In our everyday lives, we need a sufficient amount of funds to fulfill our financial needs and liabilities, including on special occasions and in emergency circumstances. We spend money on vacations, schooling, real estate, cars, marriage, and medical emergencies. There are periods when we must plan an SBI personal loan as it’ comes at a low-interest rate and with easy eligibility criteria.
Features of SBI Personal Loan
- SBI provides a loan amount of up to Rs. 20 lakhs to meet a variety of personal needs with a single loan.
- SBI provides various loan schemes to different types of borrowers, such as retirees, salaried staff, and self-employed people.
- Flexible tenure: If you want an SBI personal loan, you can repay it over a period of 6 months to 6 years.
- Application is simple: SBI personal loans can be applied for online with no hassle. The procedure necessitates minimal paperwork and fast processing.
SBI Bank Generic Interest Rate
| Type of Personal Loan | Interest Rate (p.a.) |
| Xpress Elite Scheme Personal Loan | 9.60% onwards |
| Pension Loan (including pre-approved pension loan) | 9.75% onwards |
| Xpress Credit Personal Loan | 10.60% onwards |
| Xpress Credit Insta Top-Up Personal Loan | 10.70% onwards |
| Xpress Credit Non-Permanent Employees Personal Loan | 11.50% onwards |
| Pre-Approved Personal Loan (PAPL) | 12.60% onwards |
| Clean Overdraft Personal Loan | 15.65% onwards |
| Quick Personal Loan | 10.85% onwards |
SBI Personal Loan Eligibility Criteria
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SBI Xpress Credit Personal Loan
SBI provides three different types of personal loans, each with its own set of requirements:
- Employees of state and federal governments, PSUs, and educational institutions with a salary account with SBI may apply for the SBI Xpress Credit personal loan.
- Individuals who earn a pension from any SBI branch may apply for an SBI Pension loan.
- Individuals who have an SBI salary account.
- Minimum monthly income of Rs. 15000/, with an EMI/NMI ratio of less than 50%.
- Employees of the Central/State/Quasi-Government, Central PSUs and profit-making state PSUs, Nationally renowned educational institutions, and selected corporates with or without a bank relationship.
- Amount of Term Loans
- 25,000 rupees is the minimum loan sum.
- Total Loan Amount: Rs. 20 lakhs / 24 times Net Monthly Income
- Amount of Overdraft Loans
- 5 lakhs are the minimum loan amount.
- Total Loan Amount: Rs. 20 lakhs / 24 times Net Monthly Income
- The second loan can be taken out at any time after the first loan has been paid off, as long as the total EMI/NMI ratio does not reach 50%.
- Only daily EMI repayments of the first loan are available for the second loan
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SBI Quick Personal Loan
- Individuals having Salary Account with any other Bank
- Minimum Net Monthly Income: Rs. 15,000/-
- EMI/NMI ratio less than 50%
- Employees working with
- Central/ State/ Quasi Governments,
- Central & State PSUs
- Corporate (Private & Public Ltd.)
- Educational institutions of National Repute
- Age: 21-58 years
- Minimum service of 1 year
- Loan Amount
- Minimum: Rs. 24,000
- Maximum: Rs. 20,00,000 / 24 times NMI
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SBI Pension Loan
Pensioners from the federal and state governments are eligible.
- The pensioner must be under the age of 76.
- SBI keeps track of pension payment orders.
- The pensioner must give an irrevocable assurance to the Treasury that he will not change his mandate during the loan’s term.
- The Treasury must agree in writing that no offer from a pensioner to move his pension payment to another bank will be accepted unless a NOC is given.
- The Scheme’s other terms and conditions will apply, including any guarantees provided by the partner (who is eligible for a family pension) or a suitable third party.
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Pensioners from the armed forces
- Armed Forces pensioners, including Army, Navy, and Air Force retirees, as well as paramilitary forces (CRPF, CISF, BSF, ITBP, and others), Coast Guards, Rashtriya Rifles, and Assam Rifles retirees.
- SBI keeps track of pension payment orders.
- There is no minimum age requirement for participation in the program.
