The SBI Ezee Car Loan Scheme offers car loans at 8% per annum for the first year and 10% for the second and third years. The EMI (equated monthly instalment) on a car loan will be as low as Rs 1,559 in the first year and Rs 1,647 in the second and third years for every Rs 1 lakh. The interest rate will be reset from the fourth year at the card rate (rack rates which doesn’t include dealer discounts or other subventions) contracted on the date of sanction, depending on the tenure of the loan.
This seems to be the scheme that is quite helpful as the uncertainity of rising interest rates is prevalent. This scheme will lock the loan into low rates during the initial years particularly if you are looking to pay off the loan in first 3-5 years.
The bank offers loans for 3 years under this scheme. Evaluate your repayment capacity and stick to the schedule since if in case, you want to extend yu loan tenure, then it will come to you with a penalty of 2% of the repaid amount, but depending upon the bank’s terms and conditions.