Car Loan - Sbi Maruti Subvention Scheme

Sbi Maruti Subvention Scheme is a very good car loan scheme for those who are planning to buy Maruti Alto or Alto K10 car. Under this scheme, the interest rate would be only 9.99% (fixed), with maturity flexibility of 36, 48 or 60 months.

The prevailing car loan interest rates are as high as 16%, so this is really a good scheme, infact the car loan turns out cheaper than the fixed deposit interest rates offered by many banks.

Icing on the cake is the waiver on the processing fee.

This scheme is better than the Sbi Advantage Car Loan Scheme (interest rate is 11.25%).

Scheme Validity

The scheme is valid till 31st Dec, 2011. This scheme along with the discounts being offered by the car dealers makes it a bargain purchase of Alto/Alto-K10

Loan Amount

The maximum loan amount under this scheme would be Rs. 2.5 Lakhs.

Scheme Details

The scheme detail is highlighted in the table below

Eligibility	Between the Age: 21 – 65 years (for sanction of loan),loan can be granted for persons beyond 65 years who have sufficient, regular and continuous source of income for servicing the loan. Loan must be fully repaid before the borrower attains the age of 70 years. Minimum net annual income of Rs. 1,00,000/-
Who are Eligible	Individuals – Salaried, Professionals, Self Employed, Businessmen, agriculturist with Minimum net annual income of Rs. 1,00,000/-
Purpose	For purchase of All variants Alto and Alto K10 including CNG
Maximum Loan Amount	Maximum Loan Amount is Rs. 2.5 lacs
Security	Hypothecation of vehicle and noting of hypothecation charge in the books of R.T.O.
Processing Fee	No processing fee is applicable
Rates of Interest	9.99% p.a. (fixed)
Re-payment Period	Fixed repayment period of 36 months, 48 months or 60 months
Penal Interest	For Loans above Rs.25000/- , if the irregularity exceeds EMI or Instalment amount, for a period of one month , then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part instalment or part EMI remains overdue, then penal interest should not be levied
Documents required	Statement of Bank account of the borrower for last 12 months. 2 passport size photographs of borrower(s). Signature identification from bankers of borrower(s). A copy of passport /voters ID card/PAN card. Proof of residence- Tax receipts, Telephone bill, Electric bill etc..  Latest salary-slip showing all deductions  I.T. Returns/Form 16: for last 2 years for salaried employees and 2 years for professional/self-employed/businessmen duly accepted by the ITO wherever applicable to be submitted. Proof of official address for non-salaried individuals
Prepayment Penalty	No Pre-payment Penalty will be charged
Mode of disbursement	Amount should be remitted direct to the supplier/dealer by means of RTGS/NEFT after deducting the subvention amount as per annexure-. The subvention amount will be credited to Interest Account.
Insurance	The vehicle purchased is to be kept comprehensively insured in the name of the borrower for the market value or at least 10% above the loan amount outstanding, whichever is higher, and the Bank’s interest as a hypothecatee should be noted in the certificate of insurance and insurance policy.  A copy of this is to be retained with the loan documents.

Source: SBI

Disclaimer: MoneyPlant Financials has no financial interest in the above said scheme of SBI or Maruti. However the author owns share in SBI.