SBI Personal Loan Eligibility

State Bank of India Personal Loan Eligibility Criteria – A Snapshot

Sbi Personal Loan Eligibility
State Bank of India Personal Loan Eligibility Criteria – A Snapshot
Interest rate From 9.60% per year
Loan amount Tot 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 maturity of the loan
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 used 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, offers customers specially tailored personal loans. These personal loans are a great benefit to customers when they need funds immediately. SBI offers personal loans to its customers with various types of uses. From the SBI website, users can learn the features of these loans and refer to the plan that suits their needs better.

SBI offers one of the lowest interest rates for personal loans. You get interest based on daily reducing balance, which significantly reduces your interest burden.

SBI personal loan can be used as a term loan or an overdraft facility. Individuals can choose the method of loan disbursement to suit their needs.

Apart from a competitive interest rate, SBI offers periodical offers to borrowers of personal loans 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 types 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?

As there are numerous personal loan products, the eligibility criteria for each product is different. Let’s 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 Details
SBI Xpress Credit – For individuals with a salary account with SBI

Term loans

Minimum monthly income of Rs. 15,000 Salaried individuals – 21 -58 years old

Self-employed individuals – 21 – 65 years old

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 charge of 3% on prepaid amount.
SBI Xpress Credit – For individuals with a salary account with SBI

Overdraft

Minimum monthly income of Rs. 15,000 Salaried individuals – 21 -58 years old

Self-employed individuals – 21 – 65 years old

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 who work with

Central / State / Quasi Government,

Central PSUs and for-profit state PSUs,

Educational institutions of national standing,

Selected companies with or without a relationship with the bank.

SBI Quick Personal Loan Minimum monthly income of Rs. 15,000 Salaried individuals – 21 -58 years old

Self-employed individuals – 21 – 65 years old

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 THAT Minimum loan amount: Rs 50,000

Maximum lending: Rs 20 lakhs

Demand Loan: Must be liquidated within 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 Claim loan and overdraft facility up to 90% of Term Deposit THAT Minimum amount of loan (for online overdraft against fixed deposit): Rs 25000

Maximum loan amount (for online overdraft against fixed deposit): Rs 5 crore

The maximum Repayment period is limited to 5 years against STDR/e-STDR and 3 years against TDR/e-TDR respectively for Overdraft account used online. No processing fees.

No prepayment penalties.

Lening teen 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 lacs

Overdraft facility allows multiple repayments. The investor(s) must have an SB account of SBI.

The SB account and DAF must have an identical name and PAN number.

Personal loans filtered especially for you

Factors Affecting Personal Loan Eligibility at State Bank of India

During the processing of your loan, the bank looks at different factors that determine the loan amount for which you are eligible and the interest rate that is offered to you. One should note that the loan amount and interest rate can be negotiated with the banker by taking specific steps that will increase your credibility with the banker. Here are some points to keep in mind before applying for a personal loan:

Maintain a good credit score

Your credit score is an important factor in determining your eligibility for SBI personal loans. A good credit score means that the repayment history is good. There is a promise of a higher loan amount and lower interest rate. Banks consider a higher credit score as a measure of your creditworthiness. This greatly affects the eligibility of your loan amount and interest rate.

The loan amount approved 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 to self-employed people because wages mean daily cash flow is earned from the account. Self-employed professionals, especially if they can show proof of income and a stable business.

Your age is also important

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 will have to repay the loan. Personal loans will be made available to people who are 21 years old. Unlike older candidates, loan amounts and interest rates are very favorable for younger generation applicants.

Type of Employment & Employer is taken into account

Working with a reputable firm will give you a good deal on your SBI Bank Personal Loan interest rates. Several banks have a list of approved employers and reputable entities that they refer to when approving a loan. Jobs in these businesses come with job security and reduce the risk that the banker bears.

Customer loyalty is important

Preference is often given to bank customers with a long-term relationship, who rely on the fact that their credit record is more easily accessible. 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 deserving member of the family so that their income is also taken into account when you approve your personal loan application. When the income of both the applicants is entered, it leads to a higher repayment capacity, and thus a lower interest rate results.

Current loans and liabilities

While determining your personal loan eligibility and interest rates, your current debts and obligations 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 a high-risk scheme. This will 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?

  • Proof of Income: Latest Income Tax Return, Bank Statement of last six months, Last month Salary Slip
  • 2 passport size photos
  • KYC Documents: Proof of Identity & Proof of Address

Personal Loan Eligibility Calculator on CreditMantri

Although getting a personal loan from SBI is a piece of cake, borrowers should check the loan tenure and the monthly EMI amount. Personal loans are generally unsecured loans and therefore come with a higher interest rate. Applicants are advised to use the personal loan EMI calculator to determine the monthly EMI amount to determine whether they can afford to make regular payments on their personal loans. Because defaulting on your loan repayments will hurt 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 term

You can enter the loan amount and the approximate interest rate in the respective fields. You then select the repayment term, 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 term to meet your needs and repayment capacity.

FAQs – Eligibility for Personal Loans – State Bank of India

1. Do I need to offer some kind of security?

No collateral is required to secure a personal loan.

2. Can a spouse’s income be added to use 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 personal loans from State Bank of India?

According to the current market, the State Bank of India offers personal loans starting with an interest rate of 9.60%. As mentioned earlier, the number is determined based on several 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 in to the YONO app or website
  • Step 2: Click on ‘Available Now’ under Personal Loans
  • Step 3: Choose your preferred tenure and 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 working days to process the personal loan, after submitting the duly filled application form along with all the required documents.

9. Do I need to provide security for SBI Personal Loans?

No collateral is required to secure a personal loan with SBI.

10. Is there any advantage in adding my brother as my co-applicant on the personal loan application, who is an employee with a reputed MNC?

A lot, yes. Adding a co-applicant increases the chances of your State Bank of India personal loan getting competitive interest rates. A well-known employer can also get you extra preference.

11. Do I have to be an existing customer of SBI Bank to apply for the personal loan?

No, you do not need to 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?

An important factor in assessing your eligibility for SBI personal loans is your credit score. A good credit score means that the repayment history is good. A higher loan amount and lower interest rate is promised. Banks view a higher credit score as an indicator of creditworthiness. This significantly affects the eligibility of your loan amount and interest rate.

See also  SBI Personal Loan - Apply Online 2023

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