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Lowest SBI Car Loan Interest Rates | Instant EMI Calculator, Apply Now!

Team AckoApr 19, 2024

Owning a car is no longer a luxury; it has become a necessity in today's fast-paced world.

However, buying a car can be a significant financial commitment for many individuals.

To make the dream of owning a car more accessible, SBI (State Bank of India), the country's largest bank, offers car loans at competitive interest rates.

In this article, we will explore the SBI car loan interest rates, EMI, eligibility, and the process to help you make an informed decision when financing your car.




SBI Car Loan Interest Rates in 2023 

The following tables provide more details about the SBI car loan interest rates as of July 2023.

SBI Car Loan Scheme

Interest Rate

SBI Car Loan/Assured Car Loan/NRI Car Loan

8.85% to 9.65%

SBI Green Car Loan (Electric Cars)

8.60% to 9.30%

Pre-owned Car Loan

11.25% to 14.75%

Loyalty Car Loan

8.80% to 9.60%

SBI Car Loan Interest Rates Based on CIC Scores

CIC Score

SBI Car Loan Interest Rate

775 (And above)

8.85% to 8.95%

757 to 774

8.95% to 9.05%

721 to 756

9.20% to 9.30%

700 to 720

9.45% to 9.55%

650 to 699

9.55% to 9.65%

-1 (101 to 200)

8.95% to 9.30%

Features of SBI Car Loan Schemes

Here are the key features of the SBI car loan schemes.

  • Benefit from competitive rates on EMI and interest for car loans. 

  • Repayment period (tenure) of up to 7 years. 

  • Receive financing based on the On-Road price of the vehicle. 

  • Interest is calculated using the Daily Reducing Balance method. 

  • No upfront EMI payment is required. 

  • Additionally, SBI offers an optional Life Insurance Cover.

  • You can avail of car loans to buy used cars.

How to Calculate SBI Bank Car Loan EMI

If you wish to know the exact amount you will be paying each month towards the loan, you can do so by using a formula.

By knowing the EMI (Equated Monthly Instalments) upfront, you can plan your monthly expenses accordingly.

You can follow these steps to calculate the SBI car loan EMI.

Step 1. Obtain the necessary information: Gather the loan amount, interest rate, and loan tenure (in months).

Step 2. Convert the interest rate: If the interest rate is provided on an annual basis, divide it by 12 to get the monthly interest rate. For example, if the annual interest rate is 8%, the monthly interest rate would be 8%/12 = 0.67%.

Step 3. Calculate the monthly interest rate: Express the monthly interest rate as a decimal. For example, if the monthly interest rate is 0.67%, convert it to 0.0067.

Step 4. Determine the loan tenure: Convert the loan tenure from years to months. For example, if the loan tenure is 5 years, it would be 5 * 12 = 60 months.

Step 5. Use the formula: Employ the following formula for EMI calculation.

EMI = P * r * (1 + r)^n / ((1 + r)^n - 1)

  • EMI is the Equated Monthly Instalment

  • P is the loan amount

  • r is the monthly interest rate

  • n is the loan tenure in months

Step 6. Calculate the EMI: Plug the values into the formula and calculate the EMI.

Once you have performed these calculations, you will obtain the EMI amount for your SBI car loan.

Alternatively, you can use ACKO's car loan emi calculator to calculate the emi instantly.

Eligibility Criteria: SBI Car Loan Eligibility

To get an SBI car loan to buy a new or second-hand car, the applicant must fulfil the following eligibility criteria.

  • The applicant must be of at least 21 years of age. The maximum age limit for SBI car loan stands at 70 years.

  • Regular employees of Central Public Sector Enterprises must have a minimum income or co-applicant income of Rs. 3 lakhs.

  • Individuals receiving defence salaries.

  • Salary package for Para Military personnel.

  • Customers and Short Commissioned Officers from different Defence establishments.

  • Self-employed individuals, professionals, and others with an income exceeding Rs. 3 lakhs.

  • Agriculturists with an income surpassing Rs. 4 lakhs.

Application Process: How to Apply for SBI Car Loan

There are two methods to apply for an SBI car loan. The following sections explain the same.

