Car, the word may sound fancy to those who couldn't afford the same, but wait a minute, not anymore! Yes, that’s right! Now everyone can afford his/her favourite vehicle with a lot of ease. Well, with the help of many financial options being available in the marketplace, it would not be wrong to say that going for your favourite car is no more a hassle these days. Yes, with the presence of some of the best lenders, i.e.
State Bank of India, there is no denying the fact that availing a loan is a cake walk. This reputed bank with its best of offering in the form of a car loan ensures to fulfill the dreams of many. But, before going for the same, it is important that you should be aware of SBI car loan interest rate so as to have a hassle-free journey. The bank, at present offers the credit at an interest rate of 9.10%-9.20% p.a. (women) and 9.15%-9.25% p.a. (others) to ensure that all borrowers can own their favourite car.
Knowing about the rates will automatically helps you in enjoying a smooth and a bumpy-free ride. I known you must be wondering why we are stressing so much on interest rates and why they are important? Well, let me tell you that rates are no doubt the most crucial parameter which can either make or break the situation for you. Wanna know how? Just go to the article below…
Why people look at interest rate before saying yes to a lender? Well, the reason of the same is the fact that everyone tries to avail the car loan at lower rates just because the lower the rates are, the better it is for a borrower. Yes, it further helps in reducing the EMIs, interest outgo and total amount payable during a loan. You can say, it is a key factor that can make your journey a hassle-free experience. In fact, you can say other things revolve around this standalone point, hence it is very important.
Buying a car through a loan is a big move, hence one not only needs to mentally, but financially prepared for the same as well. Yes, you need to be aware with the fact that it is a matter of fact of 5-7 years and till that period you need to repay the loan. You need to pay the monthly installment till that time, hence should be doubly sure to repay the same without any default. The rates have a direct impact on your monthly installments and interest outgo. The lower the rates being offered by the lender to you, the less burden will be on your pocket. Yes, your monthly installment amount and your interest outgo will also be reduced, sounds great isn't it? However, the reverse you can expect with higher rates. This is the reason that why people are fond of availing the loan at attractive rates as it’s going to be a win-win situation for all the borrowers out there.
Let’s just take a look at the example below to have a better understanding of the same.
Suppose, Ajay Sharma, a 26 year-old Sales Executive by profession is looking to buy a brand new car for his family. Thus, to meet this need, he had availed a loan of ₹5,00,000 at an interest rate of 9.10% for a tenure of 5 years. Everything was going fine, Ajay was also repaying his EMIs timely. But all of a sudden due to hike in rates, the lender also increased his current rate upto 3 basis points, hence making it to 12.10%. Now, this rate change came as a shock to Ajay as all of a sudden his EMIs and interest outgo had increased. This latest updation had impacted his monthly budget badly as he had to manage his expenses within that limited monthly income. It was a hard time for him as he had to minimize all his extra expenses so as to avoid the default on the loan. But finally, after struggling a lot, he somehow managed his monthly expenses smartly and came out as a winner by repaying the loan without any default.
So, I hope with the help of an example mentioned above, you are now familiar that how SBI car loan interest rate is a vital parameter that can change your game for ever!
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