Business   

‘Ezee’ car loan scheme from SBI

MUMBAI: State Bank of India on Saturday said that it was launching a car loan scheme ‘SBI Ezee’ for financing new cars on July 1 at an interest rate as low as eight per cent for the first year.

Car buyers can get loans at reduced rates of 8 per cent per annum fixed for the first year and 10 per cent fixed for the second and third year, a release issued here said.

Equated monthly instalments (EMIs) for an SBI car loan for Rs. 1 lakh will be as low as Rs. 1,559 in the first year and Rs. 1,647 in the second and third year, the release said.

The interest rate will be reset from the fourth year at the card rate contracted as on the date of sanction, depending on the tenure of the loan.

The SBI car loan card rates are 25-75 basis points below the bank’s PLR, the release said.

The SBI Ezee car loan scheme will have a full processing fee waiver during the scheme period.

SBI, which had introduced a special 10 per cent fixed interest rate for the first year from February 23, has now extended it up to September 30.

This follows the tremendous response the scheme has evoked, the bank said.

The scheme has a long repayment period of seven years and no advance EMI. Besides, it offers the benefit of a free accident insurance cover for loan outstanding up to Rs. 40 lakh.

There is financing up to 85 per cent on the on-road price of the car and interest is calculated on the daily outstanding balance, which reduces the interest burden on the borrower as against the monthly outstanding balance or flat rate basis as charged by a few others, the release said.

SBI has entered into strategic tie-ups with Maruti Suzuki and Tata Motors and financing arrangements with all major car manufacturers, including Hyundai Motor, the release added. — PTI

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

India Cements posts lower net profit
ITC lifestyle products make inroads into international markets despite slowdown
Banks turn attention on SME sector
‘Ezee’ car loan scheme from SBI
Call for adapting laws for global markets
Support offered for skill development in MSME sector
Zabeel International in Kochi
Bullion Rates

Copyright © 2009, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu