SBI Personal Loan – Eligibility, Interest Rate and Scheme Details

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SBI Xpress Credit and Xpress Credit Elite

When it comes to fulfilling your unpredictable life desires or meeting emergency needs, financial limitations can often pose challenges. Understanding your needs, the State Bank of India (SBI) offers a range of customer-friendly Personal Loan schemes under their Xpress Credit series. In this article, we delve deep into this prolific banking product.

Features and Benefits of SBI Personal Loan

Some of the top features and benefits that enhance the allure of an SBI Personal Loan include a handsome loan amount, reasonable interest rates, and a bunch of other attractive perks that are enumerated below:

  • Loan amount up to INR 35 lakhs, making it suitable for various financial needs.
  • Interest is calculated on the daily reducing balance, ensuring you only pay for what you owe.
  • Low processing charges and zero hidden costs make the SBI Personal loan a cost-effective borrowing option.
  • No requirement of a security or guarantor which streamlines the loan application process.
  • The provision of securing a second loan provided the first one is being serviced as per the terms.

Eligibility Criteria For SBI Personal Loan

To ensure easy and secure lending, SBI has established certain eligibility criteria for its personal loan products:

  1. The applicant must have a Salary Account with SBI.
  2. The minimum monthly income of the applicant must be INR 15000.
  3. The EMI/NMI ratio must be less than 50%.
  4. The applicant must be working with the central or state government, a quasi-government institution, a for-profit PSU, educational institutions of national repute or selected corporates with a relationship with the bank.

Offerings under SBI Personal Loan

The SBI Personal Loan comes in two flavors: Term Loans and Overdraft Loans. Here’s a look at what each of these offer:

Term Loans:

  • Minimum Loan Amount – INR 25,000
  • Maximum Loan Amount – INR 35 lakhs or 24 times of Net Monthly Income (NMI)

Overdraft Loans:

  • Minimum Loan Amount – INR 5 lakhs
  • Maximum Loan Amount – INR 35 lakhs or 24 times of NMI

Second Loan:

An individual is eligible for a second loan after the disbursement of the first loan, subject to the overall EMI/NMI ratio of 50%. The second loan is granted only after regular EMI repayments of the first loan.

Terms and Conditions For SBI Personal Loan

There are certain terms and conditions that you should be aware of before applying for an SBI Personal Loan:

  • Penal Interest @2% per month would be charged over the applicable interest rate on the overdue amount for the period of default.
  • A prepayment charge of 3% on the prepaid amount. There are no prepayment/ foreclosure charges if the account is closed with proceeds from a new loan account under the same scheme.
  • The minimum repayment period is 6 months and the maximum repayment period is 6 years (72 Months) or the remaining period of service, whichever is lower.

Special Offers On SBI Personal Loan

There’s currently a ‘Festive Dhamaka’ offer providing 0.50% extra concession in Interest Rate till 31st December 2023 and zero Processing Fee till 31st January 2024. To avail any further information or apply for the loan you can contact their helpline at 1800-11-2211 or send an SMS “PERSONAL” to 7208933145 to get a callback.

Personal Loan Schemes – Current Rate of Interest

As of 15.07.2023, the Mean ROI for Xpress Credit (Q2 FY24) is 12.57%. Rates vary according to the borrower profile such as Defence/Central Armed Police/Indian Coast Guard applicants, Central or State Govt./Police/Railway/Central Public Sector Enterprises (CPSEs), and other corporates.

Rates for Different Categories of Applicants

2 year MCLRSpread over 2 year MCLREffective Interest Rate with No Reset
Applicants of Defence/ Central Armed Police/ Indian Coast Guard8.65%2.40% – 3.90%11.05% – 12.55%
Applicants of Central Govt./ State Govt./ Police / Railway/ Central Public Sector Enterprises (CPSEs) Considered Under ‘RATNA’ Status8.65%2.40% – 4.90%11.05% – 13.55%
Applicants of Other Corporates8.65%3.40% – 5.40%12.05% – 14.05%

Note that these rates are subject to change according to the bank’s discretion.

Xpress Elite Scheme

Xpress Elite Scheme is a variant of SBI Personal Loan for individuals who either have their Salary Account with SBI or another bank having Net Monthly Income of more than 1,00,000/- rupees. In Xpress Credit Elite Scheme the customer can avail personal Loan upto 35.00 Lakhs. The rate of interest varies slightly in each case. The following tables outline the rates:

2 year MCLRSpread over 2 year MCLREffective Interest Rate with No Reset
Salary Account with SBI:8.65%2.40% – 2.90%11.05% – 11.55%
Salary Account with another Bank:8.65%2.65% – 3.15%11.30% – 11.80%

With so many varieties at great interest rates, the SBI Personal Loan Xpress Credit can be seen as a boon for those looking for an adequate financial instrument to satisfy their needs. The cherry on the cake is the ongoing special festive discount, making it an opportune moment to take advantage of this offering. Remember, the right time to finance your dreams is now!

SBI Official Website