A Personal Loan is like the friend in the quote – “a friend in need is a friend indeed”. Personal Loan acts as a cushion to lean on if you’re facing a cash crunch or have an unexpected expenditure that you can’t fund on your own.
While there are tons of banks who offer tons of Personal Loans, sometimes it’s easy to get confused with so many options. And that’s why, today, we are going to tell you all about the SBI Personal Loan. Being a well-reputed National Bank of India, the SBI has a name for providing affordable financial products and for sustaining volatile market conditions.
SBI is known to charge low interest rates (charging interest on a daily reducing balance), low processing fees and no hidden or administrative charges. The bank will also process your loan with minimal documentation and without asking for security/ collateral in some cases. So, what are you waiting for?
Additional Reading: Do You Need That Personal Loan?
So, here’s all you need to know about the SBI Personal Loan.
- Xpress Credit Personal Loan
The Xpress Credit Personal Loan is offered to employees of the below entities who maintain a salary accounts with SBI:
- Central & State Government
- Quasi-Government
- Central PSUs
- Profit making PSUs
- Educational Institutions of National Repute
- Selected corporates who have business relationship with SBI
- Corporates who do not have a business relationship with SBI as well as who do not have ECR, subject to terms and conditions.
Income: You can get this loan if your Net Monthly Income (NMI) is Rs. 5,000 at the minimum. However, your Equated Monthly Installment (EMI) and NMI ratio should not exceed 50%. Which means if you are earning Rs. 5,000 on a monthly basis, your EMI on this loan should not exceed Rs. 2,500.
Loan Amount: you can get loans starting from Rs. 25,000 up to 24 times your NMI subject to a maximum of Rs. 15 lakhs. This is called a Term Loan.
Also, if you already have a Fixed Deposit with SBI, you can avail loans against it too. For this type of a loan you need to have a minimum of Rs. 5 lakhs and the maximum loan can be availed up to 24 times your NMI subject to a maximum of Rs. 15 lakhs. This facility is called an Overdraft (OD) and it is subject to monthly reduction in your deposit so that the deposit becomes NIL in 60 months.
Do note that the maximum loan amount for school teachers is capped at 12 months gross salary both under Term Loan and the overdraft facility.
Repayment: The repayment on this loan is a maximum of 60 months in case of term loans or residual service period in case of an overdraft, whichever is less.
Additional Reading: 4 Golden Rules Of Personal Loan Repayment
Provision for a second loan: In case you need another loan apart from the one that you have already taken, then you can choose to get a second loan. This loan can be taken after 1 year of disbursement of the first loan, provided that the first loan has been satisfactorily conducted. Which means, if you’re disciplined about your first loan and have been paying your EMIs on time then you will be eligible for a second loan should you need one. However, you cannot have more than two Xpress Credit Loans under your name unless, in some cases, where your overall EMI-NMI ratio is 50%.
Processing Fees: As mentioned earlier, SBI charges a very small percentage as processing fee as compared to other banks. In case of an Xpress Credit Personal Loan you will have to pay 1% of the loan amount + the Service Tax.
Penal Interest: In case of default, the penal interest on this loan is charged at 2% per annum over and above the applicable interest rate on the overdue amount for the period of default. If part instalment or part EMIs are overdue then penal interest is not charged.
Prepayment Charges: Any prepayment of EMIs in full or in part, and closure of account before the end of the loan term, will attract a prepayment charges of 3% on the prepaid amount. However, no prepayment/ foreclosure charges will be applicable if the account is closed from the proceeds of a new loan account opened under the same scheme.
Interest Rate: Interest rates for this loan starts from 11.90%. Do check out SBIs website for interest rates for each category.
- SBI Saral Personal Loan
The SBI Saral Personal Loan is designed to provide immediate financial help to people in need for any legitimate purpose including expenses for domestic or international travel, medical treatment, to meet financial expenses during a wedding, to pay for education, or purchase of assets.
Eligibility: You will be eligible for this loan if you are a salaried individual at a reputed corporate company, or if you’re a self-employed professional who has two years of experience.
Loan Amount: The limit on this loan is determined by your income and repayment capability. The minimum amount offered under this loan is Rs. 24,000 in metro and urban centres and Rs. 10,000 in rural and semi-urban centres. The maximum loan amount available under this scheme is 12 times the NMI for salaried individuals and pensioners subject to a ceiling of Rs. 10 lakhs in all centres.
Documents Required: If you’re already an SBI customer, you will only need to provide recent passport sized photographs. If you’re a salaried individual, you will need to furnish your latest salary slips and Form 16.
Repayment: This loan can be repaid in 48 EMIs/months.
Processing Fees: The processing fee on this loan is 2 – 3% of the loan amount plus the applicable Service Tax.
Prepayment Charges: Any prepayment of EMIs in full or in part, and closure of account before the end of the loan term, will attract a prepayment charges of 3% on the prepaid amount. However, no prepayment/ foreclosure charges will be applicable if the account is closed from the proceeds of a new loan account opened under the same scheme.
Interest Rate: Please check out SBIs website for interest rates for each category.
- Festival Loans
SBI also provides Personal Loans if you’re looking to cover festival related expenses. This unique facility is quite popular and has some great advantages too. For starters, the interest rates and processing fee on this loan are very low, making it affordable for everyone. There are no hidden or administrative charges and no prepayment penalties too.
Eligibility: you can apply for this loan if you are
- An employee of the government, PSUs, profit making public/private limited company/ institution with a minimum of 2 years’ service.
- Self-employed person with minimum 3 years work experience.
- A person having regular source of income from verifiable channels like Pension and interest from TDRs/NSCs/Govt. Securities etc.
- You have a net monthly income of Rs.3,000 and above.
Additional Reading: 4 ‘I’s of Personal Loan Rejection
Do note that your spouse’s income can also be considered in calculating the loan amount provided he/she acts as a guarantor of the loan or the loan is taken jointly.
Loan Amount: This loan is determined by your income and repayment capability. You can avail a minimum of Rs. 5,000 and a maximum of 4 times your NMI subject to a ceiling of Rs. 50,000.
Documents Required: To avail this loan you will require
- A recent passport size photograph.
- Proof of official address for self-employed individuals and professionals. This can include shop and establishment certificate/lease deed/telephone bill.
- Latest salary slip and Form 16, in the case of salaried persons. IT returns for the last two financial years, in the case of self-employed individuals and professionals
Processing Fee: 1% of the loan amount plus applicable service tax.
Prepayment Charges: Any prepayment of EMIs in full or in part, and closure of account before the end of the loan term, will attract a prepayment charges of 3% on the prepaid amount. However, no prepayment/ foreclosure charges will be applicable if the account is closed from the proceeds of a new loan account opened under the same scheme
Interest Rate: Please check SBIs website for interest rates on this loan.
With a good credit history and a good Credit Score you can get a Personal Loan easily. However, getting an approval on the loan is solely dependent upon the bank. Before you apply for a Personal Loan you may want to check your eligibility and calculate your EMIs.
If you’re looking for more Personal Loan options, don’t hesitate. Simply click on the button below.
Very concise piece of information indeed! This blog is very informative and to the point. After reading this, most of my queries are resolved. Now I can take an informed decision without worrying about the intricacy associated with a personal loan.
Hi vaibhav,
So glad to hear that we could be of help. Appreciate your feedback.
Cheers,
Team BankBazaar
This concise piece of information is truly invaluable! The blog provides a wealth of knowledge in a direct and informative manner. After reading it, my numerous queries have been satisfactorily addressed. I now feel confident in making an informed decision regarding a personal loan, free from concerns about its complexities.