Sunday, June 28, 2009

State Bank of India (SBI) said on Saturday it was to launch a car loan scheme 'SBI Ezee' to finance new cars on July 1 at interest as low as eight percent for the first year.

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

Equal sign between the monthly installments (EMIs) for a SBI car loans for Rs 1-lakh will be as low as Rs 1,559 in the first year and Rs 1647 in the second and third year, the release said.

The interest rate will be reset from the fourth year in a card rate contract as at the date of sanction, depending on the employee of the loan.

The SBI car loan card rates are 0.25-0.75 per cent below the bank's PLR, the release said. The SBI Ezee Car Loan Scheme will have a full processing fee waiver under the scheme period.

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

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

"In the last year, SBI has marched in front of the car space and funding is now the largest Financier of new cars. The bank has taken proactive measures to increase the number of cars sold in the financial amounts and some car manufacturers began showing good growth from March 2009 and beyond banking on the strength of the popular interest rate offer from SBI, "the release said.

The scheme has a long repayment period of seven years and no pre-EMI. Moreover, it has an advantage of a free accident insurance for loans outstanding up to Rs 40 lakh.

It is to finance up to 85 percent for on-road price of the car and the interest is calculated on daily outstanding balance, which reduces the interest burden on the borrower against the monthly outstanding balance or flat rate basis which is charged with a couple others, the release said.

SBI has entered into strategic tie-ups with Maruti Suzuki India and Tata Motors and funding agreements with all major car manufacturers, including Hyundai Motors, the release said.

Source : newsx.com

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