State Bank of India (SBI) offers a convenient auto loan scheme that extends to second-hand cars, commonly known as pre-owned or used cars.
If you have a limited budget, opting for a certified pre-owned car could be a viable choice.
SBI provides financing for certified pre-owned cars with favorable terms.
This scheme allows individuals to borrow a minimum of Rs 3 lakh and a maximum of Rs 1 crore from the bank.
Eligibility and Loan Limits
According to the information available on the SBI website, not only salaried individuals but also self-employed professionals and those engaged in agriculture and allied activities can avail of loans for second-hand cars.
Salaried individuals, self-employed professionals, and others should have an annual income of at least Rs 3 lakh,
while those involved in agriculture and allied activities should have an annual income of Rs 4 lakh or more.
Applicants must be between the ages of 21 and 67 years to qualify for this loan.
Under SBI’s Certified Pre-Owned Car Loan Scheme, borrowers can avail themselves of a minimum loan amount of Rs 3 lakh and a maximum of Rs 1 crore.
The loan repayment period is limited to a maximum of 5 years. In this scheme,
individuals can obtain a loan of up to 85 percent of the ex-showroom price of the car.
Interest Rates and Processing Fees
As per the details provided on the SBI website, the interest rates for certified pre-owned car loans range from 11.25 percent to 14.75 percent.
Additionally, there is a processing fee of 1.25 percent of the loan amount plus GST.
The maximum processing fee is Rs 10,000 plus GST, while the minimum is Rs 3,750 plus GST.
To apply for the SBI Certified Pre-Owned Car Loan Scheme, applicants must provide the following documents: invoice proforma, seller’s RC copy, and seller’s motor insurance copy.
During loan disbursement, applicants need to submit the sale agreement between the dealer and the seller,
a dealer undertaking, bank clearance, and details of the conversation with the insurance company regarding the change in the insured’s name and financier.
For more detailed information, individuals can contact the bank directly.
Preferred Companies and Penalty Charges
Companies such as Maruti True Value, Hyundai H-Promise, Honda Auto Terrace, Tata Assured, and Mahindra First Choice are acceptable for income invoice pricing.
Additionally, during the default period, individuals are required to pay a monthly penalty of 2 percent on the outstanding amount, in addition to the existing interest rate.
For further information, individuals can reach out to SBI’s customer service helpline at 1800-11-2211