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Features of SBI Pre-owned Car Loan For You

Get To Know About SBI  Used Car Loan

Use Fixed Deposits to Get a Car Loan in HyderabadThe scenario of buying used cars is on the rise during the recent times. People tend to go for used cars when they cannot afford the new car in that particular make and brand. However, the trend of used car finance is yet to gain popularity. People tend to keep away from these loans under the misconception of a high rate of interest and stringent eligibility requirements. Most of the used car buyer segment include salaried or a people who wanted to upgrade from the two-wheeler to car.  If you are one planning to go for a used car loan, it is a good idea to peep into the wonderful features of SBI used car loan before you move ahead.

Get To Know About SBI  Used Car Loan

Check your eligibility

To stand eligible to get SBI used car loan, you should fall in the age slab of 21-65 years holding permanent employment either in the private and government sector. You will also be eligible if you are self-employed taxpayer or agriculturist. Your income should be 15000 per month in the case of salaried and 30,000 per month in the case of self-employed. If you meet these eligibility requirements of Certified Pre-owned Car Loan, keep reading to know wonderful features of loan offered by SBI.

Long tenure and low interest

Long tenure and low rate of interest are the two factors the make the borrower leap over the new loan when compared to a used car loan. SBI is now offering these two features in the pre-owned car loans too. In these loans, you will enjoy a long tenure of 5 years and the interest rate is 4.65% above the 1 year Marginal Cost of funds Lending Rate (MCLR). The interest is calculated on daily reducing balance where you will benefit with the lower principal amount.

EMI

Most of the bankers today ask the borrower to pay advanced EMI on the car loan; SBI exempts the borrower from paying advance EMI down used car loan. You will enjoy flexibility in the repayment of the SBI car loan; for starters, the EMI is quite low when compared to industry players. You can pay the EMI anytime during the month at your convenience.

Loan to value ratio

The loan to value ratio is a comparison between car value and loan value. This ratio is as high as 80% in used car loan of SBI. The loan value sanctioned by the bank covers registration fee, insurance, and accessories up to 25,000.

  Fee and penalty

The processing fee is just not more than 1% of the total loan amount and even the prepayment penalty of loan is as low as 2% in used car loans of SBI.

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