SBI Personal Loan

State Bank of India, India’s largest public sector banking entity, offers personal loans for various cash requirements faced by individuals in their day-to-day lives. Personal loans offered by SBI are one the most preferred choices amongst borrowers because of the attractive interest rates and low processing charges plus you get seasonal offers from time to time, which can further decrease the EMI payable on the amount borrowed. A borrower can apply for a State Bank of India personal loan without requiring any kind of security or collateral. An individual can get a loan of up to 12 times of his net monthly income when applying either online or at a bank branch. After the submission of necessary documents, a SBI personal loan can approved with 2-3 days provided all required documentation is in order. There are a range of personal loan products offered by SBI for different needs be it for business expansion, debt consolidation, a foreign trip, marriage, home renovation, emergency medical expenses or others.

State Bank of India personal loan is among the top choices in India because of:

• Transparent loan sanctioning procedure
• Attractive interest rates on various types of personal loans
• Minimal processing fees and no hidden charges
• Loan tenure ranging from 1 to 5 years
• Online Applications accepted for sanctioning the personal loan
• Dedicated round the clock customer care for personal loan customer
• Multiple personal loan options depending on customer requirement

• SBI offers a high amount as personal loan
• Some of the lowest rate of interest offered
• Fast disbursal and approval of loan
• Specific loan schemes for every borrower
• Wide network of operation enables loan applications at almost every location in India

*The above information is indicative and liable to periodic change

Being India’s leading public sector bank, State Bank of India provides its customers with the option of various types of personal loans based on their unique requirements. The personal loan types provided by SBI can vary on the basis of key criteria such as income level, loan amount, loan tenure, profession of the prospective borrower and many other factors.

This loan is available instantly for those with urgent cash requirements like a medical emergency. The features and benefits of the loan are as follows:

• Interest is charged on the daily reducing balance. Moreover, interest rates are low and so affordable to the borrower to make the repayments
• A very low processing charge of 1.01% of the amount is charged for processing the loan
• Complete transparency in granting the loan. It means that there are zero hidden charges, reasonable processing fees and complete clarity on the loan process with up-to-date information about loan application status at each stage. So when you avail a loan, you can rest assured that there are no hidden charges which may burn a hole in your pocket and which are not informed to the customer at the time of loan application
• No guarantor / security / collateral required. A guarantor is someone who guarantees to pay the loan himself/herself if the applicant fails to repay the loan himself. Under the personal loan from State Bank of India scheme, the bank does not ask for any guarantor who should undertake to guarantee the loan repayment. A security or collateral is an asset against which loan is issued and in case of failure to repay the SBI personal loan, the bank has the power to possess the asset and sell it off to meet the outstanding loan amount. However, SBI, under its SBI Personal Loans Scheme goes easy on the customer and does not demand any security or collateral for issuing the loan and the loan is given hassle-free.
• The customer can pre-pay the loan anytime whenever he has surplus cash without worrying about any pre-payment charges. The bank does not charge any charges on pre-payment of the loan.
• The personal loans from SBI is available in two forms – either as Term Loans or as Overdraft Limit on the existing account
• The loan is available for a minimum amount of Rs.24, 000 and a maximum amount of 24 times the Net Monthly Income subject to a limit of 15 lakhs under the Term Loan facility. For the overdraft facility, the loan amount ranges from 10 lakhs which is the minimum value to 24 times the Net Monthly Income subject to a maximum of Rs.15 lakhs
• The SBI personal loans amount for teachers is limited to 12 months Gross salary under both the Term and Overdraft Loan options
• The loan is to be repaid within 6-60 months. Thus the individual who avails the loan needs to make sure that the EMI payments will start after 6 months of availing the loan and has to calculate EMI for SBI personal loan correctly and pay it within 5 years. The maximum limit of 60 months is subject to the residual service clause wherein the maximum term will be lower of the number of years of active work or 60 months.
• A second Xpress loan can be availed by the borrower 12 months after availing the first loan if the repayments are made regularly without default for the first loan. However, the customer cannot avail any further loans in excess of 2 loans
• There is no penal interest for loans up to Rs.25, 000. For loans above Rs.25, 000, a penal interest of 2% per annum will be charged on the overdue amount for the default period if the EMI is not paid for more than 1 month. In case the EMI is partly paid, no penal interest will be charged.

