SBI Car Loan Interest Rates 2026
State Bank of India (SBI) offers competitive car loan rates for both new and used vehicles. As one of India's largest PSU banks, SBI provides reliable financing with straightforward terms.
| Car Type | Interest Rate | Max Tenure |
|---|---|---|
| New Car | 8.75% - 9.85% | 7 years |
| Used Car | 11.25% - 12.85% | 5 years |
Rates depend on credit score, loan amount, and existing relationship with SBI.
SBI Car Loan Eligibility
- Age: 21-65 years (loan should end before 70)
- Income: Minimum Rs. 25,000/month (salaried) or Rs. 3 lakh/year (self-employed)
- Employment: Minimum 1 year in current job (salaried) or 3 years in business
- CIBIL Score: 700+ recommended for best rates
- Loan-to-Value: Up to 90% of on-road price (new), 85% (used)
Documents Required for SBI Car Loan
- Identity Proof: Aadhaar Card, PAN Card
- Address Proof: Aadhaar, utility bill, or passport
- Income Proof: Latest 3 months salary slips
- Bank Statements: Last 6 months
- Employment Proof: ID card or appointment letter
- Car Quotation from dealer
- 2 passport-size photographs
- Business proof: GST registration, shop license
- ITR for last 2 years
- Audited financials (if applicable)
- Bank statements: Last 12 months
SBI Car Loan Charges
- Processing Fee: 0.5% of loan amount (min Rs. 1,000, max Rs. 10,000)
- Prepayment Charges: Nil for floating rate, 2-3% for fixed rate
- Documentation Charges: Rs. 500-1,000
- Late Payment: 2% per month on overdue EMI
Why Choose SBI Car Loan?
- Competitive interest rates among PSU banks
- Low processing fee (0.5% vs 1-2% at private banks)
- Up to 7 years tenure for new cars
- No prepayment penalty on floating-rate loans (RBI 2026)
- Doorstep service and quick approval
- Special rates for existing SBI customers
SBI vs Other Banks: Car Loan Comparison
| Bank | Interest Rate | Processing Fee |
|---|---|---|
| SBI | 8.75% - 9.85% | 0.5% |
| HDFC Bank | 8.20% - 9.40% | 0.5% |
| ICICI Bank | 8.50% - 9.75% | 0.5-1% |
| Axis Bank | 8.60% - 9.80% | 1% |
Frequently Asked Questions
How long does SBI car loan approval take?
SBI typically approves car loans within 2-5 working days after document submission. Existing SBI customers may get faster approval through YONO app.
Can I apply for SBI car loan online?
Yes, you can apply through SBI YONO app or the official SBI website. Online applications often get faster processing and sometimes special rate offers.
Does SBI offer car loan for used cars?
Yes, SBI finances used cars up to 5 years old at the time of loan disbursement. Interest rates for used cars are higher (11-13%) with maximum 5-year tenure.
What happens if I miss an SBI car loan EMI?
SBI charges 2% per month on the overdue EMI amount. Consistent missed payments can affect your CIBIL score and may lead to loan recall or vehicle repossession.