State Bank of India (SBI) Personal Loan Interest Rate – 23 May 2024

SBI Personal Loan Salaried Self-employed
Loan Amount Rs. 50,000 to Rs. 15 lakhs Rs. 50,000 to Rs. 15 lakhs
Interest Rate 10.55% onward 11.20% onward
Tenure 6 months to 72 months 12 months to 48 months
Processing Fee 1% of the loan amount 2% to 3% of the loan amount
Pre-closure Charges 3%, allowed after payment of the first 6 EMIs No charges, allowed after payment of the first EMI
Part Prepayment Charges Not allowed Nil, allowed after the EMIs begin

State Bank of India Personal loan is up to Rs. 15 lakhs for salaried and self-employed individuals. The lowest EMI for Rs. 1 lakh is Rs. 1,880. The bank has different loan schemes to fund and meet urgent requirements of borrowers. The loan is unsecured and multipurpose. The bank assures quick and easy approval, superior customer service, special schemes and discounts for the employees of large companies, transparent policies, and other benefits.

Features of State Bank of India Personal Loan

Here are some of the features of personal loans SBI:

  • Purpose: The loan can be used for any personal expense such as education of children, medical emergency, travel, home improvement, vacation, wedding, etc. The funds are not for speculative use.
  • Rate of Interest: The interest rate ranges from 10.55% to 16.60%. The rates applicable differ as per loan products and types of borrowers (salaried, self-employed, women, entrepreneurs, farmers, pensioners, NRIs, etc).
  • Eligibility: The loan is available for both salaried and self-employed individuals. The age limit for applicants is between 21 years and 65 years (58 years for salaried individuals). Loan is available for pensioners as well. In such a case, the age limit is up to 75+ years.
  • Top up Loan: The bank offers top up on a personal loan. This is an additional loan that you can take from an existing loan taken from the State Bank. The additional loan is taken on the running loan. For instance, you have a running loan of Rs. 2 lakhs. But, you need Rs. 1 lakh more. In this case, you can opt for a top-up of Rs. 1 lakh on the existing loan of Rs. 2 lakhs. This facility can be also availed during a balance transfer of your loan to the new bank.

    If you have a good and regular repayment track record on the current personal loan, then SBI can provide you the top-up facility. Top ups are provided at a similar rate of interest as that on the existing loan. The starting rate on SBI top up personal loans is 10.55%.

  • Special Schemes: State Bank of India offers customized schemes and rates for special category of borrowers. These include borrowers working with the government, defense sector, reputed companies, banks, etc. Some of the special schemes are: SBI pension loan, SBI Xpress credit personal loan, State Bank festive loan, SBI Saral loan, Jai Jawan pension loan, etc.

SBI Personal Loan Interest Rates and Charges

Rate of interest depends upon your income, credit profile, CIBIL score, loan amount, employment stability, employer company categorization, and other factors. Along with the standard personal loan product, SBI offers customized loans to borrowers from different categories.

Here is the rate of interest tabulated for different SBI personal loan products:

Loan Product Rate of Interest
SBI Saral Loan 17.65% to 17.65%
SBI Xpress Credit Loan 11.50% to 13.50%
SBI Pension Loan 11.45% to 11.95%
SBI Festival Loan 12.50% to 16.60%
SBI Jai Jawan Pension Loan 12.45% to 12.45%

Here is a synopsis of SBI personal loan charges:

  • Processing Fees: 1% to 3% of the borrowed principal amount. Processing fee is a one-time payment usually deducted from the principal borrowed amount. It is also non-refundable.
  • Pre-closure charges: The charges are up to 3% of the prepaid amount. These charges are applicable only if you decide to close the loan before the end of its tenure.
  • Part payment charges: Part prepayment is not always allowed. Check with the bank for charges when part-payment is acceptable. Charges if any are applicable only if you plan to prepay a major portion of the outstanding loan amount. Part prepayment is done before the end of the tenure.
  • Other Charges:In relevant cases, SBI may apply cheque bounce charges (if EMI cheque bounces), late EMI payment charges (if you delay payment of an EMI), loan cancellation charges (if you cancel the loan after sanction), etc. These terms and conditions are disclosed in the loan agreement.

Illustration of SBI Personal Loan Total Cost

Here is a representation of the total cost of a personal loan SBI:

  • Annual Percentage Rate:10.55% to 16.60%
  • Borrowed Principal amount:Rs. 1 lakh
  • Tenure:6 months to 72 months
  • Processing Fee: Rs. 2,000
  • Fee to Loanbaba: No fee
  • Minimum EMI: For 72 months tenure at 10.55%, the lowest monthly cost (EMI) is Rs. 1,880. The payment includes the principal and interest component.
  • Maximum EMI: For 6 months tenure at 16.60%, the highest monthly cost (EMI) is Rs. 17,483. The EMI consists of the principal as well as the interest portion.
  • Total Interest Payout for the Entire Tenure: For 72 month period, the total interest payout is Rs. 37,360. For 6 months tenure, the total interest payout is Rs. 6,897.

