SBI is one the leading and most trusted bank of India, offers personal loans from minimum Rs. 25,000 to maximum Rs. 15 Lacs. However, an applicant is limited to avail the loan amount as high as 24 times of his/her Net Monthly Salary only and maximum 12 times of Net Monthly Salary if applicant is working as a teacher in a school.
Currently, SBI offers personal loan for various types of borrowers, such as salaried employees of government or private companies, employees of educational institutions, pensioners including defense and family pensioners, employees working in IT industry and applicant who have existing relationship with the bank. Apart from it, SBI also offers personal loans to Non-Permanent Employees (NPEs) of government and private corporations.
SBI is one of the very few banks who charges interest rate of daily reducing balance rather than monthly reducing balance. SBI currently charges an interest rate ranging between 10.75% to 15.15% per annum to their personal loan customers with processing fee as high as 1% of the loan amount.
|SBI Bank Personal Loan at a glance|
|Annual Interest Rate||10.75% - 15.15%|
|Loan Term||12 Months - 60 Months|
|Loan Amount||Rs. 25,000 - Rs. 15 Lacs|
|Time of Funding||Usually within 2 to 3 days|
|Pre-Closure Charges||Zero to Upto 3% of the Loan Amount|
|Personal Loan Type||Applicable Interest Rate|
|SBI Xpress Credit
Personal Loan for Permanent Employees
|11.75% - 14.75% per annum
if loan is availed under No Check-Off Feature
11.25% - 14.25% per annum
if loan is availed with Check-Off Feature
|SBI Xpress Credit
Personal Loan for Non-Permanent Employees (NPEs)
|12.65% - 14.75% per annum
for Govt NPEs.
13.40% - 15% per annum
for NPEs of Co-operatives/ Institutions.
|SBI Xpress Credit
Personal Loan for IT Employees
| 13.15% per annum
if Credit Score is 750 points or Above
14.15% per annum
if Credit Score is between 550 - 749 points
15.15% per annum
if Credit Score is Less Than 550 points or No Score
|SBI Xpress Elite Loan
Personal Loan for Salaried Applicants having Existing SBI Salary Account Package
|10.75% per annum
if Credit Score is 800 points and Above
11.25% per annum
if Credit Score is 700 - 799 points
12.25% per annum
if Credit Score is 600 - 699 points
|SBI Xpress Elite Loan
Personal Loan for Salaried Applicants not having SBI Salary Account Package
|11% per annum
if Credit Score is 800 points and Above.
11.50% per annum
if Credit Score is 700 - 799 points.
12.50% per annum
if Credit Score is 600 - 699 points.
|SBI Xpress Power Loan
Personal Loan for or Salaried Applicants not disbursing salary through SBI
|11.60% to 13.25% per annum
Check-Off feature is offered or loan amount is Rs. 10 Lacs or above.
12.10% to 13.75% per annum
No Check-Off feature offered or loan amount is less than Rs. 10 Lacs.
|SBI Personal Loan for Pensioners
Including Defense and Family Pensioners
|11.70% per annum|
|Age||21 Years to 65 Years
76 Years Maximum
|Income||Rs. 20,000 per month
Min Rs. 5,000 for Existing SBI Account holder
|Experience at Current Organization||Minimum 1 Year|
|Total Work Experience||Minimum 2 Years|
SBI is a good fit for you if you are permanent and non-permanent employee working in any government organization, be it central government, state government or quasi government and offering personal loan of up to Rs. 15 Lacs with low interest rates.
SBI is a suitable bank to go for personal loan if you are teacher working in a public school. Being a teacher, you can avail personal loan equal to your 12 months net monthly income or maximum Rs. 15 Lacs.
Being an existing Saving/Current Account holders, gives you the privilege of low interest rate than others and some other benefits like less documentation and pre-approved offers.
SBI can also be a good choice to go with if you're an salaried employee working in IT (Information Technology) sector. SBI offers a specific interest rate structure for employees of IT sector, ranging from 13.15% to 15.15% per annum.
SBI offers low interest rate comparatively to many other Banks and FIs. The highest interest rate offered by SBI is 15.15% per annum as compared to Axis Bank with up to 24% per annum and ICICI Bank with up to 22% per annum.
The processing charges SBI levies on personal loan is equal to only 1% of the loan amount, which is quite low as compared to many other competing banks.
SBI doesn’t levies any penal interest charges on its personal loan customers if they are repaying their personal loan using part-payment method and have got their part-payment EMI delayed for any reason. However, you don’t get this benefit if you’re repaying your personal loan using regular monthly EMIs.
When availing a personal loan from SBI, you should keep it in mind that SBI doesn't allowed prepayment until the first 12 EMIs of the loan is paid. So if you are planning to prepay your personal loan quickly then SBI can be a bad choice for you.
