SBI Personal Loan Interest Rate

What Is the Interest Rate for SBI Personal Loans?

SBI offers personal loans at competitive interest rates starting from 10.05% p.a. onwards. The exact interest rate depends on the applicant’s eligibility, income, credit score, loan amount, and tenure. The bank offers attractive interest rates to customers with high credit scores and stable incomes. SBI regularly revises its personal loan interest rates based on the RBI’s repo rate and market conditions.

SBI Current Interest Rate

The current interest rate on personal loans offered by SBI ranges from 10.05% to 15.05% p.a. Check the key details on SBI Personal Loans, including the interest rate and other charges:

Particulars	Details
Loan Limit	₹ 1,00,000 (Minimum Amount) ₹ 35 Lakhs (Maximum Amount)
Minimum Salary	₹ 20,000 (Defence & Government Sector) ₹ 25,000 (Corporate Sector)
Interest Rate	10.05% – 15.05%p.a.
Processing Fee	Up to 1.50% + GST (Varies by Scheme)
Loan Amount Disbursal	2 to 7 Working Days
Repayment Tenure	6 Months to 6 Years
Prepayment/Foreclosure Fee	2% on Prepaid Amount
Penal Charges	2% on Overdue EMIs

SBI Personal Loan Interest Rate by Schemes

Here is the interest rate of SBI for personal loans under different schemes:

SBI Personal Loan Schemes	Interest Rate (p.a.)
Standard Personal Loan	10.05% – 15.05% p.a.
Defence/Para-Military/Indian Coast Guards	10.50% p.a.
SBI Pension Loan	11.35% p.a.
Jai Jawan Pension Loan	11.35% p.a.
Pre-approved Pension Loans	11.35% p.a.

How SBI Determines Interest Rate on Personal Loans?

The interest rate for SBI’s personal loans is not fixed for everyone. The actual interest rate depends on both the bank’s policies and the borrower’s profile. Here’s how SBI determines the interest rate for different personal loan applications:

Benchmark Linking

SBI determines personal loan interest rates based on the 2-year MCLR (Marginal Cost of Funds Based Lending Rate). MCLR is the base interest rate charged by the bank. The spread is added over this base to calculate your effective interest rate. Then, an additional percentage (spread) is added based on the credit profile, employment, and the risk involved in the application.

• SBI Benchmark: 2-year MCLR @ 8.80%
• Spread:25% to 6.25%
• Effective Interest Rate:05% – 15.05%

Higher spreads apply to borrowers with lower credit scores or riskier profiles.

Borrower Profile

The major factors that affect SBI Personal Loan Interest Rate include:

• CIBIL/ Credit Score: A better credit score means a lower interest rate.
• Employment Type: Government/PSU employees often get relaxed interest rates.
• Salary Account with SBI: May help secure better pricing.
• Existing Banking Relationship: Loyal or long‑term customers benefit.

SBI Personal Loan Interest Rate vs Other Banks

Here is a comparison of the interest rate charged on personal loans by SBI along with other major banks in India:

Bank	Interest Rate	Loan Tenure	Processing Fee
SBI	10.05% – 15.05%	Up to 6 years	Up to 1.5%
HDFC Bank	10.9% – 24%	Up to 5 years	Up to 2.5%
ICICI Bank	10.45% – 16.5%	Up to 5 years	Up to 2%
Axis Bank	9.5% – 21.55%	Up to 7 years	Up to 2%
Kotak Mahindra Bank	10.99%	Up to 6 years	Up to 5%

What are the Factors Affecting SBI Personal Loan Interest Rates?

When processing personal loans, the bank considers several factors to determine whether the applicant is eligible for the loan amount and the interest rate offered. Applicants can negotiate the loan amount and interest rate with the bank based on specific factors that enhance their credibility with the bank.

Here are the key factors affecting the State Bank of India’s personal loan interest rate:

• Credit Score: Applicants with higher credit scores (750 or higher) qualify for personal loans at lower interest rates.
• Employment Type: Government, PSU, and reputed corporate employees get better interest rates than private or self-employed individuals.
• Income Level & Stability: Higher, stable income improves repayment capacity and can help secure lower interest rates.
• Loan Amount: Larger loan amounts may have slightly higher rates due to increased risk.
• Loan Tenure: Longer repayment tenures lead to higher total interest rates.
• Existing Relationship with SBI: Salary account holders or long-term customers are preferred and offered better rates.
• Repayment History: A strong past repayment record with SBI or other lenders positively impacts the interest rate.

How to Get the Lowest Interest Rate on an SBI Personal Loan?

Here are a few tips to get a lower interest rate on an SBI Personal Loan:

• Maintain a High Credit Score: A CIBIL score of 750 or above can help you qualify for a lower interest rate.
• Keep a Salary Account with SBI: Existing SBI customers, especially salary account holders, usually get preferential pricing.
• Keep a Check on SBI’s Festive Offers: SBI offers special interest rate concessions during festive seasons. Keep an eye out for such offers to get the lowest interest rate on personal loans.
• Choose a Shorter Loan Tenure: A shorter repayment tenure reduces the bank’s risk and may lower the interest rate.
• Apply as a Salaried or Government Employee: SBI offers better interest rates to government, PSU, and salaried employees of reputed organisations.
• Avoid Multiple Loan Applications: Too many loan applications or enquiries can reduce your credit score and may lead to a higher credit score.
• Opt for Pre-approved Loans: SBI’s online personal loan interest rates are usually lower, and approvals are faster.
• Maintain a Clean Repayment History: Timely EMI payments on existing loans help to improve your credit profile and relationship with the bank.