state bank of india car loan india

Last Thursday morning, when the managing directors of the six associates of the State Bank of India (SBI) went into a huddle at Nariman Point, the central office of India's largest lender, the agenda was clear.

Targeting the rural segment, particularly the Self Help Groups and increasing insurance penetration as well, SBI Life Insurance launched a group micro insurance product named Grameen Shakti here yesterday.

Cabinet on Friday approved enhancing the capital of State Bank of India by subscribing to a rights issue of equity shares worth 100 billion rupees ($2.5 billion), a minister said.

Rolling out its grand plans for rural banking, the country's largest bank State Bank of India (SBI) is setting up one lakh service points all over the country.

Sometimes, it's good to have more cash flow in a budget. If this sounds like something you need, you might consider a refinance car loan as a solution. You have probably heard of refinancing in terms of home mortgages or home loans. In the home-buying sector, refinance home loans involve getting financing for an existing loan by applying for a second loan that has a lower interest rate. The process for car loan refinancing is similar, and it provides a way to pay off one loan using money obtained by taking out a second loan.

Hyundai Motor India, a wholly owned unit of Hyundai Motor Co, is studying the feasibility of building a cheap small car to take on competition, a senior company official said on Thursday.

Hyundai, the second-biggest car maker in India after Maruti Suzuki India Ltd, is looking at building a car priced at between 100,000 and 200,000 rupees ($2,500-$5,000), said Ashok Jha, president of Hyundai India.

Engineers at its research and development centre in Hyderabad were studying the feasibility of such a car, he said, without disclosing details.

Tata Motors Ltd, India's No. 3 car maker, is scheduled to launch a small car priced at $2,500, the cheapest in the market, in 2008.

In order to attract the upwardly mobile Indian youth towards Ikon, Ford India has launched a limited music edition model Ikon IKool.

The model comes with gizmos like: Sony XPLOD i-Pod compatible MP3 Player, front round speakers and hi-wattage rear oval speakers, Nokia Bluetooth hands free kit, sporty leather vinyl seat covers, anti-theft system with remote entry and IKool decal on front fenders.

The IKOOL limited edition is priced at Rs5,08,990, or Rs31,990 higher than the base level price (ex-showroom, New Delhi). The model is available in new colour - copper rust, along with other popular colours such as jeans blue, paprika red, panther black, platinum and diamond white.

State Bank of India (SBI) announced a reduction in interest rates on various retail loans as well as loans for transport operators and farm mechanisation.

As part of the festive season offer, the bank has reduced interest rates on all new home loans, car loans, two-wheeler loans and personal loans. Home loans are now cheaper by 0.50% to 1% depending on loan maturities and the amount of loan. The bank is also offering a discount if the borrower has a salary account with it and a further discount if a higher margin is available.

Interest rates on new car and two-wheeler loans have been reduced by up to 1% depending on the amount and maturity of loan. New car loans are now available at 11% to 12% depending on the loan amount, maturity and type. Similarly, personal loans are now cheaper by 0.50% to 1%. In addition, the bank is offering 50% concession in processing charges on all personal segment loans.

The dusty patch of ground opposite Fergusson College road has been transformed. A computerised touch-screen kiosk at the entrance gives any kind of information a potential loan-seeker may want - details of products, rates, documentation, repayment - you name, it's there.

If that's not enough, there are hordes executives hovering around, ready to offer assistance. A cold drink is pressed into the thirsty visitor's hand, while yet another tieclad State Bank of India (SBI) executive urges you to test-drive one of the range Maruti vehicles parked there. In fact, if you have the basic documentation needed, you can even take a sanction on the spot and drive the car home.

For those in the market for an auto loan, he has a few tips: check for the actual amount you will be paying, not just the interest rate, since this can vary dramatically if the interest is calculated on a daily, monthly or yearly reducing balance. Look for hidden costs like processing fees, administration charges some lenders even slap an 'inspection charge' for allegedly checking up on the asset periodically) and also whether there will be foreclosure penalties for prepayment. Of course, before getting into that dream car, make sure you check your payslip to see how much you can really afford to shell out every month!

The State Bank of India (SBI) and Maruti Udyog today announced a mega alliance, SBI-Maruti Finance, to make car loans available at lower interest rates to more and more people across the country.

Under this tie-up, interest rate for car loans will vary from 10.50 to 11.25 per cent for a loan tenure between three years and a maximum of seven years.

The two giants will utilise each other's existing customer base - over 9,000 SBI branches and 256 Maruti outlets, to cross sell Maruti vehicles and SBI car loans in far-flung areas.

SBI Chairman A K Purwar said as far as disbursements for car finance under the tie-up were concerned, "The bank can stretch to any level in tune with the demands of the market.''

To a question, he said the SBI, which already commands a second position in car financing in the country, should be able to reach the first spot in about two year's time.

It's vroom time for car exchange. Small car owners are fast exchanging their little dinkies for bigger, sleeker models. So much so that at an average, out of the total number of cars bought in Lucknow circle, approximately 40% are being purchased through the exchange offer scheme. And around 10 city car dealers, cutting across brands, give a comparative growth of 15%-20% in upgradation of cars between January 2003 and December 2003.

Easy installments, affordable cash-down payment make it easy for the Great Indian Middle Class to look at snazzy wheels that cost a fortune. But converting a small car loan into a big car loan doesn't work out easy.

"That's because the car which is hypothecated to a lending agency or a bank needs to first be owned by the buyer. After that a Registration Certificate is prepared in the name of the owner, which is then transferred to the automotive company, under the exchange scheme," informs Raghu Sinha, senior official in a lending agency.

Excellent service and lower costs. A quick survey of similar schemes available elsewhere and you will find that SBI Car Loans for new and old vehicles offer you

->Lowest interest rates

->Longer repayment period of upto 84 months.

->No hidden costs or administrative charges.

->Finance for one-time road tax, registration fee, insurance premium and accessories

->No advance EMIs.(Some Banks/companies ask you to pay one or more EMIs at the time of disbursement of loan, thereby effectively reducing your loan amount.)

->Complete transparency : We levy interest on daily reducing balance method. When you pay one instalment, the interest is automatically calculated on the reduced balance thereafter. When you pay interest on an annual reducing balance, as charged by many other companies/banks, the interest amount for the coming year is determined on the amount outstanding at the beginning of the year. You continue to pay interest even on the amounts you repay during the year.