In case you wants to pay your Xpress Power loan EMIs by any other means than NACH/SI such as PDCs or cash over the counter, then you must know that it’s mandatory to pay the EMIs through NACH/SI before applying for the loan.
|Bank Name||SBI||HDFC Bank||ICICI|
|Typical APR||10.75% - 15.15%||11.39% - 20.99%||10.99% - 22%|
|Loan Term||12 Months - 60 Months||12 Months - 72 Months||12 Months - 60 Months|
|Maximum Lending Amount||Rs. 15 Lacs||Rs. 50 Lacs||Rs. 20 Lacs|
|Processing Fee||Nil||Up to 2.50% of the loan amount||Up to 2.25% per annum of the loan amount|
|Time to Funding||Within 2 to 3 days||Within 4 hours||Within 3 days|
|Pre-Closure||Zero to Upto 3% of the prepaid amount||2% to 4% of principal outstanding||5% per annum of principal outstanding|
The interest rate SBI charges on personal loan is ranging between 10.75% to 15.15% per annum, which is quite low as compared to many other competing banks offering today such as HDFC Bank levies an interest rate of 11.39% to 20.99% per annum and ICICI Bank levies rate of interest between 10.99% to 22% per annum. As far the processing fee is concerned, SBI only levies 1% of the loan amount whereas other banks like HDFC charges a fee of up to 20.50% of the loan amount and ICICI charges a processing fee of upto 2.25% of the loan amount.
The repayment period of 12 months to 60 months, offered by SBI Bank is standard term offered by many other banks; However, many other banks and FIs like HDFC and Bajaj Finserv offers longer tenure than this. HDFC Bank offers personal loan for tenure as long as 72 months from the date of loan sanction and Bajaj Finserv offers tenure as long as 96 months.
As far the pre-closure fee is concerned, SBI allows pre-closure either in full or part after full repayment of first 12 EMIs and charges a fee equal to 3% of the prepaid amount. The preclosure fee that other competing banks and FIs charges are quite high as compared to SBI. Banks like HDFC and ICICI are charging preclosure fee as high as 4% to 5% on the principal outstanding amount.
SBI offers Xpress Credit personal loan for both Permanent Salaried and Non-Permanent Salaried applicants. A salaried applicant can be anyone, an employee of Central / State Government, Quasi-Government, Central / State PSUs, Educational Institutions of National Repute, Selected Corporates who have existing business relationship with the Bank and Corporates who do not have business relationship with the Bank as well as do not have ECR.
With SBI, a salaried applicant can avail minimum amount of Rs. 25,000 to maximum Rs. 15 Lacs. However, the maximum amount cannot be more than 12 times of Net Monthly Income for school teachers and 24 times of Net Monthly Income of other applicants. The funds can be availed for a minimum 12 months to maximum 60 months. Apart from it, an applicant doesn’t need to provide any security or guarantee in order to be eligible for the loan. In this case the applicable interest rate will be charged based on the External Credit Rating of the employer and creditworthiness of the borrower.
Currently, SBI charges an interest rate of 11.25% to 14.25% to permanent salaried employees with check off facility i.e. where applicant has provided an authority to the bank to collect monthly EMI directly from their employers’. And, an interest rate of 11.75% to 14.75% for personal loan with no check-off facility.
The interest rate offered to non-permanent employees of Government, Central / State PSUs, Defence personnel, Educational Institutions of National Repute is ranging between 12.75% to 14.75% per annum. And for the employees of Co-operatives/ Institutions not covered under regular Xpress Credit loan scheme and Unrated Corporates is ranging between 13.40% to 15% per annum. Apart from it, SBI also offer a different interest rate structure for IT employees, ranging between 13.05% to 15.05% per annum. As far as the processing charges are concerned, SBI only charges a processing fee equal to 1% of the loan amount.
SBI is also offering a personal loan to borrower on the basis of the applicant having an existing SBI Salary Account Package or maintaining the relationship by any other means. An applicant can avail personal loan of minimum Rs. 25,000 to maximum Rs. 15 Lacs, subject to maximum 24 times of the Net Monthly Income. If borrower is a school teacher by profession, then he/she can avail personal loan maximum upto 12 times of their Net Monthly Income only.
The interest rate charged in Xpress Elite personal loan varies depending upon the credit score of the applicant. An applicant maintaining SBI Salary Account with credit score of 800 or above is offered with an annual interest rate of 10.75%, applicant with credit score of 700 to 799 is being offered an interest rate of 11.25% per annum, an interest of 12.25% per annum to applicant maintaining a credit score of 600 to 699.
The applicants maintaining relationship with SBI other than SBI Salary Account Package can avail personal loan with an annual interest rate of 11% if maintaining a credit score of 800 or above, 11.50% per annum if credit score is between 700 to 799, and 12.50% per annum if credit score is between 600 to 699. The repayment period offered on Xpress Elite personal loan is same as Xpress Credit, ranging between minimum 12 months to maximum 60 months and charges a one time processing fee equal to 1% of the loan amount.
State Bank of India offers Xpress Power Loan, a personal loan to salaried employees who are not maintaining salary account with State Bank of India. An eligible applicant can be a working employee of Government Department, PSUs, National Education Institutions, and some select Corporates as rated by SBI.
