SBI's Special Offer for those Buying Electric Vehicles

Use of Electric vehicles is being pushed continuously and perhaps increase in the prices of petrol-diesel by the government is to make the country pollution free by discouraging fossil fuel vehicles. If you are also looking to buy an electric car, then the country's largest bank, State Bank of India (SBI), has come up with a special offer for those who are keen to buy electric vehicles.

Apart from this, many states are also offering subsidy. Along with this, the central government is also going to make a provision for exemption on electric vehicles on its behalf very soon. However, the official announcement of when the relaxation will be applicable has not been made yet. But the special offer of SBI is something which you can avail right now. 

Dubbed as SBI Green Car Loan, this SBI offer, unlike a normal car loan, is giving a discount of 0.20% on taking a loan on an electric car . In addition to this , the bank is also giving a discount on the processing fee.

If you want to take a loan at low EMI, then the bank is giving a 8-years of maximum period for this. In this case, you will not have much burden of EMI expenses.

According to the SBI website, government employees whose minimum salary is Rs 3 lakh/year can get a maximum loan of 48 times their net monthly income. Whereas, businessmen, professionals and private job get a loan of 4 times their gross taxable income or net profit after adding the depreciation in the ITR and the payment of all the loans. At the same time, people associated with the agriculture sector, whose annual income is minimum Rs 4 lakh, can get a loan of 3 times the net annual income.

According to the SBI website, the e-car loan is at fixed interest rates. In this, the interest rate for the new electric car is between 7.25 percent to 7.95 percent. If the customer has a credit score of 757 and above, then the interest rate will be 0.25% + 1 year MCLR. SBI's MCLR for one year is 7 percent. Thus, the interest rate on the car loan will be 7.25 per cent per annum. However, this interest rate is applicable only to those customers whose repayment tenure is 3-5 years. The interest rate on the tenure of more than this will be 0.35% + 1 year MCLR (7.35%

Here's A Quick Guide If You Are Planning To Take A Car Loan

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Get closer to your dream of owning a car and make it a reality. A car loan is for those who want to buy a car but don't have that sort of time or resources. Many financial institutions and banks provide loans along with interest charges to someone who wants to own a car but doesn't have the money to. But it isn't that simple; you need to meet certain eligibility parameters to be qualified for a car loan. Besides, buying a car is not a child's pay. Thus, getting a car loan requires some amount of knowledge and research.

So, if you are getting a car loan for the first time, here is a quick guide that will make the entire process easier for you:

Basics of A Car Loan

Buying a car requires a lot of financial planning as it is expensive and not a common everyday purchase. It is understandable to need external financial support from banks and other lending institutions. These institutions can provide you with a hefty amount known as a car loan to help you afford a car.Taking a car loan means that you are borrowing money to get a car for yourself,andyou will return the entire amount with interest within a specified period. You can compare the car loan interest rates amongst various organizations and financial institutions that offer such loans to get the one that suits you the best.

Before you apply for a car loan, you need to ask yourself these two vital questions:

• Are you getting a new car or a pre-owned car?
• Which model do you want?

Depending on the chosen car price and model, the bank or the financial institution approves the loan amount. Further, get the car insured for safety purposes, and then calculate the car loan interest rates to confirm your EMI.

Eligibility Criteria For A Car Loan

You can get a car loan approved if you fulfil the following parameters:

• The borrower must fall under the age bracket of 18 to 75 years
• The net monthly salary of the borrower should be at least INR 10,000
• If you are self-employed, you must have work experience of 2-3 years to get a car loan
• The borrower should be a residing citizen of India to apply for a car loan from Indian banks and financial institutions
• You must at least have a year of residential stability to apply for a car loan
• A decent credit score and reliable credit history

Documents Required To Get A Car Loan

If you qualify the eligibility criteria to get a car loan, the next step is to ensure and arrange proper paperwork to commence the process. The needed documents may vary from bank to bank, but you can arrange these documents that are commonly asked for by every institution:

• A Government Authorized Identity Proof – Your PAN card, driving license, AADHAR card, passport, or any other such document issued by the government can be considered as identity proof when applying for a car loan.
• Proof of Age – The borrower should be 18 years or above to apply for a car loan; thus, a document to prove the age is essential. You can either submit your passport, driving license, ration card, school leaving certificate or any other government-issued certificate that states your age.
• Address Proof– A valid address proof, such as a PAN card, AADHAR card, is required to prove that you are residing citizen of the country.
• Proof of Income– Apart from these documents, if you are a salaried individual, you need to provide the salary slips of at least six months along with your bank statement for the past three months. For self-employed individuals, the requirement might vary. Thus, make sure you check thoroughly before applying for a car loan.
• Others – A signature verification and your recent photograph are also needed with all the documents mentioned above.

