Few points for which I choose SBI Car loan was as below:
1) The SBI Car Loan Interest Rate was the lowest. It was 10.95% for floating interest rate. While other banks were mostly 11.50% or more.
2) In SBI Car Loan customer can close the entire loan after 6 months without paying a single pre-payment penalty. This is the main point for which I liked the SBI Car Loan and opted for that. While other Banks were charging 2% penalty of remaining amount.
Documents Required for SBI Car Loan
The Honda Finance guy initially told me that for SBI Car loan, they are very strict with documentation and they need maximum number of documentations. In case I want to go with other banks, I could have to follow less process and verification, as per Honda finance guy. But I told them no need to worry from my end as I can provide them whatever document they need. They took below documents from me:
1) 2 years Form-16 or ITR-V receipt
2) Address proof (Rent agreement, company HR letter if no proper local address proof)
3) 6 months banks statement of the salary account
4) last 3 months salary slip
5) Photo ID proof (passport, PAN card, driving license)
6) 2 passport size photographs
I took 3.5 Lakhs of Car Loan for 7 year. And for that my EMI has come Rs 6,000/- per month. So total amount repayment will be 5,04,000 with interest.
He informed me via an SMS and next day I have mailed him all the scan copies. After few days he called me to SBI branch for completing the formalities. Where he has already filled up all the forms in advance. Me and my wife were simply signing at the required places. After that I handed over the bank cheques as per Car Loan procedure and completed the Car loan application procedure. He congratulated me on that day itself in advance as the Loan amount will be sanctioned to Honda Dealer soon and I can take my Car in next 2 days. We were very happy to see the formalities completed so smoothly.
Now I am waiting for next month when the first EMI will deduct from my hard earned money and remind me to save more so that I can close this car Loan soon.