State Bank of India is the largest public sector bank in the country and offers attractive rate of interest on Personal Loans for both salaried as well as self-employed individuals. While SBI Personal Loans are open for everyone to apply, the banking major assures additional benefits and perks for its existing customers, having their Salary Accounts with SBI.
Why Choose State Bank Personal Loan?
- If you are a Salary Account holder with SBI, you will have a benefit of low interest rate on the SBI Personal Loan. In regular cases, on a loan request for amount of Rs. 50,000 to Rs. 5,00,000 for the tenure of up to 5 years, the interest rate charged is 13.50 % to 15.99 % p.a; while for the SBI salary account holders, the interest rate range is much lower starting at 10.99 % to 13.50% p.a. Thus, the very first advantage of Personal Loan via your Salary Account is you save enough with lower interest rate.
- When you already have a salary account with the bank, then the bank is aware of your credentials, your earning potential and repayment history. Hence you just need to go through a very simple procedure of documentation and get your Personal Loan sanctioned.
- With a Salary Account already connected to your loan account you can easily pay your EMIs by auto debit, PDC, or ECS whichever method you are comfortable with.
- Exclusively to SBI salary account holders, you can pay your loan amount in full at any time during your tenure without getting worried about the compulsions of making certain number of EMIs before paying the loan in full.
- There is no prepayment charge. You can pay the entire balance amount anytime without being charged extra.
Opt for the right product
SBI Bank has different Personal Loan Options for Businessmen, Professionals, Salaried individuals and Pensioners as well. Interest rate depends on which Type of Personal Loan you have decided to avail.
Different types of Personal Loans are:
SBI Xpress Credit Loan: This is exclusively extended to those customers who have their salaried accounts with SBI Bank.
SBI Xpress Bandhan Loan: This is designed for salaried employees not maintaining their salary account with the bank
SBI Pension Loan: Loans given to all Central and State Government and Defence pensioners
SBI Xpress Credit Loan and its features
This SBI Personal Loan is specially designed for the employees who are associated with good repute like quasi government, state government, PSUs etc and it is mandatory for these employees to have a Salary Account with SBI Bank. There are some other eligibility criteria as well:
- Your debt to income ratio should be 50 percent or less.
- You should have a minimum income of Rs. 5000 per month to get eligible for this loan.
- The applicant should be working in Central Government, State Government, quasi government organizations, or educational institutes of national repute.
Benefits of the SBI Xpress Credit Loan:
- You get a lower interest rate than the other Personal Loan segments offered by the bank
– The processing fees is also lower than the other Personal Loan types (it is only 1% of the total loan offered)
- Since you are an existing customer of the bank, the bank is aware of most of your financial transactions. Hence you can avail this loan with minimal documentation and also get it processed faster than the other loans.
- The maximum loan tenure can be 5 years
- You do not require a guarantor or loan security.
- The loan can be pre-paid as when you have surplus cash. There are no pre-payment charges.
- Additional credit is also available. You can avail a Term Loan or Overdraft on the existing loan.
- You can borrow a minimum of Rs.24, 000 and a maximum limit is 15 lakhs or 24 times the Net Monthly Income for the Term Loan. For overdraft facility, the limit is Rs 10 lakhs to Rs 15 lakhs, subject to 24 times the Net Monthly Income.
- If you are a teacher, the maximum loan limit is 12 months of Gross salary for both loan schemes.
- You can also request a EMI holiday for first 6 month and payments will begin after 6 months of availing the loan.
- You can also apply for a second Xpress Loan after 12 months of clean credit history with the first loan.
- No penal interest for loans up to Rs.25, 000.
- Penal interest is charged at the rate of 2% per annum for loans above Rs.25, 000, on the overdue amount for the default period, subject to condition where loan EMI is not paid for more than 1 month.
- No penal interest is charged when EMIs are paid out partly.