No loan will be offered if the customer's salary account is not maintained or has not been transferred to SBI bank.

Advantages of SBI Personal Loan

These are the advantages that can be very beneficial for you while applying for a personal loan in SBI Bank - 

• No Hidden Cost - SBI personal loans come with clear and transparent terms. There are no concealed fees or charges, meaning all costs related to the loan (processing fees, prepayment charges, etc.) are disclosed upfront. This transparency helps borrowers avoid unexpected financial surprises during their loan tenure. 

• Minimal Documentation - SBI ensures that the loan application process is hassle-free, requiring only essential documents such as ID proof, income proof, and address proof. This minimizes the paperwork burden on the borrower, speeding up the loan approval process and making it more convenient for customers to access funds.

• Instant Loan Approval - SBI's digital platforms and efficient processes enable personal loan approvals to happen quickly and fast. For those in need of emergency financial support, this speedy response is advantageous as it provides them with peace of mind under stressful circumstances.

• Interest on Daily Reducing Balance - SBI personal loans use the daily reducing balance method, which means interest is calculated on the outstanding principal balance after each payment. This reduces the total interest you pay over the loan period, as the interest decreases with each installment, it benefits the borrower by lowering overall costs.

• High Loan Amounts - SBI offers high loan amounts based on the borrower's eligibility, which is beneficial for those requiring significant funds. Whether it’s for medical emergencies, weddings, home renovations, or debt consolidation, SBI's high loan limits ensure that borrowers have access to the funds they need without having to apply for multiple loans.

Factors affecting SBI Personal Loan Interest Rates

The following are the variables that impact interest rates on SBI Personal Loans:

• Employee’s Profile - Lenders often take the employer's profile into account when determining personal loan interest rates. Typically, banks and NBFCs offer lower interest rates to salaried individuals compared to self-employed individuals. Government and PSU employees generally enjoy even lower interest rates, as their jobs are seen as more secure, compared to those working in the private sector.

• Credit Score - Applicants with credit scores of 750 and above are considered more favorable by lenders for personal loan approval and may be offered more competitive rates.

• Monthly Earnings - SBI offers personal loans to applicants with a minimum monthly income of ₹15,000. The bank prefers lending to applicants whose total EMIs, including both existing and proposed personal loan EMIs, do not exceed 50% of their monthly income.

• Existing Relationship with the Bank - Many lenders offer interest rate concessions to applicants who hold an existing lending or deposit account with them. Therefore, individuals seeking personal loans should consider applying with the lenders they already have a relationship with.

For instance, those who maintain a salary account with SBI are eligible for a reduced interest rate on SBI Personal Loans than those who do not.

• Debt-to-Income Ratio - The debt-to-income ratio is calculated by deducting your total income from your debt payments. A higher debt-to-income ratio indicates that you are paying off debt with a significant portion of your income. Lenders may therefore impose a higher interest rate on a personal loan in such circumstances or your application might get rejected.

Calculating EMIs on SBI Personal Loans at Different Interest Rates

It is also important that you know about your EMIs and about the amount you have to pay to your lender. Yes, the same question strikes the mind of the loan borrowers. And, to get the answer to the same, you just need to use an online personal loan EMI Calculator. You can use Wishfin’s online SBI Personal Loan EMI calculator to quickly and easily determine your EMIs for a Personal Loan

You can simply put the following details - 

• Loan Amount

• Tenure

• Interest Rate

The equal monthly payments (EMIs) for a ₹7,00,000 personal loan with interest rates starting from 11.35% p.a. to 15.50% p.a. for terms of one to five years are shown in the table below. For better knowledge and understanding you can change or modify the amount of loan and other given information. 

What Should You Do to Fetch the Lowest Interest Rate from the SBI?

Those who follow the guidelines below can obtain an SBI personal loan with a lower interest rate:- 

• Contact your Bank - Reach out to the SBI Bank where you already hold a deposit or loan account. This could be beneficial for you because the bank already knows your capacity to repay and your creditworthiness. 

• Maintain a Good Credit Score - Always aim to keep your credit score at 750 or above. By paying your payments on time and refraining from asking for several loans at once, you can raise your credit score and in return ask for a lower interest rate. 

• Use your Salary Account - If you're a salaried employee, leverage your salary account to secure a better personal loan deal. The bank already has your income and transaction history, which makes it easier for you to get instant loans with minimal paperwork.

• Keep an Eye on Other Charges well - Keep in mind that, in addition to the principal and interest, the total cost of a personal loan usually includes a processing fee, GST, and other charges. Evaluate the total loan cost by considering all expenses involved. This includes the interest for the tenure, processing fees, and foreclosure charges to make an informed decision.
   
• Utilize Seasonal Offers - SBI often provides special offers during festive seasons or specific periods. These offers might include reduced interest rates, processing fee waivers, or other incentives. Taking advantage of these seasonal offers can help you save money on your loan.

Documents Required for SBI Personal Loan

The following documents must be submitted to apply for a personal loan from SBI:

• Identity Proof - Voter ID, PAN Card, Aadhaar Card, driver’s license or passport. 

• Address Proof - Voter ID card; passport; phone and electricity bills; property tax receipt. 

• ID Card issued by the employer. 

• Last 6 months salary slips 

• The application form was filled out properly. 

• 2 photographs passport size. 

• Irrevocable Letter of Authority addressed to the disbursing authority.

• Irrevocable Letter of Authority from the individual responsible for disbursing salaries and allowances.