For SBI Car Loan

The SBI website claims that its car loans come with a lower interest rate, easy repayment options, low processing charges, more transparency, and above all, finance to include vehicle registration charges, insurance, and one time road tax. The car loan is offered for any new model of car/jeep/SUV, or any used vehicle that is not more than 5 years old.

Eligibility Criteria

• Age between 21 and 65.
• A permanant employee of State/Central Government, public sector undertaking, private company or a reputed establishment, or
• A professional or self employed person who is an income tax assessee, or
• A person engaged in agriculture or allied activities.
• Annual income above 75,000.
  

Loan Amount

There is no upper limit for the car loans issued by SBI. As much as 2.5 times of the annual income can be sanctioned in normal cases. However, for used cars, the maximum loan amount has a sealing of 15 lakhs.

Repayment Period

For new cars, the repayment period is set to a maximum of 84 months. For used vehicles, again a maximum of 84 months, but in this case, the period being counted from the date of the original purchase of the vehicle.

Things to Consider While Applying for a Loan

Availing a loan is quite easy these days. Virtually every bank in India is offering one loan scheme or the other to woo customers. But, from a customer point of view, choosing a loan scheme from the many can be a daunting task. This article talks about few aspects that every loan seeker must consider first before signing any loan agreement.

• The loan you may eventually qualify for has a direct bearing on the salary/income you draw annually. If it is low, try applying for a loan with your spouse or parents.
  
• If possible, always go for a loan scheme whose interest rates are calculated on a monthly reducing basis than a yearly reducing basis. Whichever way you analyze, the former method is always profitable for the borrower. Else, you'll end up paying more.
  
• Public sector banks have a lesser interest rates than private banks. In the case of some loan schemes, this difference is quite palpable.
  
• Always make it a point to check the prepayment fine. This is important especially if the loan you are applying for is a 15 or 20 year period (say).
  
• Keep an eye on the processing fee charged by the bank. Even if the bank says that they charge only a nominal processing fee of 2%, for a loan of 10,00,000, that will amount to 20,000, which is not at all a small sum in any counts. When you see such 'nominal' offers, set your mind calculator to do some simple calculations before proceeding further.
  
• If an insurance cover comes along with a loan scheme, you can go for it.
  
• Finally, make it a point to read and understand the terms and conditions, its various clauses and sub clauses. Understanding the fine print helps you to realize whether you really benefits or not from a particular offer.
  

Types of Home Loans

Home Loan, for many, is the loan availed for the purchase or construction of a new home. But, in reality, home loans are available for virtually everything from construction and renovation to extension, land purchase, and even the stamp duty. The different types of home loans issued by banks in India are described below.

Home Purchase Loan: This is the conventional home loan that we all know. It is meant for the purchase of a new apartment.

Home Extension Loan: This home loan is for funding any alteration to an existing home. For approval of this loan, however, one might have to get the approval from the concerned municipal authorities.

Home Construction Loan: Don't confuse it with Home Purchase Loans. This is for the construction of a new home on an existing property. Its terms and conditions are also widely different from Home Purchase Loans.

Land Purchase Loans: This is for funding the purchase of land for investment/construction purposes.

Stamp Duty Loan: For paying the stamp duty.

Bridge Loans: This type of loan is availed by those who wish to sell their present home and buy a new home somewhere else. The loan amount is used to buy the new home while the old home waits for its new owner.

Other types of home loans are Refinance Loans, Home Conversion Loans, NRI Home Loans, and Balance Transfer Loans. For more info, visit the home websites of major banks in India.

Car Loans in India

Owning a car is no longer a distant dream for the common man. With almost all banks in the country matching each other in offering car loans/automobile loans at very competitive rates and repayment terms, any average income earner now could easily buy a car without squeezing oneself. In fact, car loans are available for both new as well as used cars.

Even though banks offer different car loan schemes, the most suited ones for a customer are the advance EMI's scheme, deposit security scheme, and money scheme. To know more about the intricacies of the different schemes, the reader is requested to visit the bank website. The loan size depends on the model you are buying, its market price, resale value, and also the particular car loan scheme you have chosen. If there are any offers associated with the loan, you may get more concessions. As it is usually observed, with most banks, if it is a new car, you could get as much as 90% of the car's cost as loan. For used cars, however, not only the loan amount carries a cap, but also the interest rates will be higher and the repayment periods much lesser.

Car loans are available for 1 to 5 years usually. For used car loans, it is 2 years.

Educational Loans/Student Loans

Any student, who has secured admission in any of the colleges/institutes of repute, affiliated to recognized universities or recognized by AICTE, is eligible to apply for a student loan. One could avail as much as 7.5 - 10 lakhs for studying in India and up to 20 lakhs for studying abroad. Educational loans are issued by almost all public and private sector banks in the country, and for a prospective applicant, the job is just about filling the application form and submitting to the bank official.

The applicant is also expected to submit the following documents alongside the duly filled student loan application form.

· Proof of admission to the course for which loan is sought.

· Mark list of the respective qualifying examination.

· Course expenses schedule.

· Two passport size photographs.

· Last six months bank statement of the applicant.

· Income tax proof.

· If applying for foreign studies, copy of foreign exchange permit.

For the exact info on documents to be submitted, you are required to read the terms and conditions of the particular student loan scheme.

Every applicant is expected to payback the educational loan availed within 84 months in EMIs, starting from 12 months since completion of the course or 6 months after entering a job, whichever is earlier.