Zee Media Bureau
New Delhi: If you are earning below 50,000 per month, you must forget about getting an SBI (State Bank of India) car loan.
The largest public lender has decided to curb loan eligibility for individuals whose gross income is below 6 lakh per year. The move is reportedly aimed at reducing credit default risk.
SBI currently offers car loans at an interest rate of 10.45 percent, the lowest rate of interest provided by any bank. The bank also charges 0.51% of the loan amount subject to minimum of Rs 1,020 and maximum of Rs. 10,200 towards the processing fee.
As per reports, in the wake of poor growth rate, inflation, depreciation in the currency, the bank fears that buyers might not be able to pay back the loan. Moreover, uncertainty relating to jobs and hiring has also added pressure upon the bank to tighten the loan criteria.