SBI offers auto loans at 10% for first year

Feb 21, 2009 Personal Finance

Looks like State Bank of India (SBI) has decided to flex it’s muscles big time… After slashing home loan rates to 8% for a year, they have announced an offering of auto loans at an interest rate of 10% for the first year (presently 11.50-12%).

Only new buyers are eligible for this loan, and this offer is valid for all loans approved until till 31-May-09. After completion of a year, the rate will be reset to the existing rate. Customers will have to pay 15% of the on-road price as down payment, regardless of the car model being purchased.

The scheme also offers a long repayment period, which is 84 months, and the bank will calculate the interest on the loan on daily outstanding balance.