Hello Radhika
Salient Features of SBI Car Loan :-
SBI Car Loan Plus Points
- SBI Works on Floating Interest Rate (Base Rate + Margin) as against Fixed Interest Rate Regime of Private Banks (though both are reducing EMI Schemes). Thus, while the Interest rates are locked up without any fluctuation with Private Banks, but in SBI Car Loans - the Changed Base Rate (aka PLR would impact in loan tenure)
- Flexibility in Pre-payment with NIL Pre-Payment Charges Clause after 6 months of loan disbursement as against Private Banks which charges pre-payment penalty in event of pre-closure (based on loan tenure) with as high as 5.6% of loan amount
- Low or even Waived off Processing Fees in SBI as on time to time
- SBI Car Loan does not have differential rate of Interest on car models as against ICICI Bank, HDFC or Axis Car Loan which has differential pricing basis car models. For Instance - Alto to Mercedes Benz - all are financed at the same Interest Rate with SBI, while Private Banks offers differential Interest rate based on model
Some Concerns on SBI Car Loan
- If you are Salaried, but has transferable Job or plan to shift to some other city - may have to reconsider the fact that SBI do not offer in Inter State Transfer NOC. For Instance - if you working in Delhi and take a car loan from SBI, now after 2 years - your company transfer you to say Bangalore - SBI does not issue in Inter State Transfer NOC and thus you would not be able to reregister vehicle in Bangalore
While in Private Banks - they selectively offer Inter State NOC for re-registration provided - the new location is within Geo Limits of Bank and also has clean repayment record. Though - this is again subjective and at discretion of Bank
- Though above features seems to be working highly in favor of SBI to go in for. Biggest hurdle as per customer feedbacks - been documentation and loan processing - which private banks gets seems have better turn around time. Hope so - in near future - if this bottleneck of TAT (turn around time) is taken care of - we may see SBI emerging as much larger Bank in Retail Car loans as against all private banks put together even in Metro Cities too
Below Links/Discussion will also be of Interest
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Car Loan Eligibility
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SBI Car Loan
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Car Loan Interest Rates