State Bank Of India

State Bank of India (SBI), the country’s largest public sector bank, has tightened eligibility Criteria for its four-wheeler (car loan) loan scheme with a view to minimising possible defaults. The bank will not provide a car loan to persons with annual income of less than Rs 6 lakh. There is no upper limit for the amount of a car loan. A maximum loan amount of 48 times of Net Monthly Income or 4 times of Net Annual Income can be sanctioned.

The bank has increased eligibility limit for loan issuance for salaried individual for car purchase from Rs 2.5 lakh per annum to Rs 6 lakh per annum. The bank provides car loans at an interest rate of 10.45%. The bank is charging a Processing Fee of 0.51% of the loan amount subject to minimum of Rs 1020 and maximum of Rs. 10200.