The eligibility for loan issuance for salaried individual for car purchase has been raised from Rs 250,000 per annum to Rs 600,000 per annum, as per the recent circular of the bank.
For the SBI account holder, the limit has been raised to Rs 450,000 per annum.
SBI currently offers car loans at an interest rate of 10.45 per cent, as per the bank's website.
Giving the rationale for increase in the eligibility criteria, a senior bank official said the decision to revise upwards the gross income limit is taken in view of moderation in economy.
Economic condition has bearing on the repayment capacity of the borrowers, the official said, adding, this is preemptive step to ward off fresh slippages.
The bank's auto loan portfolio grew by 38.71 per cent to Rs 26,411 crore at the end of first quarter of the current fiscal as against Rs 19,040 crore (Rs 190.4 billion)
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