NEWS & ADVICE : CAR LOANS
SBI to offer car loans at 8 percent
By Vaibhav Aggarwal
Jun 30, 2009
Print    Email    RSS   

Under a special scheme, State Bank of India, the largest lender in the country has reduced the interest rate on auto loans to 8 percent, applicable for the first year and at 10 percent for subsequent two years. For the remaining tenure, the interest would be charged 25 to 75 basis points below the BPLR.

The new scheme will be effective July 1 onwards and will valid till September 2009. July 1 marks the foundation day of the bank.

The offer will come as an immediate benefit for the Nano applicants.

Under this offer, EMI on an auto loan of Rs 1 lakh will be Rs 1,559 for the first year, Rs 1,647 in the consecutive two years. In the fourth year, the rate of interest applicable will be 50 basis points lower than the bank's PLR prevailing at that time.

Presently, the bank is offering auto loans at 25-75 bps below its BPLR, which is 11.75 percent.

With this reduction, it is expected that other banks like ICICI and HDFC will follow the suit. Sumit Bali, CEO, Kotak Prime, said, "We have reduced our loan rates by 30-40 basis points to around 11.25%. If there is a policy action which results in lowering of our interest costs, we will pass it on to the customers."

Earlier, in February this year, SBI introduced a similar scheme where the interest rate applicable was fixed at 10 percent for the first year. Under this scheme, the bank disbursed loans worth Rs. 1,200 crores. The bank had also waived the processing fee on car loans, besides providing free accident insurance cover of up to Rs 40 lakh on loan outstandings.


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Tata Nano: How would Bank Loans look
New Vs. Used Car loan in India: Benefits...
Carnival of Indian Personal Finance Blogs #3
Loans against Cars: A Quick Solution for...
How good are floating rate car loans?


CAR LOAN STETMENT
Hello I am looking to renew my car insurance and I...
my loan no

NEWS THIS WEEK
SBH bank extended its Car and gold loan campaign till 31st March, 2015. Feb 11, 2015
KVGB bank signed MOU with TATA Motors Feb 10, 2015
SBH bank extended its scheme offering concession to loan defaulters Feb 2, 2015
Karnataka Bank tied up with TVS motors to Assist Auto rickshaw buyers Jan 27, 2015
RBI extended the Directions issued to Amanath Co-operative Bank for a period of six months Jan 22, 2015
News Archive