Apply for Personal Loan Starting From 10.25%*State Bank of India offers personal loans of up to Rs. 20 lakh to both salaried individuals and pensioners. The interest rate for SBI personal loan starts from 9.60% and varies across the types of loans. Let us discuss key aspects of SBI personal loan interest rate including rates for various types of personal loans, the method of interest calculation and factors affecting the interest rate.
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Interest Rates for SBI Personal Loan Schemes
State Bank of India offers a wide range of personal loan variants suited to the requirements of various groups of individuals. Currently, the interest rate starts from 9.60%. Let us check the interest rate for all available schemes:
| Loan Type | Variant | Interest Rate | |
| Xpress Credit (including PAXC-Pre-Approved Xpress Credit) | |||
| Defence/ Para-Military/ Indian Coast Guard Salary Package Applicants | Term | 10.60% – 11.10% | |
| Overdraft | 11.10% – 11.60% | ||
| Other Applicants | Term | 10.60% – 12.60% | |
| Overdraft | 11.10% – 13.10% | ||
| Concession | Loan amount >= Rs. 10,00,000 | 0.5% in ROI | |
| Platinum Salary Package customers | 0.5% in ROI | ||
| Central Public Sector Enterprises (CPSEs) Considered Under ‘RATNA’ Status | 0.5% in ROI | ||
Xpress Elite Scheme
| Loan Type | Variant | Interest Rate |
| Salaried Class | SBI Salary account holders | 9.60% – 11.10% |
| Non SBI Salary Package account holders | 9.85%-11.35% |
Xpress Credit- Non-Permanent Employees (NPES)
| Loan Type | Variant | Interest Rate |
| Salaried Class | Central and State Government, Central PSUs, State PSUs, Defence personnel and Educational Institutions of National Repute | 11.50% – 13.60% |
| Co-operatives/institutions not covered under regular Xpress Credit loan scheme and unrated corporates | 12.25% – 13.85% |
Note: The above mentioned interest rates may change and shall depend on the sole discretion of the SBI and RBI. Interest rates are updated as on 2nd Dec 2021.
Interest Rates for Other SBI Personal Loans
The following are the interest rates applicable in case a borrower opts for any other type of personal loan from SBI:
| Type of Loan | Interest Rate |
| SBI Pension Loan (including PAPNL i.e. Pre-Approved Pension Loans) | 9.75%-10.25% |
| Clean Overdraft | 15.65% |
| Xpress Credit Insta Top-up | 10.70% |
| Pre-Approved Personal Loans (PAPL) | 12.60% |
| Special Pre-Approved Personal Loan | 9.60% |
| SBI Quick Personal Loan through CLP Portal | 10.85%-12.85% |
Note: The above mentioned interest rates may change and shall depend on the sole discretion of SBI and RBI.
SBI Personal Loan Balance Transfer Interest Rates
Personal Loan Balance Transfer refers to a process using which you can transfer the outstanding amount of your ongoing loan with Bank A to Bank B and save on the overall interest payout.
SBI also offers this facility to transfer your personal loan balance with some other banks to get better terms and interest rate. It is noteworthy that the interest rate in this case is not fixed, and depends on the individual applicant’s profile.
Also Check: List of Other Banks Offering Personal Loan Balance Transfer
5 Factors that Affect Personal Loan Interest Rate
The following are some of the key factors that affect the interest rate applicable to your personal loan from SBI:
1. Credit History and Score
2. Current Credit Utilization Ratio
3. Employer and Employment History
4. Income of the applicant
5. Existing relationship with SBI
Also Know: What is the CIBIL score required for SBI personal loan?
How to Get Low Interest Rates on SBI Personal Loan?
The following measures constitute the key factors affecting personal loan interest rates. Thus, bear them in mind to get the best possible interest rate for your personal loan.
- Maintain a high credit score: Credit score is a direct reflection of your repayment history for all previous loans/credit cards. It ranges between 300 and 900. Higher the score, better are the chances of getting a low interest rate on your personal loan. You can check your credit score for free at Paisabazaar.com and also get tips and tricks to maintain/improve your credit score.
- Keep credit utilization ratio low: This is the ratio of credit used by the individual to the total credit limit available. Ideally, this ratio should not exceed 30% in order to get the best personal loan offers.
- Avoid making multiple loan applications simultaneously: This may portray you as credit hungry. Every time, you apply for a loan, the lender requests for your credit report. This translates to hard enquiries which significantly affect your credit score. Hence, use Paisabazaar.com to compare multiple personal loan offers on a single platform without affecting your credit score.
- Previous relationship with the bank: This may also affect SBI personal loan interest rate. For instance, if you already have a savings account or fixed deposit in good standing with the bank, you may be able to avail the personal loan at a lower rate of interest.
- Employment History: For salaried applicants, the reputation of their employer, the duration of employment as well as the type of employment also affects the personal loan interest rate. Typically government employees with a long employment history (5 years or more) tend to get the best interest rates on their personal loans.
- Maintain low fixed obligation to income ratio (FOIR): FOIR is the ratio of EMIs on your pre-existing loans and credit card dues vs. your total income. A lower FOIR means greater repayment ability and this can significantly affect the SBI personal loan interest rate being offered.
Comparison between SBI and other Banks/NBFCs
The following table shows the comparison for SBI personal loan interest rate vs. other lenders.
| Banks/NBFCs | Interest Rates (per annum) |
| SBI | 9.60% – 13.85% |
| HDFC Bank | 10.25% – 21% |
| PNB | 7.90% – 14.50% |
| ICICI Bank | 10.50% – 19% |
| Axis Bank | 10.25% p.a. onwards |
| Kotak Mahindra Bank | 10.25% onwards |
| IndusInd Bank | 11.00% onwards |
| IDFC First Bank | 10.49% – 23% |
| Bajaj Finserv | 13.00% onwards |
| Tata Capital | 10.99% onwards |
FAQs
Q. How have personal loan interest rates been impacted after GST?
Personal loan interest rates are not affected by GST. However, charges like processing fee and prepayment penalty now attract GST at 18% as compared to a service tax of 15% applicable during the pre-GST era.
Q. Is SBI personal loan interest rate fixed or floating in nature?
SBI offers personal loan at a fixed rate of interest, linked to 2-year MCLR (marginal cost of funds-based lending rate) of the bank. No floating interest rate personal loans are currently provided by SBI.
Q. Can a higher income help me get a lower rate of interest on my SBI personal loan?
A higher level of income usually indicates greater financial stability and a lower risk of defaulting on repayments which may help you get a lower rate of interest on your SBI personal loan.
Please Note: SBI is not a Paisabazaar partner. Offers would be from partner Banks/NBFCs only.