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State Bank of India Personal Loans Eligibility Criteria - A Snapshot
State Bank of India Personal Loans Eligibility Criteria - A Snapshot | |
Interest rate | Starting from 9.60% per annum |
Loan Amount | Up to Rs. 20 Lakhs |
Income Eligibility | Rs. 15,000 per month |
Age Eligibility | Minimum of 21 years and up to 58 years at the time of loan maturity |
Repayment Tenure | Up to 72 months |
Overview of Personal Loans from SBI
A personal loan is a form of financial assistance, offered by various banks and NBFCs, which can be utilised for personal needs like medical emergencies, higher education, marriage expenses, vacation plans and many more.
The State Bank of India, the largest banking entity in our country, provides customers with specially tailored personal loans. These personal loans are a huge benefit to customers when they are in immediate need of funds. SBI offers personal loans to its clients with various forms of uses. Users may learn from the SBI website the characteristics of these loans and refer to the plan that fits their needs better.
SBI provides one of the lowest personal loan interest rates. You get interests based on daily reduction balance, which significantly reduces your interest burden.
SBI personal loan can be availed either as a Term loan or an Overdraft facility. Individuals can opt the mode of loan disbursal to suit their needs.
Apart from a competitive rate of interest, SBI offers periodical offers to personal loan borrowers to reduce their EMI burden. The current interest rate on personal loans from SBI ranges from 9.60% - 16.60%
Types of Personal Loans offered by SBI
SBI offers a few different kinds of Personal Loans to its customers –
- SBI Xpress Credit
- SBI Quick Personal Loan
- Loans Against Securities
- SBI Pension Loans
- Pre - Approved Personal Loans on YONO
Who is eligible to apply for personal loans from SBI?
Since there are numerous personal loan products, the eligibility criteria differ for each product. Let us have a simple snapshot of the eligibility criteria for each personal loan product.
Product Name | Income Criteria | Age Criteria | Quantum of Loan | Repayment Tenure | Other Particulars |
SBI Xpress Credit – For Individuals with Salary Account with SBI Term Loans | Minimum monthly income of Rs. 15000 | Salaried Individuals – 21 -58 years of age Self Employed Individuals – 21 – 65 years of age | Minimum Loan Amount – Rs. 25,000 Maximum Loan Amount – Rs. 20 lakhs / 24 times NMI | The minimum repayment period is 6 months and the maximum repayment period is 6 years or the remaining period of service, whichever is longer. | Prepayment charges of 3% on prepaid amount. |
SBI Xpress Credit – For Individuals with Salary Account with SBI Overdraft Facility | Minimum monthly income of Rs. 15000 | Salaried Individuals – 21 -58 years of age Self Employed Individuals – 21 – 65 years of age | Minimum Loan Amount – 5 lakhs Maximum Loan Amount – Rs. 20 lakhs / 24 times NMI | The minimum repayment period is 6 months and the maximum repayment period is 6 years or the remaining period of service, whichever is longer. | Employees working with Central/ state/ quasi government, Central PSUs and profit-making state PSUs, Educational institutions of national repute, Selected corporates with or without a relationship with the bank. |
SBI Quick Personal Loan | Minimum monthly income of Rs. 15000 | Salaried Individuals – 21 -58 years of age Self Employed Individuals – 21 – 65 years of age | Minimum: Rs. 24,000 Maximum: Rs. 20,00,000 / 24 times NMI | The minimum repayment period is 6 months and the maximum repayment period is 6 years or the remaining period of service, whichever is longer | Processing fee: 1.50% of the Loan Amount (subject to minimum ₹1000/- & maximum ₹15000/-) plus GST |
Loans Against Shares | Based on the value of the security | NA | Minimum Loan Amount: Rs 50,000 Maximum Loan: Rs 20 lakhs | Demand Loan: To be liquidated in a maximum period of 30 months Overdraft: 30 months (subject to renewal every year) | Processing Fee OD/DL: 0.75% of the loan amount + applicable GST subject to a minimum of Rs.1000 (Non-Refundable) |
Loan Against Term Deposit | Demand Loan and Overdraft Facility up to 90% of Term Deposit | NA | Min amount of Loan (For Online Overdraft against Fixed Deposit): Rs 25000 Max amount of Loan (For Online Overdraft against Fixed Deposit): Rs 5 Crore | The maximum Repayment period has been capped at 5 years against STDR/e-STDR and 3 years against TDR/e-TDR respectively for Overdraft availed online. | Zero processing charges. No prepayment penalties. |