The minimum gross monthly income for SBI Xpress Power Loan is Rs. 50,000, where the net take-home pay must be equal to 50% of net monthly income after excluding all the outgoing pays, including the purposed emi for the Xpress Power loan. An eligible applicant can borrow from a minimum of Rs. 25,000 to maximum up to Rs. 15 Lacs, where the maximum borrowed amount cannot be more than the 24 times of net monthly income. The tenure ranges from minimum 12 months to maximum 60 months, depending upon the remaining period of the service.
As far the interest rate is concerned, SBI charges an annual interest rate from 12.10% to 13.75% per annum to Xpress Power loan borrowers. However, if you are Check-Off Facility to pay your monthly EMIs or the loan amount is equal to Rs. 10 Lacs or above, then you get 0.50% concession on interest rate. Thus, the applicable interest rate in this case would be between 11.60% to 13.25% per annum.
The processing charges applicable for the loan is equal to 1% of the sanctioned amount. However, SBI is offering zero processing charges to the Xpress Power Loan borrowers till November 30th, 2018 under Festival Offer.
SBI also offers personal loan to pensioner including Defense pensioners and family pensioners. Currently, SBI offers a personal loan of minimum Rs. 25,000 to maximum equal to 18 Months’ Pension. If pensioner age is 72 years at the time of loan sanction then the applicant can avail maximum Rs. 14 Lacs. If age is between 72 years to 74 years then the maximum loan amount is limited to Rs. 12 Lacs. The pensioner between the age of 74 years to 76 years can avail only maximum Rs. 7.50 Lacs.
In case of Defense Pensioners, an applicant is offered to maximum loan amount equal to 36 Months’ Pension. A Defense Pensioner up to the age of 56 years can avail maximum Rs. 14 Lacs, subject to maximum 36 months pension. Defense Pensioner between the age of 56 years to 72 years can avail maximum Rs. 12 Lacs, subject to equal to 18 month pension. Defense Pensioner between the age of 72 years to 74 years can avail maximum Rs. 12 Lacs, subject to equal to 18 months pension. A defense pensioner between the age of 74 year to 76 years can avail maximum Rs. 7.50 Lacs or equal to 18 months pension.
In case of Family Pensioners, the maximum amount an applicant can avail is limited to 18 months’ pension. If the applicant is 72 years at the time of loan sanction, the maximum loan amount is limited to Rs. 5 Lacs. A Family pensioner between the age of 72 years to 74 years can avail maximum Rs. 4.50 Lacs only and between the age of 74 years to 76 years is limited to only Rs. 2.50 Lacs.
The interest rate offered to pensioners including defense pensioner and family pensioner is 11.70% per annum with one time repayment period of 1% of the loan amount. And, the repayment period is minimum 12 months to 60 months.
|Type of Charges||Applicable Amount|
|Processing Charges||1% of the loan amount|
|Prepayment Charges||3% on the prepaid amount
0% if loan is closed with the opening of new personal loan under the same scheme
|Penal Interest||2% per annum over the overdue amount
3% of Principal Outstanding if foreclosure made between 25-36 Months from disbursal.
0% if Part EMI is overdue
The processing charges levied by SBI on personal loan borrower are maximum 1% of the loan amount, whereas it’s competing banks like HDFC Bank and ICICI charges high processing fee as up to 2.50% of the loan amount and up to 2.25% of the loan amount respectively.
Apart from the processing charges, the prepayment charges that SBI levies are also way lower than private sector banks like ICICI. SBI only charges 3% on the prepaid amount for pre-closure and nil on personal loan for pensioners; However, you can only prepay your personal loan after the full repayment of first 12 EMIs. Whereas competitor banks like ICICI charges high pre-closure fee equal to upto 5% of the principal outstanding but allows to prepay personal loan anytime with foreclosure method. The part-payment closure is not allowed in ICICI Bank as compared to SBI.
The other best thing about SBI is the flexibility on penal interest. If you’re prepaying your personal loan using part-payment method and got your Part-payment EMI delayed for any reason, then you don’t need to pay any penal interest on your late EMI; However, if your EMIs got delayed during the repayment of the personal loan using regular monthly EMIs, then an additional interest rate of 2% per annum will be levied on you for every month until the late EMI is cleared in full.
It will take at least 2 to 3 days for the approval of SBI Xpress Credit Personal Loan.
You don’t have to pay any prepayment charges if the account is closed from the proceeds of a new loan account opened under the same scheme.
Security is only necessary in case of SBI Personal Loan for Family Pensioners, where you have to provide a third-party guarantee of Spouse eligible for family Pension. In the absence of spouse, third-party guarantee of any other family member worth the loan amount.
Yes, the income of your spouse can be included in case he/she guarantees the loan or the loan is applied jointly.
In any case Monthly EMI should not be more than 40% to 50% of the Net Monthly Income of the applicant.
Yes, SBI would charge a late payment fee equal to the 2% of the overdue amount per annum from the payment due date to the date on which the amount is settled in real.
In case, Part EMI remains overdue then late payment fee or penal interest should not be charged to the borrower.
SBI provides Personal Loan as per the following terms –
Salaried applicants who are a permanent employees of the below entities.
Apart from it, Pensioners of the State or Central Government, Defence Pensioners and Family Pensioners including Defence Family Pensioners.
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