Earn at least Rs 6 lakh per year for SBI car loan

CHENNAI/MUMBAI: The State Bank of India (SBI) has tightened the eligibility criteria for its car loans and will now extend finance to only those earning over Rs 6 lakh per annum. The bank has cited inflation as the reason behind the move, but, sources say, that the bank is being cautious given the slowdown in the economy. 

"Given the cost of petrol, maintenance, insurance and other costs, we feel that family income of Rs 50,000 is required for someone planning to buy a car," said a bank official. The bank has also started charging a processing fee of 0.51% of the vehicle's cost. 

 Bankers say tightening eligibility norms is a standard operating procedure during a slowdown in the economy. "In good times, banks factor in some increase in salary for young people. But during a slowdown when jobs are not growing, salary hikes are also not certain," he said.

Jeeutika  Sinha

PGDM 2nd year