Loan Against SBI Dual Advantage Fund | Single/Joint holder(s) of SBI DAF above 18 years of age | Minimum 18 years old | Minimum Loan Amount: Rs 25,000/- Maximum Loan: For DAF held in Demat form: Rs 20 Lakhs For DAF held in Physical form: Rs. 10 Lakhs | Overdraft facility allows multiple repayments. | The Investor(s) should have an SB account of SBI. The SB account and DAF should have an identical name and PAN number. |
Factors affecting Personal Loan Eligibility at State Bank of India
While processing your loan, the bank looks into different factors that determine the loan amount you are eligible for and the interest rate offered to you. One should note that the loan amount and interest rate can be negotiated with the banker by undertaking specific steps that will increase your credibility with the banker. Here are some points to keep in mind before applying for a personal loan:
Your credit score is a significant factor in determining your eligibility for SBI personal loans. A good credit score means that the history of repayments is good. There is a promise of a higher loan amount and lower interest rate. Banks view a higher credit score as a measure of your creditworthiness. This greatly influences the eligibility of your loan amount and interest rate.
The Loan Amount Sanctioned Depends on your Income
A higher salary ensures that the debt is repaid on time. Banks offer better lending rates to persons with higher incomes. Banks often prefer salaried workers over self-employed people because wages mean that daily cash flow is earned from the account. However, self-employed professionals especially if they can show proof of income and a stable business.
Your Age is Important Too
The age of the borrower plays an essential role during the personal loan application process. The younger the creditor, the greater the number of years he would have to repay the loan. Personal loans will be made available to people who are 21 years of age. Unlike older candidates, loan sums and interest rates are very favourable for younger-generation applicants.
Type of Employment & Employer is taken into account
Jobs with a respectable firm will get you a good price on your SBI Bank Personal Loan interest rates. Several banks have a list of approved employers and respected entities they refer to when approving a loan. Jobs in these businesses come with job security and reduce the risk borne by the banker.
Customer Loyalty Matters
Preference is often provided to banking customers with a long-term relationship, relying on the fact that their credit record is easier to access. If you are a current SBI Bank customer, the bank will verify your account history, any recent credit or credit card charges and your general financial status. Therefore, for personal loans, existing customers are granted preferential interest rates.
Inclusion of a co-applicant on the loan
You should add a co-applicant to the loan if you have another earning member of the family so that their income is also taken into account when approving your personal loan application. When the income of both the applicants is entered, it results in a higher repayment capacity, and thus a lower interest rate is the result.
Present loans and liabilities
While determining your personal loan eligibility and interest rates’ eligibility, your present debts and commitments play an essential role. If you have existing loans or other obligations, the opportunity for repayment will be reduced. For the lender, this is considered to be a high-risk scheme. It would also put further pressure on the flow of cash. An individual with very low or no current liability is a preferred candidate for any bank.
What are the documents required to apply for SBI Personal Loan?
- Income Proof: Latest Income Tax Return, Bank Account Statement of last six months, Latest month Salary Slip
- 2-passport size photographs
- KYC Documents: Proof of Identity & Proof of Address
Personal Loan Eligibility Calculator on CreditMantri
Though getting a personal loan from SBI is a cakewalk, borrowers must check the loan tenure and the monthly EMI amount. Personal loans are generally unsecured loans and hence come with a higher rate of interest. Applicants are advised to use the Personal Loan EMI calculator to determine the monthly EMI amount to determine if they can afford to make regular payments on their personal loans. Because defaulting on your loan repayments will harm your credit score and affect your future loan prospects.
A Personal Loan EMI calculator has three main components:
- The loan amount
- The interest rate
- The repayment tenure
You can enter the loan amount and the approximate interest rate in the respective fields. You then choose the repayment tenure, and the calculator will give you the approximate EMI amount.
You can adjust the loan amount, interest rate and the tenure to different values to get the corresponding EMI amount. This way, you can determine the most feasible loan amount and repayment tenure to meet your needs and repayment capacity.
