SBI Festival Loan

SBI Festival Loan

Overview

Festivals are an integral part of the Indian society. With so many different cultures existing in our country, festivals are celebrated fervently all year round. As time passes by, celebrations are becoming more expensive than ever. Family time and harmonious togetherness should not be compromised because of lack of funds. State Bank of India (SBI) offers Festival Loan to ensure that festivals are celebrated in its right colours. This product is specifically designed to meet any festival related expenditures. SBI Festival Loan is a type of personal loan and is offered like any other loan with certain eligibility requirements and other basic criteria. More details on the product can be read below.

SBI Festival Loan – Features & Benefits

SBI Festival Loan is designed to meet the expenses of a festival celebrations. The main features and benefits of this loan are:

• SBI Festival Loan is offered at competitive interest rates. However, this depends on the loan amount and tenure of the loan.
• The processing charges for the loan are very low. It is charged at 1% of the loan amount plus applicable service tax.
• There are no hidden costs or administrative charges in this loan.
• If the bank is convinced of your repayment capacity, there is no requirement for a collateral.
• State Bank of India offers this loan with minimal documentation.
• There are no prepayment or foreclosure charges on SBI Festival Loan if the individual’s account is closed from the proceeds of a new loan account opened under the same scheme.
• In case EMIs are prepaid in full or part and there is closure of account before the end of the loan term, prepayment charges of 3% is applicable on the prepaid amount.
• There is no margin applicable on this loan.

SBI Festival Loan – Eligibility Criteria

State Bank of India has clearly laid out the eligibility criteria for taking the festival loan. One can calculate the indicative EMI with the help of the EMI calculator available on the website. The eligibility criteria will help the application process to be smooth and hassle-free. The basic requirements to apply for SBI Festival Loan are:

• You should be earning a minimum net monthly income of Rs. 3000 and above.
• Your spouse’s income can be clubbed with yours to calculate the loan amount. In this case, he/she should guarantee the loan since it is taken on a joint basis.
• The applicant can be an employee of Government, PSUs, public/private limited companies/ institutions with a minimum of 2 years’ service OR
• A self-employed individual with a minimum of 3 years standing/experience OR
• An individual having a regular source of income from verifiable sources like Pension and interest from TDRs/NSCs/Government Securities.
• Minimum loan amount is Rs. 5,000.
• Maximum loan amount is Rs. 4 times your net monthly income subject to a maximum amount of Rs. 50,000.

SBI Festival Loan – Documents Required

The documents required to be submitted along with the application form for SBI Festival Loan are:

• Passport size photograph
• Proof of official address for professionals and self-employed individuals. This also includes shops and establishments certificate, lease deed or telephone bill.
• Latest salary slips and Form 16 for salaried applicants
• IT returns for the last two years for self-employed individuals and professionals

How to apply for SBI Festival Loan?

While there are many ways to apply for SBI Festival Loan, the easiest and fastest way is online. One can apply on SBI website for this type of personal loan, upload the required documents and track the application status. Before applying, it is helpful to use the EMI calculator on the website to understand the estimated amount of outflow. This can be done by entering the principal amount of loan and the intended duration of the loan. This helps in better planning for loan repayment. SBI also offers round the clock customer service through their dedicated team. They can help you with the details of the loan and guide through the application process. SBI has one of the largest networks of bank branches in the country. You can visit the nearest branch to apply for a loan in-person.

FAQs: SBI Festival Loan