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SBI Car Loan Eligibility Criteria Revised; Rs 6 lakhs/annum Required
It looks like SBI is the first Indian bank to take an appropriate measure relating to dispensing of car loans in an economy that is slowing down and is showing no signs of recovery. The bank has announced that car loans, regardless of the price of the car, will not be provided to persons with an annual earnings of anything less than INR 6 lakhs.
It is evident that the bank is being cautious at a time when expenses are skyrocketing, while income has become stagnant. Thus, It is not a surprising move on the bank's part to take precautions by the way of tightening the car loan eligibility criteria.
The change also includes an increase in processing fee to 0.51 percent of the car's price.
"Given the cost of petrol, maintenance, insurance and other costs, we feel that family income of Rs 50,000 is required for someone planning to buy a car," said a bank official, as quoted by TOI. "In good times, banks factor in some increase in salary for young people. But during a slowdown when jobs are not growing, salary hikes are also not certain."
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