FAQs – Personal Loan Eligibility – State Bank of India
1. Do I need to present some sort of security?
No security is needed to secure a personal loan.
2. Can a spouse’s income be added to avail the loan?
Yes, spouse’s income can be added provided he/she guarantees the loan or is the co-applicant.
3. What is the lowest interest rate I can get on State Bank of India Personal Loans?
As per the current market, the State Bank of India offers personal loans starting with an interest rate of 9.60%. As stated earlier, the number is determined based on various factors.
4. How can I get an instant loan from SBI?
To get an instant, pre-approved personal loan from SBI, you need to use the YONO app. Follow the steps below:
- Step 1:Log inn to the YONO app or website
- Step 2: Click on ‘Avail Now’ under Personal Loans
- Step 3: Select your preferred tenure & amount.
- Step 4: Enter the OTP sent to your mobile number.
- Step 5: The loan amount is credited to your account.
5. What is the best interest rate I can get on my SBI Personal Loan?
SBI Personal Loan interest rates start from 9.60%.
6. What is the minimum income criteria to avail a personal loan from SBI?
The minimum income of the applicant should be Rs. 15,000 per month.
7. Is there a minimum employment history requirement to avail SBI Personal Loans?
Yes, you should have been in your current employment for a minimum of 1 year to avail SBI Personal Loans.
8. How long does it take for the personal loan to be processed?
SBI usually takes 2-7 business days to process the personal loan, upon submitting the duly filled application form along with all the required documents.
9. Do I need to present security for SBI Personal Loans?
No security is needed to secure a personal loan with SBI.
10. Is there any advantage to adding my brother as my co-applicant on the personal loan application, who is an employee with a reputed MNC?
A great deal, yes. Adding a co-applicant increases the chance of your State Bank of India Personal Loan getting competitive interest rates. A reputed employer may also get extra preference for you.
11. Do I have to be an existing customer of SBI Bank to apply for the personal loan?
No, you need not be an existing customer of the bank to apply for their personal loans.
12. Is my credit score mandatory to approve my SBI personal loan?
A significant factor in assessing your eligibility for SBI personal loans is your credit score. A good credit score means that repayment history is good. A higher loan amount and lower interest rate are promised. Banks regard a greater credit score as an indicator of creditworthiness. This significantly affects the eligibility of your loan amount and interest rate.
Latest & Update Sbi Personal Loan Eligibility News
SBI Launches Collateral-free Personal Loans for Covid-19 Treatment Costs 23 Jun 2021
SBI has launched “Kavach” a personal loan scheme, especially for Covid-19 patients. The loan is unsecured and offers a maximum loan amount of Rs. 5 lakhs and comes with a maximum tenure of 60 months (5 years). The interest rate is fixed at 8.5% per a...
Read moreSBI has launched “Kavach” a personal loan scheme, especially for Covid-19 patients. The loan is unsecured and offers a maximum loan amount of Rs. 5 lakhs and comes with a maximum tenure of 60 months (5 years). The interest rate is fixed at 8.5% per annum. The biggest draw of this loan facility is that it comes with a three-month moratorium, during which borrowers don’t have to repay the loan amount. It’s aimed at helping family members meet the medical treatment costs of Covid-19 patients, during these difficult times.
Give a Missed Call to Get an Express Personal Loan from SBI10 Mar 2021
SBI has introduced a new personal loan scheme called SBI’s Xpress Credit Personal Loans. To avail of these loans, all that a customer has to do is give a missed call to 72089 33142 or send SMS PERSONAL to 72089 33145. Customers will get a call back f...
Read moreSBI has introduced a new personal loan scheme called SBI’s Xpress Credit Personal Loans. To avail of these loans, all that a customer has to do is give a missed call to 72089 33142 or send SMS PERSONAL to 72089 33145. Customers will get a call back from the customer care team to complete the loan process. The loan amount offered under this scheme ranges from Rs. 25,000 to Rs. 20 lakhs and the interest rates start from 9.60%. Individuals who have a salary account with SBI and earn a monthly income of Rs. 15,000 with income to EMI ratio less than 50% are eligible for loans under this scheme. Quick approval, instant disbursal of loan amount and minimal documentation is the highlight of personal loans under this scheme.
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