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Car Loan

SBM was established in the year 1913 as Bank of Mysore Ltd. under the patronage of the erstwhile Govt. of Mysore, at the instance of the banking committee headed by the great Engineer-Statesman, Dr. Sir M. Visvesvaraya. State Bank of Mysore is headquartered in Bengaluru. The Bank is one of the five associate banks of the State Bank of India (SBI) and is a leading nationalized bank in the country. The bank was appointed as a Reserve Bank of India agent in 1953 with allowance to carry out Government business as well as various treasury operations. In March 1960 became a State Bank of India subsidiary in accordance with the State Bank of India (Subsidiary Banks) Act of 1959. State Bank of Mysore offers a wide range of products including various types of car loan to cater to the requirements of various segments of society. At present, there are plans to amalgamate the State Bank of Mysore with the State Bank of India.   

The Bank has a widespread network of 1,037 Branches (as on 31.03.2016) and 9 Extension Counters spread all over India including 20 Small and Medium Enterprise Branches, 8 Industrial Finance Branches, 3 Corporate Accounts Branches, 7 Specialized Personal & Services Banking Branches, 9 Agricultural Development Branches, 3 Government Business Branches, 2 Specialized NRI Branches, offering wide range of services to the customers besides 5 Service Branches and 1 Asset Recovery Branch rendering backup support to the Bank.

Types and Features of SBM Car Loan

State Bank of Mysore offers multiple differentiated types of car loans such as new car loan and used car loan according to the requirements of various groups of individuals.

  1. State Bank of Mysore Car Loan

State Bank of Mysore (SBM), one of the leading public sector banks in India, is also a preferred provider of car finance plans for the purchase of new and old vehicles of various makes as well as models. Customers can apply for a State Bank of Mysore Car Loan for brand new cars and also for used cars which are not over 5 years old. The bank provides a comfortable interest rate and tenure of repayment. These factors, alongside SBM’s long standing aura as a banking behemoth make the State Bank of Mysore loan for a new car an irresistible option for buyers and one of the best car loans in India.

Features of State Bank of Mysore Car Loan

  • State Bank of Mysore provides car loan schemes for both new and used cars, be it a passenger car, jeep, Multi Utility Vehicles (MUV) or an SUV. A Pre-owned car loan from State Bank of Mysore is available on cars not older than 5 years.
  • State Bank of Mysore Car Loans must be repaid in a maximum of 84 EMI’s or 7 years tenure. Also note that, no pre-closure or pre-payment penalty will be charged across all SBM car loans.
  • SBM Car loan disbursal is quick and flexible paid in forms of orders, DD, NEFT or RTGS transfers by the bank to the dealer.
  • Insurance cover is offered while availing a car loan from State Bank of Mysore.
  • Floating type of interest rate is applied on all SMB Car loans, used or new.
  • In the case of pre-owned cars, a processing charge of 0.20% is applicable.
  • SBM does not offer pre-approved car loans.
  • No charges for foreclosing the loan are levied on SBM car loans.
  1. State Bank of Mysore Used Car Loan

Apart from SBM plans and services like Personal Loan, Housing Loan, Mortgage Loan, Educational Loan, Car Loans offered by State Bank of Mysore for purchase of new cars as well as used cars or pre-owned cars is also popular among buyers. Benefits like smooth processing, affordable interest rates and free accident cover (death risk only) from the bank, have made it really popular bank and people prefer to apply for a SMB car loan over many other bigger banks.

Features of the Used Car Loan

  • State Bank of Mysore Car Loans enable you to purchase a wide category of cars from passenger cars and Jeeps to Multi Utility Vehicles (MUVs) and Sports Utility Vehicles (SUVs) which are not more than 5 years old from the date of registration.
  • The processing fee for SBM used car loan is as low as 0.20%.
  • To avail a car loan from State Bank of Mysore, you need to submit a certificate of fitness/valuation for the car from a reputed garage. This works as a huge benefit because it provides you an authentication of the vehicle being in a good/fit condition despite being used.
  • Accident Insurance Cover, only in case of a death risk, is also offered to its customers on used car loan provided by State Bank of Mysore. This is a huge plus as given the unpredictable traffic conditions these days, accidents are quite common.
  • A salaried individual is eligible to avail any loan amount up to 48 times of his/her net monthly income. Whereas, self-employed professionals, businessmen (proprietary or partnership firms) can avail any loan amount up to 4 times their respective net monthly income.
  • Agriculturists can avail any loan amount up to 3 times of their net annual income on availing SBM Used car finance plans.
  • The repayment tenure for a car loan is 7 years from the date of original purchase of the vehicle.

