With SBI auto loans, you can avail the best deal for financing your vehicle. Enjoy a hassle-free ride with the lowest interest rate, minimum paperwork, and fast disbursement of loans. High-Value SBI auto loans are available at competitive rates.
Features of SBI Auto Loans
Types of SBI Auto loans
An auto loan is a secured loan offered against your vehicle as collateral. An individual can avail of an auto loan for buying a car or any other vehicle. The vehicle acts as the guarantee, therefore you don’t have to provide any other asset to a mortgage. You get an upfront payment, and you can conveniently repay the loan amount through equated monthly installments.
Eligibility for auto loans
Most lenders offer auto loans to all individuals aged between 21 to 60 years, like salaried employees, self-employed professionals, businessman pensioners, farmers, traders, etc. Apart from that, you should have a good credit score. Anything above 750 is considered a good credit score for an auto loan. Your credit score indicates your creditworthiness. An applicant should have a steady annual income of at least Rs. 2 lac.
Auto loan interest rate
In India, auto loans are offered at a fixed and floating rate of interest.
Fixed-rate of interest remains constant throughout the loan tenure.
The floating rate of interest varies from time to time depending on the changes in government rules and policy, supply of money, etc.
Currently, the auto loan rate is varying between 7% to 10%. The interest rate also depends on several factors like
If your credit score is high, you will be able to borrow at a lower rate of interest because your creditworthiness makes your application less risky for the lender.
Most of the lenders offer a discount in interest rate if you take the loan for short time.
If the borrower has a high and steady income, the lender is likely to provide a low-interest rate. It indicates that you won’t have any difficulty in repaying the loan.
Some of the lenders provide benefits in case of a high loan amount.
Relationship with the lender
If you have a good pre-existing relationship with your lender, you can negotiate for a lower interest rate.
Best auto loan providing companies
Auto loans prepayment
Prepayment of an auto loan refers to partial or full payment of an auto loan before the completion of the tenure. It is important to read your documents carefully because some banks don’t permit the prepayment of auto loans for at least one year after the loan is disbursed.
The borrower has to pay a prepayment penalty to the lending company. The prepayment charges vary from bank to bank, so it is advised to check the prepayment charges at the time of borrowing.
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