SBI has the largest banking network in the country with over 3000 branches all over the country. SBI provides financial assistance to an individual at every juncture of their lives. SBI helps to meet short term financial obligations as well as long term requirements. SBI personal loan is one such instrument which helps fulfilling short term financial desires of a person. The bank provides personal loan that can be used for any purpose such as education, wedding, holidays, to buy household appliances or to renovate any property.
Features and Benefits of SBI Personal Loan:
- The bank has a unique structure of levying interest rates which is considered as lowest rates as they are charged on reducing basis.
- The tenure can be chosen from a range of 12 months till 48 months.
- Bank charges no prepayment fees. Thus an individual can save money in the form of no interest in case they have ability to prepay their loan.
- Processing fees is very low as compared to industry standards with fees ranging between 2-3 %.
- There are no administrative and hidden costs levied by the bank in processing of a loan application.
- Loan can be availed for as low as INR 2.5 lacs in rural centers and INR 5 lacs in urban centers which is the minimum limit set by the bank.
SBI Personal Loan Eligibility
State bank on India provides loan to a salaried individual of a good and reputed organization while self-employed people like doctors, engineers, chartered accountants, architects and MBAs are also eligible provided they have two years of standing. The loan amount depends upon the income of the individual and maximum amount is capped at 12 times the net monthly income in case of salaried individuals and subject to limit of INR 10 lacs. The minimum income qualification for a SBI personal loan is INR 10000 in a rural center while it is INR 24000 in a metro.
Documents Required for SBI Personal Loan
State bank of India has a wide branch network. Thus, loans are processed in a very short period. Below are the documents required by the bank in case of an application by an individual:
- Passport size photograph of an applicant is required by the bank.
- Personal loan application needs to be accompanied by form 16 and latest salary slip of an individual.
- Address proof is required for self-employed individuals and professionals. It can include establishment certificate/ lease agreement or a telephone bill.
SBI has a well-defined fees and interest rate charges applicable on the loan. Interest rates are calculated as per prime lending rates defined by the central bank. Currently, bank charges interest rate of 18.20 % which is 8.5% above the base rate. Else, there is no collateral security required by the bank but processing charges range from 2-3 % of the loan amount.
How to Apply for Personal Loan
An individual can apply for an SBI bank personal loan by visiting website of the bank online. An individual is required to provide personal information like their name, contact number and email id while it can be applied by visiting any branch of the bank or loan centers located at various centers. SBI personal loan can also be applied through various insurance aggregators such as personalloanbazaar.com which helps you to compare interest rates on a single platform. Further, these insurance aggregators also help you to check your eligibility amount.