Loans

SBI Car Loan Interest Rate: How to Get the Best Deal

Om Prakash – https://PaisaGyaan.com 0
Young man calculating car loan EMI using SBI car loan interest rate calculator

SBI Car Loan Interest Rate: How to Get the Best Deal

Introduction

If you’re planning to buy a new car in India, chances are you’ve considered financing options — and one of the most trusted names is State Bank of India (SBI). Known for its wide network, competitive rates, and customer-centric services, SBI car loans are a popular choice among salaried professionals, self-employed individuals, and government employees alike. In this guide, we’ll explore everything you need to know about SBI car loan interest rate, including:

  • Current rates
  • EMI calculation for ₹10 lakh cars
  • Special offers for government employees
  • Tips to get the best deal

Let’s dive in.

What Is the SBI Car Loan Interest Rate Today?

As of early 2025, SBI car loan interest rates start from 7.75% per annum, depending on the type of vehicle and borrower profile.

Here’s a quick snapshot:

Type of BorrowerInterest Rate
Salaried Individuals7.75% – 9.50%
Self-Employed8.00% – 10.00%
Government Employees7.50% – 8.50%

These rates are subject to change, so it’s always wise to check directly on SBI’s official website or contact your nearest branch for the latest updates.

Also, keep in mind that these are floating rates — they may vary based on repo rate changes and other market conditions.

Understanding the EMI for a ₹10 Lakh Car Loan

One of the most common questions people ask is:

“What will be the EMI for a ₹10 lakh car loan?”

Let’s break it down.

For an SBI car loan of ₹10 lakh at 8% interest over 5 years (60 months), your monthly EMI would be approximately ₹20,276.

Here’s How It Works:

EMI depends on:

  • Principal amount
  • Interest rate
  • Loan tenure

You can calculate your own EMI using:

The key takeaway?

Even small differences in interest rates can significantly impact your monthly outflow — so compare wisely.

Is SBI a Good Option for Car Loans?

Many first-time buyers wonder:

“Is SBI good for car loan?”

The answer is yes — but with a few important considerations.

Why SBI Stands Out:

  • Competitive interest rates
  • Easy online application process
  • Wide network of branches
  • Transparent documentation
  • Fast approval and disbursal

However, SBI also has:

  • Strict credit score requirements (generally above 700)
  • Longer processing time compared to some private banks

It’s ideal for people who value stability and trust — especially government employees and salaried individuals.

If you’re looking for flexibility in repayment terms or want to apply entirely online without visiting a branch, consider alternatives like HDFC, ICICI, or Axis Bank — but don’t skip SBI just yet.

Using the SBI Car Loan Interest Rate EMI Calculator

Before applying for any loan, it’s smart to understand how much you’ll pay each month.

That’s where the SBI car loan EMI calculator comes in handy.

You can find it on:
👉 https://sbi.co.in/web/personal-banking/loans/auto-loans/sbi-new-car-loan-scheme

Steps to Use:

  1. Enter loan amount
  2. Select interest rate (or use the default)
  3. Choose tenure (e.g., 5–7 years)
  4. Click calculate

This gives you an estimate of your monthly payment and total interest payable over time.

Using the calculator helps you plan better — and avoid surprises later.

How to Check SBI Car Loan Interest Rate with a Calculator

Besides the EMI calculator, SBI offers a dedicated interest rate calculator — or you can use third-party platforms like:

  • BankBazaar
  • Paisabazaar
  • MyLoanCare

These tools help you:

  • Compare loan offers
  • Understand how interest works
  • See how different tenures affect your payments

Just enter basic details like:

  • Loan amount
  • Tenure
  • Interest rate

And the tool does the math for you.

This helps you stay informed and prepared when discussing with bank executives or dealerships.

SBI Car Loan Interest Rate for Government Employees

Government employees enjoy special benefits when applying for car loans — and SBI recognizes this.

They offer preferential interest rates to government staff due to:

  • Stable income
  • Job security
  • Lower risk profile

Benefits for Government Employees:

  • Reduced interest rate (can go as low as 8.50%)
  • Higher loan amounts
  • Relaxed documentation
  • Faster approvals

Make sure to mention your employment status when applying — and carry all necessary documents like salary slips, appointment letters, and identity proof.

What Is the SBI Car Loan Interest Rate for 7 Years?

Loan tenure plays a big role in both your EMI and the total interest paid.

While most car loans range between 1–7 years, many borrowers choose a 7-year term to lower their EMI burden.

But here’s the catch:

A longer tenure means more interest over time.

At SBI, the interest rate for a 7-year car loan typically ranges between 8.25% – 9.50%, depending on your credit profile and income stability.

Example:

A ₹10 lakh loan at 8.5% over 7 years results in an EMI of around ₹15,800/month — but you end up paying ₹13.26 lakh by the end of the loan period.

So while your monthly payment looks smaller, the long-term cost increases.

Comparing Fixed vs Floating Rates

SBI offers both fixed and floating interest rate options for car loans.

Fixed Rate

  • Remains constant throughout the loan period
  • Predictable EMI
  • Ideal if you prefer stability

Floating Rate

  • Fluctuates with market trends
  • May decrease (if RBI cuts rates)
  • Could increase during inflationary periods

Most people opt for floating rates since SBI’s car loan interest rates tend to stay favorable for long-term borrowers.

Still, always read the fine print before signing the agreement.

Eligibility Criteria for SBI Car Loan

To qualify for an SBI car loan, you must meet certain criteria.

Key Requirements:

  • Age: 21–60 years
  • Income: Minimum ₹25000

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About the Author

I’m Om Prakash — founder of Paisagyaan.com, a blog focused on making financial knowledge simple, relatable, and useful for everyday Indians. My journey includes over 10 years of navigating the Indian stock market, learning the hard way about investments, debts and real estate.

Read About the Author in detail, who lost 75 lakh rupees during 2009 to 2019 which would be 4.5 crore now in 2025.

I share lessons from my own life — so you don’t repeat my mistakes. If you’re just starting out or have already faced setbacks, this blog is for you.

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Om Prakash – https://PaisaGyaan.com

Website: https://paisagyaan.com/about-the-author/

I’m Om Prakash — founder of https://PaisaGyaan.com, a blog focused on making financial knowledge simple, relatable, and useful for everyday Indians. My journey includes over 10 years of navigating the Indian stock market, learning the hard way about investments, debts, LIC, crypto and real estate. Read "About the Author" in detail, who lost 75 lakh rupees during 2009 to 2019 which would be 4.5 crore now in 2025. But here’s what those losses taught me: Financial knowledge matters — deeply, so you don’t repeat my mistakes. If you’re just starting out or have already faced setbacks, this blog is for you for educational purpose and not advice.

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