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We live in an era where credit/loans dominate the lifestyle of every individual. People across India have widely accepted the idea of taking credit to finance their aspirations. Right from procuring capital to start one’s own business to a health emergency or investing in a new property/ vehicle to funding education, planning a holiday to even shopping for a mobile phone, etc

sbi Car loan growth in India is expected to be 7.90 percent by the end of this quarter, Also, with booming digitalization and due to the rise of fintech companies entering the Indian market, the credit scenario will soon be at its all time high.

Having a good credit score is definitely something one should ensure to avail of the maximum benefit in terms of the interest rate when it comes to a loan. It is easy to check your credit report. While none of the credit information companies or bureaus offers a credit report currently, you can purchase the same upon payment of a nominal fee. After all, why let your credit score be the reason because of which you are unable to realize your dreams?

But irrespective of your credit score, do remember to compare sbi Car loans before you narrow down your decision and apply to a specific financial institution. Similarly, if purchasing a car, do perform a sbi car loan interest rate comparison before driving home your new vehicle.

Staying credit healthy offers you loans at the most competitive pricing, hence start working on your credit score now, to walk away easily with your much longed-for home or car in the near future!

Cibil Score For Sbi Car Loan:

The most important factor which every bank looks is the  car loan applicant’s CIBIL score in order to the judge the repayment capacity of the individual. Based on this single factor, any loan or credit card application can get denied.

For a SBI car loan, Bank consider a CIBIL score of 750 and above ideal i.e. chances of loan denial are reduced at least due to the CIBIL score.

About Cibil Score For Sbi Car Loan:

Credit Information Bureau of India Limited is an organization which maintains database of all the borrowers i.e. loan or credit card customers of financial institutions. These institutions provide details of their customers to CIBIL which contains mainly the borrowing details such as loan amount, repayment history along with other details. Financial institutions then verify these details whenever any loan or credit card application is made. The reason for scrutinization is to evaluate the repayment capacity of the applicant in order to cut-off the defaulters which are loss making for the banks.

State Bank of India offers vehicle loan scheme for salaried, self-employed individuals as well as companies, trusts and societies. The bank offers separate vehicle loan scheme for all your needs. The interest rate charged by the bank for vehicle loan varies from 8.70% to 17.20% and the processing fee varies from 0.50% of the loan amount to 2% of the loan amount. Your car or bike can be financed up to 85% of the loan amount, which also depends on the income and repayment capacity of the individual.

This review discusses all these features in details and includes turnaround time, loan processing ease, as well as customer reviews. Reading this review carefully will help you in making an informed decision regarding your vehicle loan needs.

How Does Cibil Score Can Reject My Application?

Yes, your sbi car loan application can be rejected if your credit score isn’t good. There are few things that you should know. A cibil or credit score of higher than 750 will get you approval from all Banks. From (650 to 750) there will be certain Nbfc who may be able to give you loan.

If you haven’t taken any credit card or loan your cibil score is 0 and there will be less Banks to provide you loan at that time and best is to approach the bank where you have account.

If you have applied and have got rejected your cibil score and it’s your first loan then your score is -1 and most Banks will not offer you loan.

The setting of such favourable interest rate also depends upon your income, CIBIL score and repayment capability.

4 things To Do Before Applying For A SBI Car Loan:

Check CIBIL score: Your sbi car loan application can also get rejected because of bad credit. Many people are still not aware of credit score or they do not take it seriously. However for a financial institution; credit score is extremely important to evaluate credit worthiness of the applicant. Credit score is given by credit bureaus. They calculate this score based on the credit history of borrower. And this financial history is provided to the bureaus by the member banks. So before applying for a loan, get your credit score checked.

Loan tenure: Always take shortest loan tenure. Longer the repayment period, higher would be the total cost of the car. Although you will have to shell out higher interest in case of short tenured loan. But sooner you come out of debt, better would be your credit score.

Bargain on interest: This is especially for existing customers of the bank. If you have a long relationship with the lender, then bargain for lower interest. Check whether loan offered by the dealer is saving you money or not. Dealers normally try to hard sell loan from the banks which they have tie-up with. However it is your duty to do thorough research on best interest rates available in the market.

Hidden charges: Every bank applies various other charges apart from the interest rate and late payment. These charges are – part and full prepayment, processing, documentation, cancellation and others. So before signing on the dotter letter, re verify and compare these charges. These charges are actually not hidden as banks do not hide them. It is actually the applicant’s mistake who do not read the fine print.

 
 

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At Millennium Credit Solutions, we believe that life is easier with excellent credit.
We have a dedicated staff devoted to assisting you with your future financial needs.
We provide advice and information on how to best manage your current credit to maximize the impact to your qualifying ability.
 
 

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