Car Loan Interest Rate

State Bank of India (SBI) is an Indian multinational banking and financial services company headquartered at Mumbai, Maharashtra. In terms of its assets, SBI is the largest government-owned Bank in India. Named amongst the Big Four Banks of India, SBI is trusted for financial services and products by people across the country.

Money cannot buy happiness, but it can sure buy you your dream car, which is close enough. SBI offers the best deal for financing your new car and turning your dream into reality easily with the lowest interest rates, lowest EMI, minimal paperwork and quick disbursement on car loans.

SBI car loan schemes are of the following types:

SBI offers a wide range of competitive SBI car loan schemes with wide eligibility benefits:

  1. SBI New Car Loan Scheme
  2. Used Car Loan
  3. SBI Combo Loan Scheme
  4. Certified Pre Owned Car Loan
  5. SBI Loyalty Car Loan Scheme
  6. NRI Car Loan
  7. SBI Nano Youth Car Loan Scheme

Why choose State bank of India car loans?

SBI car loans come with the following attractive features which makes it stand out amongst the other car loans:

  • You can avail loans for both new and used cars
  • Lowest interest rates
  • No advance EMI
  • Longest repayment period of 7 years
  • Total interest amount is calculated on daily reducing balance
  • SBI charges no fore-closure charges for certain car loan schemes
  • You can also enjoy optional SBI life cover
  • SBI offers finance reimbursement for the cars purchased out of your own money, at the interest rate applicable in case of new car financing, provided the car is not more than 3 month old.

Interest Rates

Car loan is taken to finance the purchase of a new or a pre-owned car. The lender usually lends a lump sum amount for the purchase which you will have to pay back within the loan tenure along with the interest. The interest is charged at a certain rate and this rate can be either fixed or vary according to the market fluctuations. In fixed rate loans, the interest rate stays the same for the entire tenure of the loan. However, for floating rate loans, the interest rate keeps changing with the change in the base rate of the loan. While taking a loan, rate of interest is the factor which everyone considers first, as it is the rate at which the interest is paid. One must calculate the total interest paid in case of loans for different Banks in order to compare different loan products.  Compare the rate of interest offered by different Banks before you make the final choice.

SBI Car Loan Interest Rates

SBI car loan come with the most competitive interest rates. The Bank offers both fixed and floating interest rates on car loans. Also, the interest is calculated on a daily reducing balance with monthly rests.

SBI car loan interest rates can vary according to the following factors:

  • Type of car you intend to buy : New or used cars
  • The tenure of the car loan
  • The car loan scheme you choose
  • Male borrowers and female borrowers : Women get a concession on the car loan interest rates
  • Car loan applicant : Your credit score, income group, employment type and similar things

Interest Rates For State Bank Of India Car Loans Can Be As Follows:

SBI Auto Loans Interest Rates are charged for 1 year MCLR 9.10% p.a. w.e.f. 01.08.2016. SBI car loan rates can vary in case of the different SBI car loan schemes offered;

Scheme Name


Interest Rate

For Men

For Women

SBI Car Loan Scheme

For All Tenure

0.60% above 1 year MCLR i.e. 9.70% p.a.

0.55% above 1 year MCLR i.e. 9.65% p.a.

SBI Combo Loan Scheme

For All Tenure

0.60% above 1 year MCLR i.e. 9.70% p.a.

0.55% above 1 year MCLR i.e. 9.65% p.a.

NRI Car Loan

For All Tenure

0.60% above 1 year MCLR i.e. 9.70% p.a.

0.55% above 1 year MCLR i.e. 9.65% p.a.

Certified Pre-owned car loan

For All Tenure

4.00% above 1 year MCLR i.e. 13.10% p.a.

SBI Loyalty Car Loan Scheme

Car Loan, Combo Loan, NRI Car Loan

0.50% above 1 year MCLR i.e. 9.60% p.a.

0.45% above 1 year MCLR i.e. 9.55% p.a.


Certified Pre-owned Car Loan Scheme , Used Car Loan Scheme

1.80% above 1 year MCLR i.e. 10.90% p.a.

1.75% above 1 year MCLR i.e. 10.85% p.a.

Super Bike Loan Scheme

For All Tenure

3.00% above 1 year MCLR i.e. 12.10% p.a.

Factors Affecting SBI Car Loan Interest Rates

SBI car loan interest rate can vary according to a number of factors pertaining to the loan and the borrower. These factors can be:

  • Credit History: Credit history acts as a crucial deciding factor regarding the interest rate that is charged for any loan one applies for. A higher credit score does not only help in getting a loan but also empower the borrower with a strong bargaining power.
  • Income Is To Debt Ratio: This helps the bank figure out the time someone might need to pay back. With a lower income to debt ratio the probability of default goes down and hence the lender has more confidence in their repaying abilities.
  • Loan Size and Down Payment: The higher is the down payment; lower will be the SBI car loan rates. However, for small cars and used cars, the norms might be slightly different. Also, generally higher interest rates are charged for a loan of shorter time period and vice versa.
  • Car model and age: In a car loan, the vehicle is considered as collateral and is pledged as surety for the loan to the bank for the loan tenure. Hence, keeping in mind the aspects of a car’s market value, the older the car; higher will be the SBI car loan rate.

Things You Need To Check Before You Apply For SBI Car Loan

When you borrow a loan it is very important that you calculate how much it will cost you? Loan cost implies the amount you will have to pay every month in order to repay the loan within the tenure of the loan. The amount which you pay every month is the EMI or Equated Monthly Installment of the loan. It is always advisable to check the monthly EMI before taking a loan so that you know the amount you will have to pay every month. You can use the SBI car loan EMI calculator to calculate your monthly SBI car loan payments easily. SBI car loan calculator is an easy-to-use online tool, available on SBI’s web portal or Try our different combinations of loan amount, interest rates and loan tenure, to arrive at an EMI you can comfortably every month.

Another important thing to do before you think to apply for SBI car loan is that you must check the terms and conditions on SBI car loan. The terms and conditions for SBI car loan will include everything from eligibility, documents required, minimum and maximum loan amount to interest rates and loan tenure.

Before you apply for the loan, it is very important that you check your eligibility for SBI car loan using the SBI car loan eligibility calculator. The SBI car loan eligibility calculator is an online calculator which available on which requires a few inputs related to you and the intended loan to check your eligibility for the loan. After you are done with checking your eligibility, you can check the required documents for SBI car loan, so that you have them ready for the loan application process.  Also check the additional SBI charges associated with the SBI car loan to make a well-informed car loan deal.