With its incredible countryside and bustling city centers, India provides an experience to delight the senses. It’s only natural to want to explore this lush country to the full. Although public transport is readily available, it can be tough to navigate and overcrowding is a given. To avoid this, many take to vehicle finance as the solution. It provides the necessary funds for customers to purchase a vehicle and allows them to repay the finance over a period of time. State Bank of India Vehicle Finance is top of the range and provides easy access to that dream car. This review takes a look at these products with the intention of comparing it to some of the best in the world.
A bank that did not do too well in this category, is National Australia Bank. The full review on this product contains the reasons for the lowered score.
About State Bank of India
This is one of the oldest banks in India and originally started as a small bank for the locals in Calcutta. The popularity of the bank grew and before long, the services needed to extend to other parts of India. State Bank of India planted many branches in the rural areas in order to accommodate the rural and agricultural population. This was not only a great boost to the economy but also allowed the bank to grow its asset holdings. It now boasts the largest asset holdings in the country, with the closest competitor only managing a quarter of those asset holdings.
A full review on a bank that does well in France, Credit Agricole, is available to our readers.
How To Get the Most Out of Owning A Vehicle
Nothing beats the feeling when driving off the showroom floor in a shiny new vehicle. But there are also a few pitfalls that can make the journey less than pleasurable. To avoid these pitfalls, motorists are encouraged to take a look at various options available to them.
Ensure It’s Insured
There are just too many unknown factors when it comes to the safety of a car. Theft, accidents, and damage are all things motorist may have to face. When this happens, it’s important to have sufficient cover or else the owner might face severe financial losses. This also includes 3rd party insurance to cover losses caused to others.
Maintenance and Servicing
Although these seem expensive, it’s important that motorists keep up with the servicing to ensure their vehicle remains in a good condition. Regular servicing could also prevent serious issues and damage to the vehicle in future. Proper maintenance will ensure that the vehicle remains in a good condition for a number of years.
Choose A Vehicle That Suits the Personal Situation
This is without a doubt the most important part of the process. The family man purchasing a 2-seater sports car will have a hard time meeting his commitments. Also, those who live in hilly areas or areas with rough terrain should purchase a vehicle that suits the area. Another personal situation that should be a deciding factor when it comes to purchasing a vehicle, is the budget. The installment should make up no more that 25% of the take-home salary and other payments should still be honored comfortably.
State Bank of India Vehicle Finance Product Offerings
SBI New Car Loan Scheme
Customers who wish to take to the roads in a new car will find this option to suit their needs. Furthermore, they will also enjoy competitive interest rates.
- The loan option provides customers with the lowest interest rates and installments.
- There is also a repayment term of 7 years.
- Furthermore, the finance includes On-Road price, such as extended warranty, total service package, and more.
- Also, the interest is calculated on the daily reducing balance.
- There are also no prepayment penalties or foreclosure charges.
- Customers don’t pay advance installments.
- The bank also provides a reimbursement if the customer purchased the car with their own funds. The car shouldn’t be older than 3 months.
- Optional SBI Life Insurance cover and overdraft facilities are available.
- The funds can be used for the purchase of a new passenger car, MUV, or SUV.
- Finally, customers need to meet the criteria in order to apply for the loan.
SBI Combo Loan Scheme
Customers who aren’t just satisfied with a car and wish to purchase a two wheeler as well will find the combo loan suitable.
- The loan doesn’t have an advance installment.
- Customers enjoy the longest repayment tenure, which is 7 years.
- They also enjoy the lowest interest rates and installments.
- Furthermore, customers enjoy an LTV of 85% of the on-road cost of the car and two-wheeler.
- Also, the interest is calculated on a daily reducing balance.
- The installment is flexible and can be paid any time during the month.
- Customers are not charged a pre-payment penalty.
- Finally, customers have access to optional SBI Life Cover.
Certified Pre-Owned Car Loan
This loan is ideal for those who wish to purchase an older model, as long as its no older than 5 years. Furthermore, there is no advance installment.
- Customers enjoy a repayment term of up to 5 years.
- They also enjoy the lowest interest rates and installments.
- Furthermore, the interest is calculated on a daily reducing balance.
- Also, customers can pay their installment any time of the month.
- The processing fee is only 1% of the loan amount.
- Finally, customers enjoy optional SBI life cover.
SBI Loyalty Car Loan Scheme
Customers who happen to be SBI Home Loan customer should take a look at this exclusive offer.
- The finance provides 100% on-road finance.
- There are certain maximums on this loan amount that is calculated on the equity of the property.
- Furthermore, customers enjoy a repayment period of 7 years.
- Finally, customers are not charged a pre-payment penalty on this loan.
Super Bike Loan Scheme
This is a suitable loan for those who wish to add some speed to their lives. Furthermore, the loan is specific for bikes with 500cc engine capacity or more. Also, the margin on the loan is 15% of “ex-showroom price” of the bike.
Those who prefer to use their finance for other expenses should consider a personal loan from State Bank of India.
What We Like About State Bank of India Vehicle Finance
If there is a vehicle product out there, there is a loan for it. We just had a look at the personal offerings, however, in the Agri and Commercial divisions the bank has an even greater range. This is good news for customers who want more than just an ordinary passenger car. The range extends to superbikes, vehicle combos, and more.
Not only is the range extensive, but there are also different loan packages. Those who wish to leverage the equity in their properties have the chance to do so. Furthermore, it enhances customer satisfaction and loyalty.
The structure of the loans is also customer-friendly. For instance, the loans offer a longer repayment term of between 5 to 8 years. Also, the repayments are not tied down to a specific day in the month, and the customer can repay on any day during the month.
Finally, the bank is quite adamant that customers enjoy the lowest installments and interest rates with them. This makes the bank highly competitive and also quite attractive to prospective new customers.
What We Don’t Like About State Bank of India Vehicle Finance
When there is a comprehensive list of options available to clients such as this one, it’s hard to find fault with it. Unfortunately, however, there is no information on the pricing on the vehicle finance which makes it a little tough to determine whether it is reasonable at all. Although the interest rates, according to the bank, are some of the lowest on the market, the service fees might not be.
Critical Reviews Rating State Bank of India Vehicle Finance – 10 of 10
Once again State Bank of India delights us with their impressive product range. It’s hard to imagine that a bank based in a developing country has it’s priorities in check, however, this bank can show many of its competitors how it’s done. The bank has a vehicle finance division that hardly has any equal.
Furthermore, customers also enjoy the benefit of the best interest rates, according to the bank. This makes it highly competitive which reduces the chances of customers feeling the need to shop around. The bank also claims to have the lowest installments, which means they can’t have service fees that are too high. For this reason, the lack of pricing on the website isn’t enough for us to rate the product range down.
Finally, when it comes to vehicle finance, customers want to know that it is a simple process and that they’re in good hands. It’s safe to say that customers will enjoy the tenure of the loan as the bank makes it very easy for customers to commit to their installments. This is through their flexible premiums. We give the perfect score on this products without hesitation. Other banks across the world can take a leaf from Bank of India’s book in terms of product development and packaging.
We also did a review on the State Bank of India Mortgages.