Online Process

  • You can visit the official website of the State Bank of India and select the “Loans” option. 

  • Once you do that, you can choose “Auto Loans” and click the “Apply Now” button against the loan you wish to apply.

  • On the next page, you can fill in the required details and submit the loan application.

Offline Process

You can visit your nearest SBI branch and enquire about the car loan application process. The bank official will guide you through the application and documentation process.

Documents Required to Apply for a Car Loan from the State Bank of India

Here is the list of documents you need to apply for an SBI car loan.

  • Bank account statement for the past six months.

  • Two passport-sized photographs.

  • A photocopy of either your passport, Driving Licence, voter ID card, or PAN card is mandatory.

  • Address proof (Utility bills, voter ID card, passport, DL, etc.)

  • Salary slip with all deductions.

  • For salaried employees, provide Form 16 (income tax return) for the previous two years. If you are self-employed, a professional, or a business owner, submit Form 16 for the previous three years. The form must be accepted by the Income Tax Officer (ITO).

  • If you do not receive a salary, ensure to confirm your official address as well.

Factors Affecting SBI Bank Car Loan Interest Rates

Several factors can influence the SBI car loan interest rates. These factors include the following.

  • Creditworthiness: Your credit history and credit score play a significant role in determining the interest rate. A higher credit score and a good repayment history can increase your chances of securing a lower interest rate.

  • Loan amount and tenure: The loan amount and the repayment tenure can impact the interest rate. If the loan amount is larger or has a longer tenure, it may attract higher interest rates.

  • Type of car: The type, model, and age of the car can influence the interest rate. SBI may have specific interest rates based on the car's value, whether it is new or used, and other related factors.

  • Income and employment stability: Your income level and stability of employment can affect the interest rate. A higher income and stable employment history may qualify you for lower interest rates.

  • Relationship with SBI: Existing customers of SBI may enjoy certain benefits, including preferential interest rates, based on their banking relationship.

  • Market conditions: Interest rates can be influenced by market conditions, such as changes in the Reserve Bank of India's (RBI) lending rates, inflation rates, and overall economic factors.

  • Negotiation: In some cases, borrowers may have the opportunity to negotiate the interest rate based on their financial profile and negotiation skills.

Check Out Car Loan Interest Rates from Other Banks in India (2023)

The following table lists the car loan interest rates (as of July 2023) of various banks in India.

Bank Name

Car Loan Interest Rate (Per Annum)

State Bank of India

8.60% onwards

Bank of Baroda

8.70% onwards

Union Bank of India

8.80% onwards


8.85% onwards (Rack Interest)

Federal Bank

11% onwards

Axis Bank

8.75% onwards

Canara Bank

8.80% onwards

Punjab National Bank

8.75% onwards


8.85% onwards

Kotak Mahindra Bank

7.70% onwards

Bank of India

8.85% onwards

IndusInd Bank

7% onwards

Yes Bank

9.7% onwards

UCO Bank

8.70 onwards

Frequently Asked Questions about SBI Car Loans

Here are a few commonly asked questions and their answers about SBI car loans.


What is the car loan interest rate in SBI?

The interest rate for an SBI car loan starts at 8.60% per annum. The interest rate depends on various factors such as credit score, loan amount, tenure, type of vehicle, etc.

Is the SBI car loan good or bad?

Determining whether an SBI car loan is good or bad depends on individual circumstances and preferences. However, SBI, being one of the largest and most reputable banks in India, offers several advantages, such as competitive interest rates, flexible tenure, etc., that can make their car loans appealing.

What is the EMI for Rs. 10 lakhs car loan?

You can calculate the EMI for a car loan of Rs. 10 lakhs by determining the interest rate, tenure. Once you know these factors, you can use the formula EMI = P * r * (1 + r)^n / ((1 + r)^n - 1) to calculate the exact EMI you have to pay.

Is the SBI car loan interest rate fixed or floating?

SBI offers fixed interest rates on car loans.

Disclaimer: The above content is for informational purposes only. It is recommended to take the help of an expert before making a decision.


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