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Rate of Interest charged by SBI on Auto Loan

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Where an employer provides an auto loan to the employees without interest or at a concessional rate, the value of benefit arising to the employees from such loan shall be taxable as perquisite in the hands of the employees. The value of such perquisite is determined on the basis of interest charged by the State Bank of India for the same purpose as on April 1 of the relevant Financial Year.

Rate of Interest charged by SBI as on April 1, 2019 on auto loan are provided in below table.

Nature of Loan Type of Customer CIC Score Rate of Interest
       
New Car Loan Earning salary income 9.25%
New Car Loan Not earning salary income 750 or above 9.25%
New Car Loan Not earning salary income 700 to 749 9.45%
New Car Loan Not earning salary income (Man) Less than 700 9.75%
New Car Loan Not earning salary income (Woman) Less than 700 9.70%
New Car Loan under Loyalty Scheme Men 9.65%
New Car Loan under Loyalty Scheme Women 9.60%
Certified Pre-owned Car Loan under Loyalty Scheme Men 10.75%
Certified Pre-owned Car Loan under Loyalty Scheme Women 10.70%
Certified Pre-owned Car Loan Any customer 11% – 12%
Super Bike Loan Any customer 11.75%
Two-wheeler Loan Any customer 17.55%
Car Loan Lite Any customer 750 or above 11.40%
Car Loan Lite Any customer 650 to 749 12.40%

This includes employees of State/Central Government, PSUs, Corporations and Listed Pvt. Sector companies maintaining Corporate Salary Package account with SBI. This would also include Railway Salary Package, Police Salary Package, all Defence Salary Packages and PMSP Pensioners.

Also refer

  1. Computation of benefit arising from free or concessional loan
  2. Rate of interest charged by SBI on the personal loan
  3. Rate of interest charged by SBI on the home loan
  4. Rate of interest charged by SBI on education loan
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Concessional loan by the employer to employees is taxable

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