All About SBI Personal Loan Interest Rate in 2020

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.

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.

ParametersOfferings for salaried and self-employed individualsOfferings for Pensioners
AgeThe applicant must be aged between 21 years and 58 years.The age of the applicant can be up to 78 years.
IncomeMinimum income of Rs.5000Minimum income of Rs. 5000
Rate of interest10.55-16.60% annually11.50% annually
Loan AmountIt varies between Rs.25000 to Rs. 15 lakhs.It varies between Rs.25000 to Rs. 14 lakhs.
Loan tenureUp to 5 years or 60 monthsUp to 7 years or 84 months
Processing fees1 % of the loan amount. Taxes are extra.0.5% of the loan amount. Taxes extra applicable.
Credit Score750 and more750 and more
Foreclosure chargesIt 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

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.

 

  • Collateral

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 loan 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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »