State Bank of India (SBI) is a leading personal loan provider in the lending sector. It offers personal loan without collaterals and doesn’t charge any prepayment fees in case the borrower wishes to close the loan before the loan tenure. Fast processing and less documentation requirement make it more attractive. SBI Personal loan can be used to meet personal financial emergencies like taking care of medical expenses, wedding, travel and education expenses, home renovation, for funding business etc. Instant Personal loan from SBI can be availed by salaried individuals and self-employed professionals and non-professionals. You can sign up for freejobalert .
SBI Bank personal loan interest rate for salaried and self-employed individuals varies from 10.55-16.60% per annum. They offer personal loan to pensioners at 11.50% per annum. The loan amount which can be availed range between Rs.25000 to Rs. 15 lakhs.
|Parameters||Offerings for salaried and self-employed individuals||Offerings for Pensioners|
|Age||The applicant must be aged between 21 years and 58 years.||The age of the applicant can be up to 78 years.|
|Income||Minimum income of Rs.5000||Minimum income of Rs. 5000|
|Rate of interest||10.55-16.60% annually||11.50% annually|
|Loan Amount||It varies between Rs.25000 to Rs. 15 lakhs.||It varies between Rs.25000 to Rs. 14 lakhs.|
|Loan tenure||Up to 5 years or 60 months||Up to 7 years or 84 months|
|Processing fees||1 % of the loan amount. Taxes are extra.||0.5% of the loan amount. Taxes extra applicable.|
|Credit Score||750 and more||750 and more|
|Foreclosure charges||It is charged as 3 per cent of the prepaid amount.||It is charged as 3 per cent of the prepaid amount.|
Factors affecting SBI Bank Personal Loan Rate of Interest
Personal loan interest rate offered to individuals depends on few factors viz. their income, repayment capacity and credentials. The bank is concerned about the timely repayment and henceforth takes the financial aspects of the borrower into consideration. On account of the factors mentioned here, the bank decides what rate of interest to be offered.
- Loan amount
The bank takes the loan amount into consideration to decide upon the rate of interest. Few customers may get a negotiated deal while few may be charged more than what is on offer.
- Loan Tenure
Again, the bank considers the loan tenure before deciding on the interest rate. Longer tenure results in the bank’s earning as the borrower is liable to pay the interest for the complete time.
Income is a dominant factor in SBI Personal loan eligibility. On account of the net monthly income of the borrower, the bank decides on the rate of interest.
- Repayment Capacity
The bank wants its principal amount back along with the interest on time. And to check for that, they consider the financial aspects of the borrower for which they also seek their bank statement to gain insight into their transactions.
Secured personal loans wherein the applicant put any of his assets as security with the bank is sure to get a better interest rate. The bank gives preference to the customers who are willing to secure their loan. In return, they offer a lower rate of interest in comparison to what they offer on the unsecured personal loan.
- Relationship with the bank
The bank gives special preference to their existing customers and also offers them better interest rates.
- Credit score
The credit score of the applicant is surely taken into consideration by the State Bank of India. Good credit score may result in a lower rate of interest offer from the bank.
IMPORTANT THINGS TO REMEMBER ABOUT SBI PERSONAL LOAN RATE OF INTEREST
Before one applies for a personal loan with SBI, it is important to check the eligibility criteria as defined by the bank to avoid getting the loan application rejected. The interest rate offered by SBI is the sole discretion of the bank.
- SBI Personal loans interest rate is dependent upon the RBI repo rate.
- SBI offers a floating rate of interest on its personal loan product.
- SBI doesn’t require any collateral or guarantor to secure the personal loan.
- A credit score doesn’t always determine a better interest rate deal on SBI personal loan .
One should also compare the SBI Personal Loan with other top lenders including Banks and NBFCs, fintech like LoansJagat offer a unique platform where one can compare the offerings and terms of various lenders including SBI and make an informed decision to avail the best personal loan for them.