SBI Introduces Easy Loan Scheme for Second-Hand Cars

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.

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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.

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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,

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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.

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Loan Features

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.

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Required Documents

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.

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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


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