SBI Xpress Credit Interest Rate:

*Rates are subject to periodic change

Eligibility Criteria:

The employees of the following bodies who have a salary account with SBI can apply for a SBI personal loan facility:

• Central and State Government
• Quasi Government
• Central PSUs
• Profit making State PSUs
• Educational Institutions of National repute
• Selected companies.

The income required for SBI personal loan is minimum Net Monthly Income of Rs.7500 and the ratio of Net Monthly Income (NMI) to Equated Monthly Installments (EMI) should not exceed 50%.

It is another kind of loan offered by SBI with the following features and benefits:

• The loan is available for any cash requirement faced by the individual like taking a vacation, marriage, house renovation, etc.
• The loan amount depends on the customer’s income and repayment capacity. However, the minimum amount of loan is Rs.24, 000 in metro and urban centers and Rs.10, 000 in rural and semi-urban areas.
• The maximum SBI personal loan amount eligibility is 12 times the Net Monthly Income for salaried individuals and pensioners up to a maximum limit of Rs.10 lakhs
• The repayment tenure of the loan is 4 years which means that the customer is required to pay-off the loan EMI in 48 Equated Monthly Installments.
• There is pre-payment facility in the SBI personal loan. The customer can pre-pay the loan in the form of greater EMI without any additional charges levied for pre-payment.
• The SBI Saral loan is unsecured, hence no guarantor or collateral is required as part of the loan eligibility process. In case there is a guarantor, if the loan applicant is unable or unwilling to repay the loan amount due, then the guarantor is liable to make the necessary payments to the bank. In case of collateral, non-repayment of the loan entitles the bank to auction off the asset held as collateral to pay off the outstanding amount.
• The processing charge is 2.0% to 3.0% of the outstanding amount of loan.

SBI Saral Interest Rate:

The interest charged on Saral Loan is 3.80% above the 2 yr MCLR equal to an interest rate of 17.65% per annum.

Eligibility Criteria:

A salaried individual employed in a good corporate company or a self-employed person or professionals like doctors, engineers, architects, chartered accountants and MBAs with a minimum of 2 years standing if meet the SBI personal loan eligibility then can apply for the loan.

Documents Required:

The document requirements for personal loans for existing account holders of the bank is a passport sized photograph. For salaried employees, the latest Form 16 is required to be submitted.

• Purpose of the SBI Personal Loan: The personal loan is granted to the borrower to meet the expenses like marriage, medical treatment, education, foreign travel or any other general purpose other than any speculative activities.
• Eligibility for the SBI Personal Loan: The eligibility required for the SBI personal loan is that the borrower should be salaried employee, pensioners of central/state government/armed forces, self employed, businessmen and pensioners with regular source of income.
• Rate of interest: The rate of interest for the SBI personal loan can be calculated in two different manner:
  1. Floating rate of interest: The interest on the loan is charged at the prevailing 1 year MCLR on a daily reducing balance at monthly rests. The rate of interest can be reset subject to 1 year of disbursement of the loan. Bank has an option of reducing or increasing the EMI amount or the repayment period or both can be done if there is any change or revision in the interest
  2. Fixed rate of interest: Interest loan under this method will be charged at the prevailing 2 year MCLR as on the date of sanction on a reducing balance with the monthly rests. The rate of interest remains unchanged in the entire period of loan.
  3. Interest rate on the personal loan against the term deposits {except against FCNR} is @1% above the relative term deposit rate.
  4. Calculation of the rate of interest on the loan: The interest on the loan is calculated on the prevailing rate of interest per annum on daily reducing balance with monthly rests.

