SBI Used/Pre-Owned Car Loan

The State Bank of India (SBI) offers the SBI used car loan, a financing solution for individuals looking to purchase pre-owned vehicles, including passenger cars, SUVs, and multi-utility vehicles. This loan provides a significant portion of the car's value, making it accessible for employees, businessmen, and professionals.

Key benefits include competitive interest rates, flexible repayment options, and minimal documentation requirements. SBI also offers an attractive loan-to-value ratio, ensuring maximum funding based on the vehicle’s valuation. Borrowers can apply using essential documents like a PAN card, salary slip, and bank statement copy, while the option to include a co-borrower enhances eligibility.

With affordable EMIs and a streamlined process, the SBI pre-owned car loan ensures convenience and transparency. These features, combined with SBI’s robust network, make it a reliable and trusted option for financing second-hand vehicles.

Here is an overview of the SBI used car loan interest rate and fees, knowing which can help you make an informed decision:

Disclaimer: The information provided is for informational purposes only; please check the official SBI website or visit the nearest branch for the latest rates and charges.

To qualify for an SBI second-hand car loan, applicants must meet the following:

• Applicants must be between 21 and 67 years old

• Salaried individuals need a minimum net annual income of ₹3 Lakhs

• Self-employed professionals and others require a minimum net annual income of ₹3 Lakhs

• Individuals in agriculture and allied activities must have a minimum net annual income of ₹4 Lakhs

• Proof of stable employment or consistent business operations is necessary

• A satisfactory credit score and history are required for loan approval

To apply for an SBI used car loan, applicants need to provide specific documents to verify identity, income, and residence. The required documentation includes:

Proof of Identity

Acceptable documents include a PAN card, passport, driver's licence, or voter ID card.

Proof of Residence

Recent telephone bills, electricity bills, property tax receipts, passport, or voter ID card serve as valid address proof.

Income Proof

• Salaried individuals must provide the latest salary slip, Form 16, or IT returns for the last two years

• Self-employed professionals and businessmen must provide three years’ IT returns, assessment orders, balance sheets, and profit & loss statements

• Agriculturists and those involved in allied activities must furnish documents detailing landholding and cropping patterns

Bank Statements

Statements from the past six months to assess financial stability

Photographs

Two recent passport-sized photographs of the applicant

Applying for an SBI used car loan is a straightforward process designed for customer convenience. Here's how to proceed:

Online Application

Here are the steps to apply for an SBI used car loan online:

1. Visit the official SBI website and go to the 'Auto Loans' section

2. Head to the pre-owned car loan section

3. Fill out the online application form with personal and financial details

4. Upload required documents, including proof of identity, income, and residence

5. Submit the application for review and wait for SBI to contact you for further steps

YONO App

Here are the steps to apply for an SBI used car loan via the YONO app:

1. Log in to the YONO app and select 'Loans' from the menu

2. Choose 'Car Loan' and complete the eligibility check

3. Fill out the details asked in the application and upload the required documents

4. Submit the application through the app for processing

Branch Visit

Here are the steps to apply for an SBI used car loan by visiting a branch:

1. Visit the nearest SBI branch and consult a loan officer for assistance

2. Obtain and fill out the loan application form

3. Submit the required documents, including proof of identity, income, and residence

4. Wait for the bank to process your application and update you on the approval status

The SBI Used Car Loan EMI Calculator is a user-friendly tool that simplifies financial planning. It provides quick, accurate estimates of monthly repayments, ensuring transparency and informed decision-making. Here’s how it can help you manage your finances effectively:

1. Visit the official SBI website and navigate to the EMI calculator page

2. Input the total loan amount you wish to borrow for your used car

3. Enter the applicable interest rate for the SBI used car loan

4. Choose the repayment tenure in months or years, up to the maximum permissible limit

5. Click "Calculate" to instantly view your monthly EMI amount, along with a detailed breakdown of interest and principal payments

6. Modify the loan amount, interest rate, or tenure to find an EMI that suits your budget

Several factors influence the loan amount you can obtain through an SBI used car loan:

Income Level

Your net annual income determines the maximum loan amount, with higher incomes qualifying for larger loans.

Repayment Capacity

SBI assesses your ability to repay the loan based on existing financial obligations and credit history.

Car's Age and Condition

The vehicle's age, condition, and valuation affect the loan amount, as older cars may have lower financing limits.

Loan-to-Value (LTV) Ratio

SBI finances up to 85% of the car's ex-showroom price, meaning you'll need to pay the remaining 15% as a down payment.

Credit Score

A higher credit score can enhance your eligibility for a larger loan amount, reflecting your creditworthiness.

Tenure of the Loan

Longer repayment tenures may allow for a higher loan amount but could result in a higher total interest cost.

Employment Type and Stability

Salaried individuals with stable employment or self-employed professionals with consistent business operations are more likely to qualify for higher loan amounts.

The SBI used car loan provides an efficient and affordable solution for financing pre-owned vehicles. With features like competitive interest rates, high loan-to-value ratios, and flexible repayment options, it caters to diverse borrower profiles. Its minimal documentation and convenient application process make it an excellent choice for hassle-free vehicle ownership.

Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.