Eligibility for SMB Car Loan

Meeting the easy requirements listed below puts the applicant in good stead for car loan from State Bank of Mysore, to purchase their dream car. The following basic requirements for SBM Car loan are imposed in order to qualify a prospective car loan borrower for a car loan:

  1. Employment Type: The loan applicant can be a salaried or self-employed professional from a public or private sector firm.
  2. Income Criteria: He must satisfy the minimum salary requirements of the Bank. The salary of spouse can also be added for fulfilling this criterion.
  • The minimum required Net annual Income for a Salaried individual is Rs. 3 Lacs. After this, an assured maximum loan amount equal to 48 times of the Net Monthly Income can be availed.
  • Self-employed individuals and pensioners must have a Net Profit or Gross Taxable Income of Rs. 4 Lacs. After this, an assured maximum loan amount equal to 4 times of the Net Monthly Income can be availed.
  • Agriculturists together with the income of the co-applicant must have a Minimum Net Annual income of Rs.4 lakhs. Maximum loan amount assured will be 3 times of Net Annual income.
  1. Age Criteria: The car loan subscriber must be no less than 21 years old when you apply for a State Bank ok Mysore car loan and a maximum of 65 years old at the time of loan expiry.
  2. Check Your SBM Car Loan Eligibility

Eligibility for SBM car loan depends upon various factors. These factors also determine your car loan amount eligibility:

  • Income levels: Higher the income better the chances for a higher loan amount
  • Income regularity: Regular income improves chances for loan approval
  • Kind of Car: New cars are more easily financed than used cars; a high-end model will be expensive which means the borrower has to be able to pay the portion not funded by the loan (LTV ratio)
  • Longer tenors will enhance repayment capacity

Even after shortlisting our options as per the criteria above, a multitude of available options make it difficult for borrowers to confirm their eligibility for a car loan provided by State Bank of Mysore. Paisa Bazaar can resolve this confusion by allowing you to input your loan related information in a user-friendly eligibility calculator for instant quotes. Following the receiving of details, the calculator displays the result in a convenient manner and also presents to you the available car loan options, plus, facilitating easy comparison of car loan offers from different lenders. You can also apply for a loan you choose, availing unique deals on car loans on PaisaBazaar.

To understand the criteria you need to fulfill to be eligible for a State Bank of Mysore car loan, you can Check Your Car Loan Eligibility at PaisaBazaar.

Applicable Interest Rates on SBM Car Loan

The generally applicable car loan interest rates in India differ from bank to bank. These generally depend on criteria unique to every lender and base rates. However, in India, car loan interest rates ranging between 10%-15% are usually expected and considered competitive. The State Bank of Mysore Car Loan interest rates are of floating type and are really competitive. The interest rate offered by SBM is 0.45% above Base Rate, which is presently 10.10% per annum.

SBM Used Car Loan Interest Rates

SBM car loan interest rates on Used Cars are affordable and linked to the Base rate. It is as follows:

  • The rate of interest for a car aged up to 3 years – Base Rate +6.50%, which is equal to 16.75% per annum.
  • The rate of interest for car aged between 3 to 5 years – Base Rate +7.25%, which is equal to 17.50% per annum.

