SBI to launch new car loan scheme
By chennaivision at 27 June, 2009, 3:43 pm
Mumbai, The State Bank of India (SBI) will launch a new car loan scheme offering eight per cent interest for the first year and nine per cent for the second and third year on its foundation day on July one.
The Bank, announcing its EZEE Car Loan Scheme in a release here, said that interest would be reset from the fourth year onwards at the card rate contracted on the date of sanction of loan and depending upon the tenure.
SBI Car loan card rates were 25 to 75 basis points below the Bank’s prime lending rate.
Equated Monthly Installments (EMI) for a SBI car loan for Rs one lakh will be as low as Rs 1,559 in the first year and Rs 1,647 in the second and third year during the scheme period, to make it simple for the car buyers.
The Bank had waived the processing fee during the period of the scheme.
The scheme was an improvement of the earlier one introduced in February this year, providing a ten per cent fixed interest rate for the first year, and would be offered till September 30.
During the last one year SBI has marched ahead in the car financing space and is now the largest financier of new cars. The Bank has taken proactive steps to improve the number of cars sold with finance amounts and some of the car manufacturers started showing good growth from March 09 onwards banking on the strength of the popular interest rate offer from SBI, the release said.
Interest would calculated on the daily outstanding balance, reducing the interest burden on the borrower as against the monthly outstanding balance or flat rate basis as charged by few others.
SBI has entered into strategic tie-ups with Maruti Suzuki India Ltd, Tata Motors Ltd for financing arrangements with all major car manufacturers, including Hyundai Motors India Ltd, the release added.
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