Planning to finance your next vehicle with the State Bank of India? As India’s largest and most trusted public sector bank, SBI offers transparent and competitive terms. Understanding your Equated Monthly Installment (EMI) is the first step towards smart vehicle ownership. SBI’s used car loan interest rates, linked to your CIBIL score, are projected to start from as low as 9.80% p.a. in late 2025.
This page provides a comprehensive guide and a powerful SBI used car loan EMI calculator to help you plan your purchase with precision.
SBI Pre-Owned Car Loan: Key Facts (October 2025)
| Attribute | Value | Notes | Source | Last Checked |
| Interest Rate Range | 9.80% – 11.40% p.a. | Floating Rate. Depends on CIBIL score. Lower scores attract higher rates. | SBI Official Site | October 12, 2025 |
| Max Loan Tenure | 5 Years (60 Months) | Shorter tenures are available. Capping at 5 years ensures vehicle value. | SBI Car Loan Scheme | October 12, 2025 |
| Processing Fee | Nil (Limited Period Offer) | Standard fee is 0.50% of the loan amount + GST. Check for active offers. | SBI Processing Fees | October 12, 2025 |
| Max LTV | Up to 85% of ‘On-Road Price’ | ‘On-Road Price’ includes Registration, Insurance, and Extended Warranty. | SBI Car Loan Scheme | October 12, 2025 |
| Prepayment Policy | Nil Charges | No penalty for part-prepayment or full foreclosure of the loan. | SBI Car Loan FAQ | October 12, 2025 |
| Vehicle Age Limit | Not older than 5 years. | Subject to the applicant’s repayment capacity and vehicle valuation. | Paisabazaar SBI Page | October 12, 2025 |
| Loan Amount Range | ₹3,00,000 to ₹1,00,00,000 | Subject to applicant’s repayment capacity and vehicle valuation. | SBI Car Loan Scheme | October 12, 2025 |
| Eligibility Basics | Age: 21-70 yrs. CIBIL: 700+ recommended. Stable income source required. | Applicable for Salaried, Self-Employed, and Agriculturalists. | SBI Car Loan Eligibility | October 12, 2025 |
Check Your Eligibility with SBI Bank
Quick pre‑check. No hard credit pull. Policy terms apply.
How Does SBI’s Used Car Loan Work?
The State Bank of India provides a straightforward and borrower-friendly loan process. Understanding the key factors helps you secure the best possible terms for your vehicle financing.
Interest Rates
SBI’s used car loans feature a floating interest rate. This rate is linked to the bank’s external benchmark (EBLR) and is influenced by your CIBIL score. The current range is 9.80% to 11.40% p.a. A higher credit score (750+) can secure a rate at the lower end of this bracket. Since the rate is floating, it may change over the loan’s life based on RBI’s policy revisions.
Eligibility Criteria
To qualify, applicants must be between 21 and 70 years of age. SBI extends its car loan scheme to salaried employees, self-employed professionals, and even agriculturalists with a stable income. The bank assesses your Net Annual Income to determine your repayment capacity. A healthy credit history is essential for a smooth approval process.
Loan Amount & Tenure
You can avail a loan from ₹3 Lakhs up to a maximum of ₹1 Crore. SBI will finance up to 85% of the vehicle’s on-road price, which includes registration and insurance costs. The repayment tenure for a used car is capped at a maximum of 5 years (60 months). Use the tenure slider on the calculator above to see the immediate impact on your monthly EMI.
Processing Fees & Other Charges
One of SBI’s major advantages is its fee structure. The bank often runs offers with zero processing fees. Even the standard fee is a nominal 0.50% of the loan amount. Critically, there are no penalties for prepayment or foreclosure. This gives you the flexibility to pay off your loan early and save on interest without any extra cost. Late payment and swap charges apply per the schedule mentioned at SBI – Certified Pre‑Owned Car Loan.
Application-to-Disbursal Flow
The process starts with an application via the YONO app, the SBI website, or by visiting a branch. You will submit KYC documents, income proof, and the car’s documents (RC, insurance). SBI then performs due diligence and valuates the vehicle. Upon approval and signing the loan agreement, the amount is disbursed, typically within 3-5 working days.
Note: For independent modeling, see the pre-owned car loan EMI calculator.
FAQ
The information you need to use this EMI calculator is the loan amount, the annual interest rate, and the loan tenure in months or years. Optionally, add a monthly prepayment amount to estimate interest saved and payoff acceleration accurately.
Changing the loan tenure (length) affects your EMI and total interest by making shorter terms raise the EMI but reduce lifetime interest, while longer terms lower EMI but increase aggregate interest. Use the tenure slider to observe the immediate modeled impact precisely.
SBI’s used car loan interest rate range is not published here. For planning, model scenarios between 10%–16% APR in the calculator, then confirm the sanctioned rate in the loan offer letter and sanction terms issued by SBI at approval.
SBI’s part-prepayment/foreclosure policy for used car loans is contract‑specific. From 1 Jan 2026, floating‑rate individual loans should have no prepayment charges; confirm fixed versus floating in the sanction letter, then model savings using the prepayment input field confidently.
The LTV you can expect typically ranges near 80%–85% of the vehicle’s valuation in market practice. Final LTV depends on valuation, profile, and scheme. Always rely on SBI’s communicated eligibility and sanction terms for definitive loan‑to‑value approval decisions.
The vehicle age limits that typically apply for SBI car loan is structured so the loan ends before the car reaches 10 years. This is a market convention; the scheme may differ. Confirm permissible model years during valuation and disbursal checks with SBI underwriting teams.
The documents you need generally include KYC (identity/address), income proof, recent bank statements, vehicle RC, insurance, and seller/valuation papers. SBI may request additional evidence based on profile. Obtain the latest checklist from SBI before submission proactively.
The typical disbursal turnaround time is often 24–72 hours post‑sanction and document completion in market practice. Actual timelines vary by branch, valuation, and compliance steps. Track your file status with SBI and keep documents ready to avoid delays efficiently.
Changing the EMI due date after disbursal is a policy-driven service subject to SBI’s operational rules. Submit a formal request with updated mandate details if permitted. Charges or limits may apply; confirm with your servicing branch before making adjustments carefully.
Processing fees are typically non‑refundable as they cover evaluation and administrative work. Refund eligibility, if any, depends on SBI’s policy and stage of processing. Review the fee disclosure in the sanction letter and application form before submitting carefully please.
To compare tenures and APRs, move the tenure and rate sliders to model EMI and total interest. Shorten tenure if affordable. Keep buffer for expenses. Download the amortization PDF to evaluate repayment trajectory against monthly cash flows clearly.
To independently validate, cross‑check results on a trusted used car loan EMI calculator and compare ranges. Use identical loan amount, tenure, and APR to reconcile numbers, then rely on the SBI offer letter for the final sanctioned terms and disclosures.