciation and repayment of all existing loans.
Currently, the fixed rate of interest on car loans (1-year MCLR: 8.50 per cent) ranges between 9.25 per cent to 9.75 per cent. As per SBI website, the Mean Rate for Auto Loans 9.52 per cent.
The actual interest rate will be based on one’s credit score procured by SBI from any of the CICs. CIC stands for Credit Information Companies. For a loan amount of Rs. 5 lakh and above, the lower CIC score will be considered from either of the two CICs to get the interest rate.
Interest rates on New Car Loans based on CIC scores are as follows: (Effective 10.04.2018)
Corporate Salary Package: 0.75 per cent per annum above 1-year MCLR i.e., 9.25 per cent per annum
Other than Corporate Salary Package:
- CICs score of 750 and above: 0.75 per cent per annum above 1 year MCLR i.e., 9.25 per cent per annum
- CICs score of 700 and up to 749: 0.95 per cent per annum above 1 year MCLR i.e., 9.45 per cent per annum
- CICs score of less than 700: For Men: 1.25 per cent per annum above 1-year MCLR i.e., 9.75 per cent per annum and For Women: 1.20 per cent per annum above 1 year MCLR i.e. 9.70 per cent per annum
On Green Car Loan, the rate of interest will be 20 bps lesser than the interest rate on the existing car loan schemes.