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SBI tightens eligibility(annual income) for car loans

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India's biggest Public sector bank, SBI(State Bank of India) has announced the increase in the annual income for the sanctioning of car loan.

Previously the eligible base limit was Rs.2.5 lacs annual income to be eligible for car loan. Now it is increased more than twice to Rs.6 lacs per year for non-SBI bank account holder, while it's Rs.4.5 lacs for SBI existing account holders. Below this income levels, no car loans will be issued to the applicants.

Considering the recession economy is facing, the slowdown industry is facing & the continuous rising fuel prices, this decision might come as a jolt to auto manufacturers which are trying hard & harder to push the sales of their petrol as well as diesel cars. This might prove unpalatable to customers also which are also somehow directly or indirectly affected by recession, layoffs, etc.

(Info Source: Economic times)

Lets see how private sector banks reacts to this move by SBI !

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This will further dampen the spirits of Indian Passenger Vehicle market, as this would affect the budget car buyers, which is the largest segment in the industry. Those who were looking to upgrade will further delay their purchases. Its high time some stimulus is given to the industry by the Govt, which seems very unlikely in the current scenario where there are other burning issues for the govt to tackle and Auto industry always receives the last preference

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