Additional Charges for State Bank of Mysore Car Loans

Type Of Loan

Time Period from the 1st EMI

Foreclosure charges

New Car Loan

within 1 year

4 % of POS

within 13-24 months

3% of POS

post 24 months

Zero Foreclosure


Fees & Charges

Stamp Duty

At actual

Late Payment Penalty

2% per month

Processing fees

  • Up to 2.5 lakhs : Rs.2825
  • Over Rs. 2.51 Lakhs up to 4 Lakhs: Rs. 3850/-
  • Maximum chargeable fee – 5000

Cheque swapping charges


Loan cancellation / re-booking charges

In the event of cancellation, interest charges from disbursement date till refund of disbursement amount will be borne by the customer

Duplicate Repayment Schedule charges


Legal, Repossession & Incidental charges

At actual

Duplicate no due certificate / NOC


CIBIL Charges (only on request)

Rs. 50/-

Loan Reschedulement charges

Rs. 1000/-

Special NOC


Repayment of the Car loan

Repayment is the periodic installment you make to pay off the car loan borrowed. There are several ways to pay back your loan including regular EMI, step-up or step-down EMI among many others. The borrowed car loan amount is paid back to the lender bank in the form of Equated Monthly Installments or EMI, which is a fixed amount of monthly car loan payments, containing both the principle amount and the applicable interest, made to the lender at a specified date each calendar month, until the full loan amount is paid off. The State Bank of Mysore Car Loan EMI amount applicable is Rs. 1665 per lac for tenure of 7 years, that is, 84 installments at SBM car loan interest rate of 10.10% per annum.

To avoid any confusions and last moment panics later, you must be in the clear about the repayment method you choose before signing the car loan agreement and deciding it mutually with the lender prior to the beginning of your repayment period. Following are the commonly offered EMI amount repayment methods:

  1. Electronic Clearing System (ECS)

This mode is for customers who do not have a State Bank of Mysore account and order their respective banks to deduct the EMIs from their accounts and transfer the same to State Bank of Mysore against loan repayment.


  1. Standing Instructions (SI)

This mode is the most common, available to existing State Bank of Mysore account holders of the bank, be it individuals having a salary account, current account or a savings account with State Bank of Mysore can give fixed instructions to the bank to automatically debit the EMI amount every month from their respective accounts.


  1. Post-Dated Cheques

This too is a mode beneficial for individuals not having an State Bank of Mysore account. They need to submit a set of Post-dated Cheques from their respective accounts. These cheques will automatically be released by the bank itself as and when they fall due.


You can calculate EMI for State Bank of Mysore Car Loans without hassles by using the Paisa Bazaar Car Loan EMI calculator. This car loan EMI Calculator will need you to enter a your State Bank of Mysore car loan details like the loan amount, repayment tenure and the applicable interest rate. Once you enter the complete information, a well curated table of car loans matching your needs along with the car loan EMI will be displayed, enabling you to compare your loan to other available car loan offers. You can calculate your car loan EMI through Paisa Bazaar here or using the SBM car loan EMI calculator given on the Bank’s website.

Once you compare and are finally satisfied with your car loan decision, you can apply for the SBM car loan online at Paisa Bazaar. We then will forward your request, with the details you enter, to the bank. The perks when you apply for a car loan online, the bank official will contact you regarding the loan and will process your loan request, without you having to go from one place to another.

Documents Required for State Bank of Mysore Car Loan

SBM car loan is available at highly competitive rate of interests, a repayment tenure as loan as 7 years (84 EMIs), no pre-closure penalty on car loans, Free accident insurance cover (death risk only) along with simple and quick document processing makes car loans from SBM a sought after option.

Key documents required are as follows:

  • Previous 12 months’ bank account statement and photographs
  • Identity and Address proof documents (individual/business)
  • Latest salary certificate/pay slip
  • TDS certificate/Form 16 (for salaried people)
  • Acknowledged Income Tax Returns for previous 2 years (for self-employed)
  • Signature identification from present bankers
  • Vehicle Invoice
  • Special document for pre-owned car - Certificate of fitness / valuation certificate

Apply for State Bank of Mysore Car Loan Online

You can apply for a SBM car loan online either through the Paisa Bazaar website. Applying for a State Bank of Mysore car loan on Paisa Bazaar is quick and a simple process. To apply, follow the following steps:

  • Visit www.paisabazaar.com
    • Select ‘Car Loan’, and it will land you to a car loan eligibility calculator. Fill in all the fields and at the end of it, Paisa Bazaar will sort down the best Car loans available matching your requirements, for you to choose from.  
    • Once you have made up your mind to avail State Bank of Mysore car loan, select the car loan option and quote offered by the bank by clicking on it.
    • After you submit the online application, you shall receive an instant e-approval from Paisa Bazaar.

