State Bank of India Personal Loan

Features and Benefits of SBI Personal Loan

State Bank of India, or SBI, is the largest public sector lender in the nation, with over 45 crore customers worldwide. The bank has a long history dating back over 200 years, and through its subsidiaries, it facilitates various operations. The bank provides pre-approved personal loans at competitive interest rates. The institution also offers unique programmes for various income groups. You can submit your KYC information and papers through the online channels established by the bank.

A lower SBI personal loan interest rate isn’t the only deal-breaker for the bank. The following features and benefits must be considered when choosing the State Bank of India.

• SBI provides the "Kavach Personal Loan," a collateral-free loan, for medical care for oneself and immediate family. Up to INR 5 lakh in personal loans are available at an attractive interest rate of 8.5% over 60 months.
• The SBI offers customised personal loans to pensioners, government employees and salaried employees that maintain a salary account with the SBI. The Bank also offers loans for cancer treatment and pre-approved loans to cater to diverse requirements.
• If you have extra money, you can lower your interest rate by paying the minimal prepayment penalty of 2% annually and terminating your loan account.
• SBI loan interest rates are subject to change throughout the repayment tenure. When you pay off your EMIs or make prepayments, your EMI is reduced because it is calculated daily on the remaining balance of your principal amount.

Eligibility Criteria of SBI Personal Loan

SBI personal loan eligibility criteria must be met by individuals seeking personal loans. A borrower must fulfil the following  SBI personal loan requirements:

• Salary account with SBI
• 50% or lesser EMI/NMI ratio 
• The applicant must have a minimum income of INR 15000 per month.
• An employee of Central/State/Quasi government, PSUs, and selective corporates.

Factors Affecting SBI Personal Loan Eligibility

The factors affecting SBI personal loan eligibility are explained below:

Monthly Income

The applicant must produce salary proof to the bank to ensure punctual repayments. The criterion for income also depends on location. Major cities like Mumbai, Delhi, and Bengaluru often have higher interest rates due to the high cost of living.

Credit Score

It allows the lender to assess your prior credit usage for items like loans and credit cards to determine how responsible you have been. For instance, most lenders in India refer to the CIBIL score of the applicant, which ranges from 300 to 900. A high credit score would better the chances of approval. 

Age

The lender uses your age to estimate the number of remaining working years. Lenders frequently prefer employed candidates between the ages of 23 and 58. The applicable age for self-employed professionals and non-professionals generally ranges from 28 to 65 years.

Current Liabilities

Your current financial obligations must be fully disclosed to the lender, including any mortgages, school loans, and other debts. The lender would want to ensure that you are eligible to maintain the repayment of the loan and existing debt simultaneously. 

Work Experience

Candidates who have held jobs longer are often seen to have a more secure financial future than those who have only recently begun working. Depending on the lender you select, the industry you’re employed in, and other factors.

SBI Personal Loan Fees and Charges 

SBI Bank charges no fees when you apply for SBI personal loan. However, the bank may charge an amount when processing the loan, or a fee may be levied. The applicant may have to bear the following charges on the SBI personal loan:

Loan Scheme	Processing Fee	Prepayment charge	Penal Interest
Xpress Credit	Processing fee waived off till January 31, 2022	3% on the prepaid amount	2% p.a.
SBI Pension	Processing fee waived off till 31 January 2022	-	-
Pre-approved personal loan	At the discretion of the bank	-	-
SBI Quick Personal Loan	1.5% of the loan amount	3% on the prepaid amount	2% p.m.
Xpress Bandhan	1% of the loan amount	-	-
SBI Kavach Personal Loan	-	-	-

Note: The fees mentioned above are subject to the discretion of the Bank.

Documents Required for SBI Personal Loan

The documents required for SBI personal loan are given below:

• Two passport-size photographs.
• Documents such as PAN card, driving license, aadhaar card, passport and voter ID card verifying the applicant's identity proof.
• Documents such as utility bills, ration cards, passports, voter ID cards, landline bills, and electricity bills can be produced to authenticate the address proof.
• Documents such as the bank statement for the last six months, salary slip, and ITR return for the past two years can be submitted for income proof.
• Other documents may include a check-off letter from your employer.

How does the EMI Calculation Work for SBI Personal Loans?

You can employ the various SBI personal loan EMI calculators available online to compute the monthly EMIs on the personal loan. The calculator gives the user an accurate result by taking into account crucial parameters, which are the principal amount, interest rate, and tenure. However, if someone is determined to figure out their EMIs manually, they can apply the formula below.

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Here, "EMI" is for Equated Monthly Instalments, "N" stands for the number of monthly instalments, "P" stands for the loan's principal, and "R" stands for the interest rate.

How SBI Compares with Other Lenders?

Opting for a perfect bank to assist with your personal loan requirements is tedious. So, we have researched on your behalf and drawn up a table comparing SBI personal loans with other banks.

Banks	Interest Rate	Processing Fee	Foreclosure Charges	Late Payment Fee
SBI	9.60% p.a. onwards	Up to 1.5% + GST	3% of the outstanding loan amount	2% of the overdue amount
HDFC Bank	10.50% p.a. onwards	2.5% + GST	2% to 4% of the outstanding loan amount	2% of the overdue amount
Axis Bank	12% p.a. onwards	At the discretion of the bank	2% -5%	2% of the overdue amount per month
Citibank	9.99% onwards	Up to 2.5% of the loan amount	Up to 4% of the outstanding principal amount	No late payment charges

SBI Personal Loan Customer Care Number

Get speedy approval and instant disbursement with little documentation through SBI personal loan, whether for your wedding or a trip, an unexpected emergency or a planned purchase.

For further information or in case of any queries, one can dial the customer care number at 1800-11-2211. For a callback, leave a missed call at 7208933142 or send a text message with the keyword "PERSONAL" to 7208933145.