- At the time of loan processing, the borrower’s age does not exceed 76 years.
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Family Pensioners
- Family pensioners are members of the pensioner’s family who have been allowed to collect a pension after the pensioner’s death.
- The age of a family pensioner does not exceed 76.
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SBI Pre-Approved Personal Loan
- Having an SBI account is now more satisfying! In just four taps, you can get pre-approved personal loans at your convenience, 24 hours a day, 7 days a week, via the YONO app.
- Currently, this loan is only available to a specific group of customers who have been pre-selected based on certain criteria set by us.
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SBI Personal Loan Eligibility Criteria for NRIs
SBI provides NRI customers with loans backed by their NRE/NRO/FCNR (B) deposits. The following are the most important aspects of this loan’s eligibility:
- The depositor is the only one who receives the loan.
- The loan may be used for commercial purposes, the purchase of a home or flat in India, or some other financial emergency.
- Agricultural operations and real estate transactions are not eligible for the loan.
- It is also not possible to re-lend the loan.
- The borrowed funds are not transferable to another country.
- It is not possible to remove the NRE/FCNR deposit associated with the loan early.
- The NRO deposit may be withdrawn early as long as the outstanding principal and interest are paid.
Eligibility for an SBI Personal Loan is influenced by a number of factors.
- Age – SBI provides personal loans to people of various ages. The SBI Pension Loan makes it easy for retirees to raise funds. Only salaried workers are eligible for the SBI Xpress Credit and Xpress Power loans, which means they must be above a certain age limit.
- Monthly Income – An applicant with a consistent source of income has a better chance of being approved for an SBI personal loan. The borrower’s monthly income is important since it dictates the borrower’s EMI repayment ability. Higher net monthly income applicants may be eligible for a larger loan sum.
- Work Experience – Lenders value an applicant’s commitment to a previous employer. This shows how long he or she has worked for the company. The applicant’s chances of remaining at the organization are also better. This guarantees the lender that the creditor will be willing to pay his or her EMIs in the future.
- CIBIL Score – A lender considers an applicant with a high CIBIL score to be less risky. The credit score ultimately represents an individual’s repayment discipline in previous loans. In general, a score of 750 or higher is considered fine.
- Residential Status – People who live in their own homes have a greater chance of being accepted for a loan. There are two explanations for this: if a person owns a home, he or she is more likely to have a higher net monthly income because he or she will not be paying rent. Second, there are fewer chances of this individual fleeing after defaulting on a loan EMI.
- Employment Form – As previously mentioned, individuals who are salaried or self-employed and earn a good monthly income have a better chance of having a personal loan from SBI.
- EMI/NMI Ratio – The EMI/NMI ratio is a proportion of the applicant’s post-tax net monthly income that estimates equated monthly installments. The individual’s loan eligibility is calculated by multiplying this ratio by 100. An applicant’s eligibility will be increased if his or her EMI/NMI ratio is high.
- Bank Account for Salaries – SBI customers with salary accounts are eligible for one of the bank’s personal loan offerings. Individuals who earn a bank pension are also entitled to apply for the SBI Pension Loan.
How to Increase Your Chances of Obtaining a Personal Loan from SBI
- Attempt to boost your credit score – It’s a good idea to review your credit score before applying for a loan and look for ways to boost it. It is advisable to make full use of your credit limit; under-utilization of your credit card can damage your credit score. You should also be punctual in making your EMI payments. Having a good balance of secured and unsecured loans in your portfolio is another perfect way to improve your credit score.
- Consider adding a co-applicant – If your credit score isn’t great, you can apply for a loan with a co-applicant that has better credit and income. The lender would be more likely to accept the application because the co-applicant is equally liable for repaying the loan.
- Apply once you’ve established a good income – When borrowers in their 30s or late 20s apply for loans, they are more likely to receive approval sooner than younger borrowers. This is the point at which you begin to establish financial stability, and the lender views you as a lower-risk borrower.
Conclusion:
Lastly, availing of an SBI personal loan is much easier and there are various reasons for this such as easy SBI personal loan eligibility criteria, low rate of interest, flexible repayment tenure, and much more.