Few Final Things To Consider Before Applying for a Car Loan

Before you apply for a car loan, make sure you can afford to repay the amount in the given time. A loan, if not repaid on time, can cause a major financial crisis in the future. So, plan the budget and then make the final decision. You don't rush it, first sit back and consider your EMIs and other financial obligations before borrowing the money. Then, choose a bank or institution you want to go for. It would be best to go for reliable banks such as Axis Bank that offer several car loan interest rates for distinct financial profiles.

Chola Partners with Maruti Suzuki For Vehicle Finance

• Buy Now Pay Later’ to make car financing easier for customers


• Allows flexibility to customers to pay EMIs after two months of availing the loan

With the aim to finance a new car purchase easy and affordable, Cholamandalam Investment & Finance Company Limited (CIFCL) today announced a partnership with Maruti Suzuki India Limited. The objective of this partnership is to provide customised auto retail financing solutions to retail buyers. The ‘Buy Now Pay Later’ offer is aimed to provide customers with easy financing options.

A two-month deferment of EMI will bring advantage to car customers who currently are under resource crunch amidst the COVID-19 pandemic.

Encouraging people to go for financing of a new vehicle, the ‘Buy Now Pay Later’ offer will allow customers to start paying the EMIs after 60 days of loan disbursement. This will make the process of car buying more convenient in these unprecedented times. With Maruti Suzuki’s vast network of 3,086 new car retail outlets across 1,964 cities and towns and CIFCL’s extensive branch presence across the country, the offer is expected to benefit many customers. The offer is available on select Maruti Suzuki models and will be applicable on loan disbursement till June 30, 2020.

Commenting on the partnership, Mr. Ravindra Kundu, Executive Director, Cholamandalam Investment & Finance Company Limited said, “With the lockdown ending soon but the COVID-19 scare still far from being gone, social distancing is bound to be the new normal for at least some time to come. In such a scenario, owning a vehicle is certainly one of the most practical options to move ahead.

Given this backdrop, we are very excited to partner with Maruti Suzuki India Limited, a trusted and renowned brand in India. This partnership will give us a strong foot hold in the car financing space, with our 1094 branches spread across semi urban and rural markets. The synergies between the organizations are aimed towards singular focus to bring benefits to the customers. This ‘Buy Now, Pay Later’ offer will help customers in realizing their car dreams without postponing their purchase any further. This partnership is also in line with our continuous endeavour in enabling our customers to ‘Enter a Better Life’."

Speaking on the customer-centric initiative, Mr. Shashank Srivastava, Executive Director (Marketing & Sales), Maruti Suzuki said, “Customers have always been at the heart of Maruti Suzuki’s efforts of making personal mobility accessible. The partnership with Cholamandalam Investment & Finance company Limited will boost convenience by offering customized retail financing to the customers. It is aimed to offer comfort to buyers who may have faced liquidity crunch during the Covid-19 lockdown. I am sure that the “Buy-Now-Pay-Later Offer” will encourage customers towards car purchase without putting immediate extra pressure on their pockets."

Cholamandalam Investment and Finance Company Limited (Chola), incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking and a variety of other financial services to customers.

Chola operates from 1094 branches across India with assets under management above INR 59292 Crores. The subsidiaries of Chola are Cholamandalam Securities Limited (CSEC), Cholamandalam Home Finance Limited (CHFL).

The mission of Chola is to enable customers enter a better life. Chola has a growing clientele of over 8 lakh happy customers across the nation. Ever since its inception and all through its growth, the company has kept a clear sight of its values. The basic tenet of these values is a strict adherence to ethics and a responsibility to all those who come within its corporate ambit - customers, shareholders, employees and society. For more details, please visit www.cholamandalam.com