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At present many of us wish to have car or some other vehicle. This is due to the fast moving and competitive world. To enable us to get our own vehicle or car, many banks have announced car loans. Car loans are categorized depending upon the vehicle or model we are going to choose. A new car, jeep, Multi Utility Vehicle (MUV) or SUV (any make or model) has special type of car loan. A used car / jeep / MUV /SUV (not more than 5 years old). (Any make or model) will have a special type of car loan. The service charges for the car loans in SBI bank are as following. The service charge is 0.50% of loan amount with a capital of Minimum Rs.500 to Maximum Rs 10,000 and if the application is rejected after pre-sanction survey, then 25% of processing fee will be charged. The interest rate for the car loan is as following. The interest rate is 8% (fixed) for the first year and 10% (fixed) for the second and third year.

Bank decides to give loan to a person depending upon the documents he submits for loan sanctioning. The loan is sanctioned upon the belief that the person has capability to repay the loan amount. This is decided on the basis of the documents he submits for the review of the committee. The documents are identity proof, address proof and age proof. The applicant can submit :

  • Passport
  • Photo PAN Card
  • Photo ration card
  • Voter's identity card
  • Driving license
  • Defense identity card
  • Government identity card.

The applicant can submit the following documents for address proof. The documents are :

  • Passport
  • Ration card
  • Society outgoing bill
  • Telephone (land/mobile) bill
  • Electricity bill
  • Driving license
  • Voter's identity card
  • Life Insurance Policy.

The documents which can be submitted for age proof are

  • Passport
  • Birth certificate
  • Valid driving license
  • Voter's identity card
  • School leaving certificate
  • LIC Policy or Premium receipt clearly indicating the applicant's age
  • Letter from the employer stating the age of the employee.

Another important point is that passport only can be used for both personal identities as well for address proof. These are the personal documents to be submitted for loan. The important financial documents are salary slip for employees and salary certificate for self-employed applicants