When the banking sector is looking ahead to bring a hike in loan rates, the largest lender of the country, SBI has extended teaser loans to car loan segment too. The banking major has extended 8% offer on car loans till June 30, 2010.
The loan scheme of SBI known as SBI Ezee Car Loan Scheme provides car loans at 8% per annum for the first year followed by 10% for second and third years. If seen on EMI basis, the EMI on car loan would be Rs. 1,559 for the first year and Rs. 1,647 in the second and third years per Rs. 1 lakh.
The rate of interest from the fourth year onwards would depend on the card rate which was decided at the time of sanctioning the loan to the customer. It depends on the tenor of the loan.
Currently, the floating rates of car loans offered by other banks range somewhere between 9.5-14% depending upon the tenure of the loan. The fixed rates are in the range of 10.5-15%.
The Ezee loan scheme suits best for borrowers who plan to pay off the loan in 3-5 years. The bank offers loans for 3 years under this scheme.