• Intimation of change in interest rate: the borrower of the SBI personal loan is deemed to have the notice of any change in interest rate whenever there is a change in MCLR or increase in the interest rate. If there is no change in the rate of interest the same should be displayed on the notice boards of the branch and can be informed through newspaper etc. the rate of interest can also be known when the interest is updated on the passbook. If there is any change in the interest rate then the customer is required to pay such revised interest amount.
• Mode of Repayment of loan: the mode of repayment available to the borrower from the bank is that he can pay through check-off facility, post dated cheques for the repayment period given or through SUI from the borrower’s salary account or pension account in the State Bank of India..
• Margin: the margin money set by the bank which the customer is required to pay from his side but for the personal loans which includes SBI SARAL PERSONAL LOAN, XPRESS CREDIT, FESTIVAL LOANS, PENSION LOANS AND BHAGYA REKHA the margin set is NIL.
• Processing fees for the SBI personal loan: The processing fees for different personal loans is charged differently:
  1. The processing fee for Xpress credit loan is @1% of the loan amount.
  2. The processing fee for SBI SARAL loan is @ 2%-3% of the loan amount.
  3. The processing fee for Festival loan is @1% of the loan amount.
  4. The processing fee for SBI Pension loan is @0.50% of the loan amount minimum of which is Rs.500.
  5. Bounced cheques/ECS or SI dishonor.
  6. A penalty of Rs.500/-+ applicable service tax will be charged by the bank for every bounced cheques or ECS and SI dishonours. The rate may vary from time to time. In the case of bouncing of cheques the bank will take the legal action under section 138 of the Negotiable Instrument Act of 1881.

• Repayment of the SBI Personal Loan: the loan taken by the borrower has to be repaid in the Equated monthly installments or EMI’s over the term of the loan period or in the lump sum amount at the end of the tenure of the personal loan as stated in the loan agreement. The liability to the bank will only be over when the loan account of the borrower becomes NIL on payment of the residual amount of the loan.
• Pre-Closure charges:
  1. Under floating rate of interest: In this scheme no Pre-closure charges or penalty is taken by the bank.
  2. Under Fixed rate of Interest:
     1. If the borrower is making a pre-payment of EMI’s in full or in part and closing the loan account before the loan tenure then the penalty @3% will be charged on the pre paid amount of loan.
     2. If the borrower is making a full pre payment of the loan from the proceeds of the new loan which he has taken from the bank under the same scheme then no pre payment charges are taken.

• Other Fees and Charges: The other fees and charges applicable on the personal loan are as follows :
  1. The fees collected for the payment of the empanelled Advocate or value for any legal opinion, search report and valuation fee is charged as per actual amount paid.
  2. Any other fees as required are also taken as actual.

• Default: In case of default in paying the due amount on the due date, the customers are sent reminders from time to time for the payment of the outstanding loan amount through post, fax, SMS, telephone or e-mail. The third party can also be appointed for the collection of the due amount. The collecting agency has to follow the Indian Bank’s Association (IBA) rules and regulations and the code of conduct on debt collection process.
• Security: The security required for the SBI personal loan is as per the SCHEME of the bank as stated.
• Insurance: the insurance is also as per the scheme of the SBI bank.
• Penal Interest: The penal interest is not charged for the loan amount up to Rs.25000. for all the loans above Rs.25000, if there is irregularity in the payment of EMI’s for a period of month or so then the penal interest rate @ 2% p.a. will be charged over and above the applicable rate of interest on the overdue amount for the period for which the borrower has not paid the installment amount. If the part EMI or the part installment remains unpaid then the penal interest in not charged.
• Timeline for Disposal of loan Application: The SBI personal loan in metro cities is disposed in 3 days and for other semi-urban and rural areas it takes 2-3 days for disposal. The timeline starts from the date of receipt of complete documents by the bank from the applicant. The time taken by the applicant for submitting the details as required by the bank will not be considered in calculating the timeline. The timeline period will be based on the full working days. If there is a requirement for SBI personal loan verification to be done through govt. bodies across many centers then additional 15 working days will be applicable.
• Customer Service: In case you have any issues with your credit card, you can reach the customer service department directly over the phone or contact the SBI grievance cell through their customer services portal. In case you are dissatisfied with the initial response to your grievance, you can escalate to the Deputy General Manager (Customer Service) in order to get the issue resolved.

SBI offers personal loan to meet festival related expenses faced by an individual. The benefits and features of SBI personal loan are as follows:

• Very low interest rates compared to the rates charged by other banks and financial institutions making the loan extremely affordable to the borrower.
• A very low processing charge of 1.10% of the amount is charged for processing the loan.
• SBI’s loan approval process is extremely transparent and all upfront charges are informed to you in the loan agreement provided to you before the loan is disbursed to you. The bank would also keep you informed every step of the way regarding you loan application status.
• SBI Personal Loan is an unsecured signature loan, therefore, no collateral or guarantor is required and the documentation requirement for a personal loan from SBI is also minimal.
• In case of no check-off, the personal guarantee of the spouse or any other person whose worth matches the SBI personal loan amount is required.
• Minimal documentation is required and the customer is not harassed with a long list of documents to be submitted.
• There is no pre-payment penalty in the loan. The customer can pre-pay the loan in the form of greater EMI without any additional charges levied for pre-payment.
• The repayment period is 12 months or 1 year which means that the customer should pay back the SBI personal loan within the stipulated term.
• The SBI personal loan amount depends on the income and repayment capacity of the borrower. The minimum amount of loan available is Rs.5000 and the maximum amount is equal to 4 times the Net Monthly Income of the borrower subject to a limit of Rs.50, 000.

SBI Festival Interest Rate:

The interest rate for personal loans is 6.65% above 2 year MCLR making the rate of interest 15.90% per annum.

Eligibility Criteria:

The following individuals are eligible for a SBI Festival Loan:

• An employee of the Government, PSU, profit-making public or private limited companies or institutions, etc. with a minimum of 2 years of service can give a personal loan requests.
• Self-employed individuals who have a minimum of 3 years of work experience
• A person having a regular source of income from verifiable channels which include pensions or interest certificates from TDRs, NSCs, Government securities, etc.
• The applicant must have a net monthly income of Rs.3000 and above
• If the spouse acts as a guarantor for the SBI personal loan, his or her income will also be considered while calculating the loan amount

Documentation Required:

The following documents are required to be submitted:

• Passport sized photograph
• Proof of official address for professionals and self-employed individuals which includes shop and establishment certificate, Lease Deed or Telephone Bill
• Latest Form 16 and salary slip for salaried individuals
• IT returns of the last two financial years for self-employed individuals and professionals

• Purpose of the SBI Personal Loan: The personal loan is granted to the borrower to meet the expenses like marriage, medical treatment, education, foreign travel or any other general purpose other than any speculative activities.
• Eligibility for the SBI Personal Loan: The eligibility required for the SBI personal loan is that the borrower should be salaried employee, pensioners of central/state government/armed forces, self employed, businessmen and pensioners with regular source of income.
• Rate of interest: the rate of interest for the SBI personal loan can be calculated in two different manner:
  1. Floating rate of interest: The interest on the loan is charged at the prevailing 1 year MCLR on a daily reducing balance at monthly rests. The rate of interest can be reset subject to 1 year of disbursement of the loan. Bank has an option of reducing or increasing the EMI amount or the repayment period or both can be done if there is any change or revision in the interest
  2. Fixed rate of interest: Interest loan under this method will be charged at the prevailing 2 year MCLR as on the date of sanction on a reducing balance with the monthly rests. The rate of interest remains unchanged in the entire period of loan.
  3. Interest rate on the personal loan against the term deposits {except against FCNR} is @1% above the relative term deposit rate.
  4. Calculation of the rate of interest on the loan: The interest on the loan is calculated on the prevailing rate of interest per annum on daily reducing balance with monthly rests.

• Intimation of change in interest rate: the borrower of the SBI personal loan is deemed to have the notice of any change in interest rate whenever there is a change in MCLR or increase in the interest rate. If there is no change in the rate of interest the same should be displayed on the notice boards of the branch and can be informed through newspaper etc. the rate of interest can also be known when the interest is updated on the passbook. If there is any change in the interest rate then the customer is required to pay such revised interest amount.
• Mode of Repayment of loan: the mode of repayment available to the borrower from the bank is that he can pay through check-off facility, post dated cheques for the repayment period given or through SUI from the borrower’s salary account or pension account in the State Bank of India..
• Margin: the margin money set by the bank which the customer is required to pay from his side but for the personal loans which includes SBI SARAL PERSONAL LOAN, XPRESS CREDIT, FESTIVAL LOANS, PENSION LOANS AND BHAGYA REKHA the margin set is NIL.
• Processing fees for the SBI personal loan: The processing fees for different personal loans is charged differently:
  1. The processing fee for Xpress credit loan is @1% of the loan amount.
  2. The processing fee for SBI SARAL loan is @ 2%-3% of the loan amount.
  3. The processing fee for Festival loan is @1% of the loan amount.
  4. The processing fee for SBI Pension loan is @0.50% of the loan amount minimum of which is Rs.250.
  5. Bounced cheques/ECS or SI dishonor.
  6. A penalty of Rs.500/-+ applicable service tax will be charged by the bank for every bounced cheques or ECS and SI dishonours. The rate may vary from time to time. In the case of bouncing of cheques the bank will take the legal action under section 138 of the Negotiable Instrument Act of 1881.

• Repayment of the SBI Personal Loan: the loan taken by the borrower has to be repaid in the Equated monthly installments or EMI’s over the term of the loan period or in the lump sum amount at the end of the tenure of the personal loan as stated in the loan agreement. The liability to the bank will only be over when the loan account of the borrower becomes NIL on payment of the residual amount of the loan.
• Pre-Closure charges:
  1. Under floating rate of interest: In this scheme no Pre-closure charges or penalty is taken by the bank.
  2. Under Fixed rate of Interest:
     1. If the borrower is making a pre-payment of EMI’s in full or in part and closing the loan account before the loan tenure then the penalty @3% will be charged on the pre paid amount of loan.
     2. If the borrower is making a full pre payment of the loan from the proceeds of the new loan which he has taken from the bank under the same scheme then no pre payment charges are taken.

• Other Fees and Charges: The other fees and charges applicable on the personal loan are as follows :
  1. The fees collected for the payment of the empanelled Advocate or value for any legal opinion, search report and valuation fee is charged as per actual amount paid.
  2. Any other fees as required are also taken as actual.

• Default: In case of default in paying the due amount on the due date, the customers are sent reminders from time to time for the payment of the outstanding loan amount through post, fax, SMS, telephone or e-mail. The third party can also be appointed for the collection of the due amount. The collecting agency has to follow the Indian Bank’s Association (IBA) rules and regulations and the code of conduct on debt collection process.
• Security: The security required for the SBI personal loan is as per the SCHEME of the bank as stated.
• Insurance: the insurance is also as per the scheme of the SBI bank.
• Penal Interest: The penal interest is not charged for the loan amount up to Rs.25000. for all the loans above RS.25000, if there is irregularity in the payment of EMI’s for a period of month or so then the penal interest rate @ 2% p.a. will be charged over and above the applicable rate of interest on the overdue amount for the period for which the borrower has not paid the installment amount. If the part EMI or the part installment remains unpaid then the penal interest in not charged.
• Timeline for Disposal of loan Application: The SBI personal loan in metro cities is disposed in 3 days and for other semi-urban and rural areas it takes 2-3 days for disposal. The timeline starts from the date of receipt of complete documents by the bank from the applicant. The time taken by the applicant for submitting the details as required by the bank will not be considered in calculating the timeline. The timeline period will be based on the full working days. If there is a requirement for SBI personal loan verification to be done through govt. bodies across many centers then additional 15 working days will be applicable.
• Customer Service: In case you have any issues with your credit card, you can reach the customer service department directly over the phone or contact the SBI grievance cell through their customer services portal. In case you are dissatisfied with the initial response to your grievance, you can escalate to the Deputy General Manager (Customer Service) in order to get the issue resolved.

In keeping with the rising trend of online transactions, the Paisabazar.com offers SBI Personal Loan online application through its website. The process is simple. You can log on to our web portal and use our Personal Loan Eligibility tool to input key details about yourself such as income level, demographics (age, name, occupation), etc. Based on these data, our eligibility tool will provide you with a list of options that would include the SBI personal loan option along with the applicable interest rate, tenure and other criteria. You can complete the online application process within minutes and then your application is forwarded to SBI for further processing. Various supporting documents will be required during the later stage of the loan approval process after it is sent to the bank.

EMI or equated monthly installments are the amounts that you need to pay every month in order to pay off your personal loan. Though you can always calculate your EMI by hand, it is much easier to use a personal loan EMI calculator in order to estimate your monthly EMI payouts. Do the following after logging on to the Paisabazaar.com website in order to estimate your loan repayments:
• Go to the tools section of the website and click on the personal loan EMI calculator link
• On the Personal Loan EMI calculator page, use the sliders or input the key data such as the loan principal amount, the applicable interest rate and the required loan tenure to get instant results
• You can adjust any of these parameters as per your requirement in order to get the desired EMI amount. 
Apart from receiving the instant results, you will also benefit from the fact that you can make an informed decision regarding how much you can take as an SBI personal loan and afford the associated EMI payouts.