How Much Salary Do You Need for a ₹10 Lakh SBI Car Loan?
Planning to Buy a Car? Here’s the Salary SBI Looks for a ₹10 Lakh Loan: The government introduced a new GST rate on September 22 last year, under which small cars now attract 18% GST instead of 28%. After this GST cut, car sales have increased sharply. Due to the lower tax burden, middle-class families can now afford new cars more easily.
If you are planning to buy a new car for your family and are thinking about taking a car loan, this calculation will help you. Here, we explain how much salary you need to get a ₹10 lakh car loan from SBI and how much EMI you will pay if you take the loan for 5 years.
How much salary do you need for a ₹10 lakh SBI car loan?
After the Reserve Bank of India (RBI) reduced the repo rate, banks also lowered interest rates on loans. SBI now offers car loans starting at 8.7% interest.
To get a car loan from SBI, you must earn at least ₹3 lakh per year, which means a monthly salary of ₹25,000. SBI allows customers to take a car loan of up to 48 times their monthly salary.
For example, if your monthly salary is ₹25,000, SBI can offer you a loan of up to:
₹25,000 × 48 = ₹12 lakh
So, with this salary, you can easily qualify for a ₹10 lakh car loan.
How much will your monthly EMI be?
If you take a ₹10 lakh car loan from SBI at 8.7% interest for 5 years, your monthly EMI will be around ₹20,613.
If you choose a 3-year loan tenure, your EMI will increase to about ₹31,660 per month.
SBI also offers car loans for a maximum tenure of 7 years. If you take the same ₹10 lakh loan for 7 years, your EMI will come down to around ₹15,937 per month.
Keep in mind that longer loan tenure means lower EMI but higher total interest.
