Used Car Loan

Need financial help for Used Car? Looking for a better reverse mortgage option? SBH has the right loan for you. Whether you are a journalist or into security service, our loans encompass all.
Used Car Loan


Purpose : Term Loans are sanctioned by the Bank for purchase of passenger cars, Multi Utility Vehicles (MUVs) and SUVs not more than five years old. However, financing of old vehicles on the basis of duplicate Registration Books will not be entertained.
Loan Amount :
  1. Salaried Persons: 48 times the Net Monthly Income (NMI)
  2. Self Employed: 4 times the Net Annual Income (NAI)
Margin : 15% of the cost of the vehicle
Processing Fee : nil
Interest : Floating rate of interest liked to ‘BASE RATE’

Used vehciles less than 3 years – 15.55% p.a.

Used vehicles 3 to 5 years – 15.80% p.a.


  1. Individual between the age of 21-65 years of age.
  2. A permanent employee of state/ central government, public sector undertaking, private company or a reputed establishment
  3. Professionals, self-employed, businessmen who is an income tax assessee or
  4. Person engaged in agriculture and allied activities.
  5. Net Annual Income `250,000/- and above.


  1. The loan should be repaid in suitable monthly installments acceptable to the customer in such a manner that the loan is liquidated within a period of 7 years.
  2. In case of Car Loans to agriculturists, the periodicity of installments for repayment should be decided upon the merits of each case, on a realistic basis, coinciding with harvest of the crop at half yearly/yearly intervals or coinciding with the generation of income from ancillary agricultural activities pursued by the borrower e.g. dairy/ poultry etc. or in monthly/ quarterly installments in case of other regular sources of income.
  3. For old vehicles recovery should be such that the loan gets repaid within 7 years from the date of original sale.

Takeover of Loans

  1. Takeover of car loans may be considered selectively where:
    1. The vehicle is not more than 2 years old
    2. It is a single ownership vehicle
    3. No insurance claim has been availed and
    4. The account of the borrower with the other bank is a Standard Asset i.e. all repayments have been made as per terms of sanction of the original financier.
  2. The loan should be repaid within 7 years from the date of the original purchase of the vehicle
  3. Reimbursement of costs of unencumbered vehicles can also be given under the above takeover norms and other terms of financing old vehicles up to 2 years of age.
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