SBI Personal Loan Interest Rate Calculation

You can expect the best rate on personal loan from the bank subjected to an assessment of your income, existing EMIs, loan amount, tenure, and other factors. Below-given are some of the conditions that help SBI to determine the rate to apply on the loan:

  • Income: Your income defines your ability to afford the EMIs and repay the loan. If you belong to a higher salary or income bracket, then it is easier to negotiate for a lower rate of interest. The rate offered by the bank depends on your net monthly income if you are a salaried person. If you are a self-employed person, then your annual income will be looked into.
  • Loan Amount: You can borrow between Rs. 50,000 and Rs. 15 lakhs. If you choose a higher loan amount, the applicable interest rate could be lower than that on a lower loan amount. However, a lower loan amount also reduces your financial liability. Compare the need for the funds and the associated costs to finalize the loan amount you wish to borrow.
  • Loan Tenure: Repayment period for State Bank personal loan is between 6 months and 72 months. Majority of the loan schemes come with a maximum of 48 to 60 months tenure. A longer tenure may apply a lower rate, and vice-versa. Understand your repayment ability before choosing a particular tenure. Shorter tenures will help you save significantly on the interest payout.
  • Repayment Capacity: Before sanctioning the loan, SBI will determine your repayment capacity as a borrower. The bank will go through your credit profile and credit score. Doing so will allow the bank to check your current and previous repayment track record on loans. Your credit history will also reflect details of credit card bill payments. Higher your credit score better would be the chances of getting a lower rate of interest.
  • Reputation of the Employer: Almost every bank maintains an internal list of companies. The companies are categorized on the basis of ranking from high to low. The ranking in turn is on the basis on the company’s existing relationship with the bank, the organization’s reputation, and size. If you work for an employer from a higher-ranked category, then chances of getting a better rate and discount are also higher.
  • Relationship with SBI: The bank may provide special offers, charges, and rates to existing account holders or to those who have made timely repayments on previous loans with the bank.

Types of SBI Personal Loans

State Bank of India offers customized personal loans for specific customer segments. These financial products are designed to meet the needs of particular borrowers. Features of these products are given below:

1. SBI Saral Personal Loan

This loan is available for salaried and self-employed individuals for personal expenses such as medical treatment, wedding, foreign or domestic travel, etc. The salaried individuals should be working in a reputed corporate house. The self-employed individuals include architects, doctors, engineers, MBA-degree holders, and Chartered Accountants. They should have a minimum work experience of 2 years to apply for the SBI Saral loan.

  • Age of the applicant should be between 21 years and 65 years (58 years for salaried individuals).
  • Minimum monthly income of the applicant is Rs. 5,000.
  • Loan amount is between Rs. 24,000 and Rs. 15 lakhs.
  • The loan amount provided depends on the borrower’s repayment capacity and income.
  • Tenure is up to 48 months. No requirement of security or mortgage of collateral.

2. SBI Xpress Credit Personal Loan

This is a special loan for the employees of Central PSUs, Quasi government, state and central government, Educational National Institute, profit making state PSUs, and a few companies. The personal loan helps them to fulfil cash requirements for a family vacation or medical emergency.

  • There is no need for security or collateral. The loan is available as an Overdraft facility on an existing account or term loan.
  • Age of the applicant should be between 21 years and 58 years.
  • Loan amount available is between Rs. 25,000 and Rs. 15 lakhs
  • Minimum monthly income to avail the funds is Rs. 5,000.
  • Maximum tenure is 48 months.

3. State Bank Festival Loan

SBI festival loan is specially catered during the festival season. The funds can be taken to meet any personal requirement. The borrower’s income and repayment capacity are considered to decide the eligible loan amount. Age of the applicant should be between 21 years and 58 years.

  • The loan is available for employees of PSUs, government, private limited companies and public sector firms making profits, etc. The loan is also provided to self-employed individuals with at least 2 years of work experience. It is also available for individuals with other sources of income such as pension, interest from government securities/NSCs/TDRs, etc.
  • Minimum monthly income eligibility is Rs. 3,000.
  • Loan amount available is Rs. 5,000 to Rs. 15 lakhs
  • Maximum tenure for repayment is 60 months.

4. SBI Pension Loan

State Bank pension loan is for government pensioners to fulfil urgent financial needs for travel, medical expense, or a family obligation. The funds are available for personal expenses of all the government pensioners who get their pension credited to SBI bank account. So, pensioners who work for Defense, State, or Central government and withdraw pension from SBI can apply for the personal loan against pension.

  • The pensioner should not be over 76 years of age.
  • Borrowing amount is up to Rs. 15 lakhs.
  • The pension should come via cheques from the government treasuries.
  • No processing fee is applied for defense pensioners.
  • Tenure is maximum 60 months.

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