This application along with the information you provide is then transferred to your chosen bank from wherein a customer support executive from the same will get in touch with you and take the process forward.

State Bank of Mysore Car Loan FAQs

1. What can the car loan scheme from State Bank of Mysore be used for?

A. The Mysore Bank car loan can be taken to buy new cars as well as pre-owned cars.

2. Is there a margin for State Bank of Mysore car loan?

A.State Bank of Mysore Car Loans have a minimum margin of 15%.

3. What are the additional charges associated with State Bank of Mysore Car Loan?

A. A fee of 0.20% of the loan amount (Min. Rs.500 & Maximum Rs.10,000) for processing and an inspection charge of Rs. 350 is charged from the borrower. But, there is no foreclosure charges associated with the loan.

4. What happens if I do not pay my EMI on time?

A. You need to pay your car loan EMI on time otherwise you will be charged a penal interest on the outstanding amount. For loans above Rs.25,000/- if the irregularity exceeds EMI for a period of one month, then penal interest at the rate of 2% p.a. above   the applicable rate would be charged on the overdue amount for that period.

5. Do I need a guarantor for my car loan?

A. Not necessarily, but if you fail to meet the income requirements of the bank then you might require a third party guarantor.

6. How much loan amount am I eligible for?

A. You are eligible for 48 times Net Monthly Income subject to EMI/ NMI ratio of 50%.

7. What is the max tenure provided by State Bank of Mysore on car loans?

A. The maximum repayment tenure for a car loan from the State Bank of Mysore is 84 months.

8. What is the max loan amount that is approved as a car loan by State Bank of Mysore?

A. The max loan principal approved by State Bank of Mysore does not exceed 85% the vehicle’s on-road price.

9. Will the processing fee be returned if the car loan application is rejected by State Bank of Mysore?

A. When a car loan is rejected, 25% of the processing fee for State Bank of Mysore car loan will be retained by the bank.

10. What are the processing fees charged for a car loan from State Bank of Mysore?

A. SBM charges up to 0.50% of the car loan amount sanctioned as the applicable processing fees. The minimum processing fees charges are Rs. 500 and the max is capped at Rs. 2500.

11. How will the car dealer get the car loan money from State Bank of Mysore?

A. State Bank of Mysore ideally disburses car loans to the car dealer through RTGS/NEFT transfers, DD or pay orders.

12. What is the max loan principal sanctioned by State Bank of Mysore for a car?

A. The maximum loan principal amount sanctioned by State Bank of Mysore cannot exceed 48 times the net monthly income of the applicant.

13. Is any collateral required to apply for the loan?

A. A vehicle bought using a State Bank of Mysore car loan must be hypothecated with the bank and this information must be included in the vehicle’s blue book.

14. Does a car loan borrower have to provide 3rd party guarantee?

A. Though a 3rd party guarantee is often not required, you may be required to provide such guarantee in case of poor credit history or low income level.   

15. Do borrowers get an outstanding balance statement from State Bank of Mysore?

A. Yes. On the 31st of March each year, State Bank of Mysore issues an outstanding loan balance statement. This is done once a year.

16. What is the car loan amount eligibility on SBM car loans?

A. The following criteria are applicable in determining the car loan amount eligibility:

  • For a Salaried individual with minimum NAI of Rs. 3 Lacs – 48 times of the Net Monthly Income can be availed.
  • For a Self-employed individual with a minimum Net Profit or Gross Taxable Income of Rs. 4 Lacs – 4 times of the Net Monthly Income can be availed
  • Agriculturists together with the income of the co-applicant with a Minimum Net Annual income of Rs.4 lakhs – 3 times of Net Annual income

17. Does the bank charge for inspection of car?

A. Yes. A State Bank of Mysore approved inspector will charge Rs. 350 each year during the loan tenure to figure out the status of the car.

18. Should the CIBIL score of the applicant be furnished when an application is being made for a car loan?

A. Yes, applicants should mandatorily disclose CIBIL score details in order to comply with SBM Car loan eligibility criteria.

19. Is there a pre-closure penalty for SBM car loans?

A. No pre closure penalty is charged by SBM on its car loans.