State Bank of India said that it was launching a car loan scheme 'SBI Ezee' for financing new cars on July 1 at interest as low as eight per cent for the first year.
Car buyers can get loans at reduced rates of 8 per cent per annum fixed for the first year and 10 per cent per annum fixed for the second and third year, a press release issued said.
Equated monthly installments (EMIs) for a SBI car loan for Rs 1-lakh will be as low as Rs 1,559 in the first year and Rs 1,647 in the second and third year, the release said.
The interest rate will be reset from the fourth year at the card rate contracted as on date of sanction, depending on the tenure of the loan.
The SBI car loan card rates are 0.25-0.75 per cent below the bank's PLR, the release said. The SBI Ezee Car Loan Scheme will have a full processing fee waiver during the scheme period.
SBI, which had introduced a special 10 per cent per annum fixed interest rate for the first year from February 23, has now extended it up to September 30.
This follows the tremendous response the scheme has evoked, the bank said.