No Car Loan If Annual Income Less Than Rs. 6 Lakh, Says Sbi

[Sidhu...Sidhaarth Roy]

[b]New Delhi[/b][color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)]: Individuals with annual income of less than [/background][/font][/color][color=#333333][font=RupeeForadianRegular][background=rgb(228, 232, 232)]Rs.[/background][/font][/color][color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)] 6 lakh will not get a car loan from State Bank of India (SBI) as the bank has tightened eligibility conditions for its four-wheeler loan scheme with a view to minimising possible defaults.[/background][/font][/color]

[color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)]The eligibility limit for loan issuance to salaried individuals for car purchase has been raised from [/background][/font][/color][color=#333333][font=RupeeForadianRegular][background=rgb(228, 232, 232)]Rs.[/background][/font][/color][color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)] 2.5 lakh per annum to [/background][/font][/color][color=#333333][font=RupeeForadianRegular][background=rgb(228, 232, 232)]Rs.[/background][/font][/color][color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)] 6 lakh per annum, as per a recent circular by the bank. For SBI account holders, the limit has been raised to [/background][/font][/color][color=#333333][font=RupeeForadianRegular][background=rgb(228, 232, 232)]Rs.[/background][/font][/color][color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)] 4.5 lakh per annum.[/background][/font][/color]

[color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)]SBI currently offers car loans at an interest rate of 10.45 per cent, as per the bank's website.[/background][/font][/color]

[color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)]Giving the rationale for the increase in the eligibility criteria, a senior bank official said the decision to revise upwards the gross income limit is taken in view of the moderation in economy.[/background][/font][/color]

[color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)]The official futher said that this is a preemptive step to ward off fresh slippages.[/background][/font][/color]

[color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)]The bank's auto loan portfolio grew by 38.71 per cent to [/background][/font][/color][color=#333333][font=RupeeForadianRegular][background=rgb(228, 232, 232)]Rs.[/background][/font][/color][color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)] 26,411 crore at the end of first quarter of the current fiscal year as against[/background][/font][/color][color=#333333][font=RupeeForadianRegular][background=rgb(228, 232, 232)]Rs.[/background][/font][/color][color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)] 19,040 crore at the end of same quarter of the previous fiscal year.[/background][/font][/color]

[color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)]Market share of the bank rose 2.91 per cent against 2.44 per cent in the same period last year.[/background][/font][/color]

[color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)]Gross non-performing assets of the bank rose to 5.56 per cent as compared to 4.99 per cent at the end of the first quarter of 2012-13.[/background][/font][/color]

[color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)]At the same time, net non-performing assets (NPAs) of the bank rose to 2.83 per cent as against 2.22 per cent at the end of June, 2013.[/background][/font][/color]

[color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)]Snapping a nine-month streak of declines, domestic passenger car sales grew by 15.37 per cent to 1,33,486 units in August this year, compared to 1,15,705 units in the same month last year.[/background][/font][/color]

[color=#333333][font=Arial, Helvetica, sans-serif][background=rgb(228, 232, 232)]Industry body Society of Indian Automobile Manufacturers (SIAM), however, played down the feat saying the growth was mainly due to low base effect as a result of the month-long lockout last year at the Manesar plant of the country's largest car maker Maruti Suzuki India (MSI).[/background][/font][/color]

[Piscop]

Good move..

[pinky123]