State Bank of India vs Punjab National Bank Personal Loan Comparison

PNB Bank vs SBI personal loan overview

SBI and PNB provide various loan offers for specific groups of individuals. While PNB has specific offers for self-employed borrowers, as well as salaried and pensioners, SBI has designed personal loan offers for salaried employees, government employees, defence personnel, pensioners, etc. Loan seekers must note that both banks levy different processing fees, interest rates, etc, and have their distinct eligibility criteria for each target group of applicants. A PNB vs SBI personal loan comparison can greatly benefit loan applicants.

PNB Bank vs SBI personal loan comparison

Here is a SBI vs PNB personal loan comparison table based on key factors:

Parameters	SBI	PNB
Maximum and minimum loan amount	Maximum up to ₹50 lakh and minimum up to ₹1 lakh	Maximum up to ₹20 lakh and Minimum up to ₹25,000
Personal loan tenure	6 months to 7 years	5-7 years
Interest rate	10.05% – 15.05%  per annum	10.25% – 16.80% per annum
Repo-linked lending rate	10.05% p.a.	8.00% p.a.
Processing fees and charges	0.75% up to 1.5% of the loan amount (Rs 1,000 to Rs 15,000)	Up to 1% on the loan amount (₹270 for loans up to ₹2 lakh and ₹450 for loans above ₹2 lakh)
Prepayment charges	Up to 2% of the prepaid amount	NIL
Foreclosure charges	3%-2%	NIL
Monthly income/salary	₹20,000 for government/ defence-sector employees ₹25,000 for corporate sector employees	₹25,000 (minimum gross annual income of ₹6 lakh for the last two years)
Age criteria	21 to 60 years	21 and 60 years
Employment type	Salaried individuals (govt/defence and corporate employees), self-employed individuals, retirees, etc.	Salaried individuals (govt/defence and corporate employees), self-employed individuals and pensioners
CIBIL Score	650 (for defence and government employees); 670-700 for other applicants	750 and above
Approval time	2 to 7 working days	3 to 7 working days

 

PNB Bank vs SBI personal loan EMI comparison table

The following table shows the SBI vs PNB personal loan EMI table comparison for different loan amounts:

Principal amount	Bank	Interest rate	Total interest	Total amount	Tenure	Monthly EMI
₹2,00,000	SBI	10.05%	₹55,260	₹2,55,260	5 years	₹4,254
	PNB	10.25%	₹56,443	₹2,56,443		₹4,274
₹5,00,000	SBI	10.05%	₹1,38,150	₹6,38,150	5 years	₹10,636
	PNB	10.25%	₹1,41,108	₹6,41,108		₹10,685
₹10,00,000	SBI	10.05%	₹2,76,299	₹12,76,299	5 years	₹21,272
	PNB	10.25%	₹2,82,216	₹12,82,216		₹21,370

The EMI consists of two components – the principal amount and the interest amount. Loan borrowers should note that EMIs have a higher interest component in the initial years. However, it decreases later as the share of the principal component becomes bigger in the EMI amount.

Lenders calculate EMI using the following formula:

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

In this equation,

• P is the principal loan amount
• R is the interest rate offered by the bank
• N is the tenure of the loan

Now, let us take an example of SBI vs PNB personal loan EMI comparison:

EMI for a ₹2 lakh personal loan from SBI vs PNB

For a personal loan from SBI Bank, the following is the EMI calculation:

• P = 2,00,000
• N = 5 years or 60 months
• R is 10.05% or 10.05/12 × 100 (monthly) = 0.008375

EMI = 2,00,000 x 0.008375 x (1+0.008375)^60] / [(1+0.008375)^60 – 1] = ₹4254

For a personal loan from PNB, the following is the EMI calculation:

P = 2,00,000

N = 5 years or 60 months

R is 10.25% or 10.25/ 12 X 100 = 0.008541

EMI = 2,00,000 x 0.008541 x (1+0.008541)^60] / [(1+0.008541)^60 – 1] = ₹4,274

PNB Bank vs SBI personal loan eligibility and documents comparison

The eligibility criteria to get a personal loan from SBI and PNB vary slightly depending on the specific loan scheme. Here are the key eligibility criteria applicants should fulfil:

• Age: Both SBI and Punjab National Bank have set a minimum age limit of 21 years and a maximum of 60 years for personal loans.
• Income: To get a personal loan from SBI or PNB, an applicant should earn at least ₹25,000 per month. However, SBI offers some flexibility for government/defence sector employees by keeping the income limit to ₹20,000.
• CIBIL score: Most banks, including PNB and SBI, prefer a minimum credit score of 700 or above to qualify for a personal loan.
• Employment type: PNB and SBI cater to people from different employment backgrounds. These include employees working in the government/defence sector and the corporate sector, self-employed individuals and pensioners.
• Debt-to-income ratio: This is an important factor that lenders check when sanctioning loans. The total monthly deductions should be 35-40% of the applicant’s net monthly income.

SBI personal loan vs PNB personal loan application processes are nearly the same, as they involve basic KYC and paperwork. Here is the broad set of documents required:

• Duly filled and signed application form
• Photographs of the applicant (co-applicant also, if any)
• Identify proofs such as Aadhaar card, PAN Card and Passport
• Address proofs such as Aadhaar card, Voter ID card, Passport, driving license, etc.
• Income proof such as recent six months’ salary slips, bank statement, Form 16 and ITR
• KYC documents (Identity and address proofs) of the co-applicant or guarantor