Overview
SBI is one the leading and most trusted banks of India, offering personal loans with a minimum of Rs. 25,000 to maximum Rs. 20 Lacs. However, an applicant is limited to avail the loan amount as high as 24 times of his/her Net Monthly Salary only and a maximum of 12 times of Net Monthly Salary if the applicant is working as a teacher in a school.
Currently, SBI offers personal loans for various types of borrowers, such as salaried employees of government or private companies, employees of educational institutions, pensioners including defense and family pensioners, employees working in the IT industry, and applicants who have an existing relationship with the bank. Apart from it, SBI also offers personal loans to Non-Permanent Employees (NPEs) of government and private corporations.
SBI is one of the very few banks that charge an interest rate of daily reducing balance rather than monthly reducing balance. SBI currently charges an interest rate ranging between 9.60% to 13.85% per annum to their loan customers with the processing fees as high as 1% of the loan amount.
SBI Personal Loan Interest Rates
| SBI Personal Loan Type | Applicable Interest Rates |
| SBI Xpress Credit Personal Loan for Permanent Employees | 10.60% – 12.60% per annum |
| SBI Xpress Credit Personal Loan for Non-Permanent Employees (NPEs) | 11.50% – 13.60% per annum For NPEs of any Govt Organization or Educational Institutions of National Repute 12.25% – 13.85% per annum For NPEs of Co-operatives/ Institutions not covered under regular Xpress Credit loan scheme and Unrated Corporates |
| SBI Xpress Credit Insta Top-up Loan | 10.70% per annum |
| SBI Pre-Approved Personal Loan (PAPL) | 12.60% per annum |
| SBI Quick Personal Loan through CLP portal | 10.85% – 12.85% per annum |
| SBI Xpress Elite Loan Personal Loan for Salaried Applicants having Existing SBI Salary Account Package | 9.60% – 11.10% per annum |
| SBI Xpress Elite Loan Personal Loan for Salaried Applicants with no SBI Salary Account Package | 9.85% – 11.35% per annum |
| SBI Personal Loan for Pensioners Including Defense and Family Pensioners | 9.75% – 10.25% per annum |
SBI Personal Loan Eligibility Criteria
| Eligibility Criteria | Requirements |
| Minimum Age | 21 Years |
| Maximum Age | 65 Years For Salaried/Self-Employed 76 Years For Pensioners |
| Minimum Income | Rs. 5,000 For SBI Customers Rs. 20,000 For Non-SBI Customers |
| Experience at Current Organization | Minimum 1 Year |
| Total Work Experience | Minimum 2 Years |
- The minimum age of the applicant should be 21 at the time of loan application and Maximum age of the Salaried/Self-Employed Applicant should not exceed 65 years and 76 years in case of Pensioners, at the time of loan maturity.
- Minimum stability of 1 year in current job and total work experience of 2 years is required.
- The minimum net monthly income of Rs. 5,000 required for SBI Personal Loan in case the applicant has an existing account in SBI. Otherwise, a minimum net monthly income of Rs. 20,000 is necessary.
SBI Bank Personal Loan at a glance
| Annual Interest Rate | 9.60% – 13.85% |
| Loan Term | 12 Months – 60 Months |
| Loan Amount | Rs. 25,000 – Rs. 20 Lacs |
| Time of Funding | Usually within 2 to 3 days |
| Pre-Payment Charges | Zero to Up to 3% of the Loan Amount |
Why SBI is a Good Fit for You?
Permanent & NPEs (Non-Permanent Employees)
SBI is a good fit for you if you are a permanent and non-permanent employee working in any government organization, be it central government, state government, or quasi-government, and offering a personal loan of up to Rs. 20 Lacs with low-interest rates.
School Teachers
SBI is a suitable bank to go for a personal loan if you are a teacher working in a public school. Being a teacher, you can avail personal loan equal to your 12-month net monthly income or a maximum of Rs. 20 Lacs.
Have SBI Saving/Current Account
Being an existing Saving/Current Account holder gives you the privilege of a low-interest rate than others and some other benefits like less documentation and pre-approved offers.
What to watch out for?
No Prepayment Allowed within 1st Year
When availing of a personal loan from SBI, you should keep in mind that SBI doesn’t allow prepayment until the first 12 EMIs of the loan are paid. So if you are planning to prepay your personal loan quickly then SBI can be a bad choice for you.
Compare SBI Personal Loans to Other Banks
| Bank Name | SBI | HDFC Bank | ICICI Bank |
| APR | 9.60% – 13.85% | 10.50% – 21% | 10.50% – 19% |
| Loan Term | 12 Months – 60 Months | 12 Months – 60 Months | 12 Months – 72 Months |
| Maximum Lending Amount | Rs. 20 Lacs | Rs. 40 Lacs | Rs. 25 Lacs |
| Processing Fee | 1% of the Loan Amount | Up to 2.50% of the loan amount | Up to 2.50% of the loan amount |
| Time to Funding | Within 2 to 3 days | Within 4 hours | Within 3 days |
| Pre-Closure Fee | Zero to Up to 3% of the Loan Amount | 2% to 4% of principal outstanding | 5% of principal outstanding |
The interest rate SBI charges on a personal loan is ranging between 9.60% to 13.85% per annum, which is quite low as compared to many other competing banks offering today such as HDFC Bank levies an interest rate of 10.50% to 21% per annum and ICICI Bank levies rate of interest between 10.50% to 19% per annum. As far as the processing fee is concerned, SBI only levies 1% of the loan amount whereas other banks like HDFC and ICICI Bank charge a fee of up to 02.50% of the loan amount.
The repayment period of 12 months to 60 months, offered by SBI Bank is the standard term offered by many other banks; However, many other banks and FIs like HDFC and Bajaj Finserv offer longer tenure than this. HDFC Bank offers personal loans for tenure as long as 72 months from the date of loan sanction and Bajaj Finserv offers tenure as long as 96 months.
As far as the pre-closure fee is concerned, SBI allows pre-closure either in full or part after full repayment of the first 12 EMIs and charges a fee equal to 3% of the prepaid amount per month. The preclosure fee that other competing banks and FIs charges are quite high as compared to SBI. Banks like HDFC and ICICI are charging preclosure fees as high as 2% to 5% on the principal outstanding amount.
SBI Personal Loans Schemes
SBI Xpress Credit Loan
SBI offers Xpress Credit personal loans for both Permanent Salaried and Non-Permanent Salaried applicants. A salaried applicant can be anyone, an employee of Central / State Government, Quasi-Government, Central / State PSUs, Educational Institutions of National Repute, Selected Corporates who have an existing business relationship with the Bank and Corporates who do not have a business relationship with the Bank as well as do not have ECR.
With SBI, a salaried applicant can avail of the minimum amount of Rs. 25,000 to maximum Rs. 20 Lacs. However, the maximum amount cannot be more than 12 times of Net Monthly Income for school teachers and 24 times of Net Monthly Income for other applicants. The funds can be availed for a minimum of 12 months to a maximum of 60 months. Apart from it, an applicant doesn’t need to provide any security or guarantee to be eligible for the loan. In this case, the applicable interest rate will be charged based on the External Credit Rating of the employer and the creditworthiness of the borrower.
Currently, SBI charges an interest rate of 10.60% to 12.60% to permanent salaried employees with check-off facility i.e. where the applicant has provided an authority to the bank to collect monthly EMI directly from their employers’.
The interest rate offered to Defence/ Para-Military/ Indian Coast Guard Salary Package Applicants is ranging between 10.60% to 11.10% per annum. Whereas the non-permanent employees of Central and State Government, Quasi-Government, Central PSUs, State PSUs, Defence personnel, Educational Institutions of National Repute are offered an interest rate of 11.50% to 13.60% per annum.
And for the employees of Co-operatives/ Institutions not covered under regular Xpress Credit loan scheme and Unrated Corporates is ranging between 12.25% to 13.85%per annum. As far as the processing charges are concerned, SBI only charges a processing fee equal to 1% of the loan amount.
Documents for Salaried
- Latest payslip / Form 16 / ITR copy as proof of income
- Bank statement of the last 3 months
- KYC Documents with Recent Passport Size Photographs
Documents for Self-Employed
- Business Existence Proof
- Copy of Profit & Loss Documents for last year
- Bank statement of the last 3 months
- KYC Documents with Recent Passport Size Photographs
SBI Xpress Elite Loan
SBI is also offering a personal loan to the borrower based on the applicant having an existing SBI Salary Account Package or maintaining the relationship by any other means. An applicant can avail personal loan of a minimum of Rs. 25,000 to maximum Rs. 20 Lacs, subject to a maximum of 24 times of the Net Monthly Income. If the borrower is a school teacher by profession, then he/she can avail personal loan maximum of up to 12 times of their Net Monthly Income only.
The interest rate charged in Xpress Elite personal loan varies depending upon the credit score of the applicant. An applicant maintaining SBI Salary Account with a credit score of 800 or above is offered an annual interest rate of 9.60%, and interest of 11.10% per annum to an applicant maintaining a credit score of 600 to 699.
The applicants maintaining a relationship with SBI other than SBI Salary Account Package can avail a personal loan with an annual interest rate of 9.85% if maintaining a credit score of 800 or above, and 11.35% per annum if the credit score is between 600 to 699. The repayment period offered on Xpress Elite personal loan is the same as Xpress Credit, ranging from a minimum of 12 months to a maximum of 60 months, and charges a one-time processing fee equal to 1% of the loan amount.
Documentation for Xpress Elite Loan
- Documents for SBI Salary Package A/c
- Latest payslip / Form 16 / ITR copy as proof of income
- Bank statement of the last 3 months
- KYC Documents with Recent Passport Size Photographs
SBI Pensioner Loan (including PAPNL-Pre Approved pension Loans)
SBI also offers personal loans to pensioners including Defense pensioners and family pensioners. Currently, SBI offers a personal loan of a minimum of Rs. 25,000 to maximum equal to 18 Months’ Pension. If pensioner age is 72 years at the time of loan sanction then the applicant can avail a maximum of Rs. 14 Lacs. If the age is between 72 years to 74 years then the maximum loan amount is limited to Rs. 12 Lacs. The pensioner between the age of 74 years to 76 years can avail an only a maximum of Rs. 7.50 Lacs.
In the case of Defense Pensioners, an applicant is offered to maximum loan amount equal to 36 Months’ Pension. A Defense Pensioner up to the age of 56 years can avail a maximum of Rs. 14 Lacs, subject to a maximum 36 months pension. Defense Pensioner between the age of 56 years to 72 years can avail a maximum of Rs. 12 Lacs, subject to an equal to 18 monthly pensions. Defense Pensioner between the age of 72 years to 74 years can avail a maximum of Rs. 12 Lacs, subject to equal to 18 months pension. A defense pensioner between the age of 74 years to 76 years can avail a maximum of Rs. 7.50 Lacs or equal to 18 months pension.
In the case of Family Pensioners, the maximum amount an applicant can avail is limited to 18 months’ pension. If the applicant is 72 years at the time of loan sanction, the maximum loan amount is limited to Rs. 5 Lacs. A Family pensioner between the age of 72 years to 74 years can avail a maximum of Rs. 4.50 Lacs only and between the age of 74 years to 76 years is limited to only Rs. 2.50 Lacs.
The interest rate offered to pensioners including defense pensioners and the family pensioners is 09.75% to 10.25% per annum with one time repayment period of 1% of the loan amount. And, the repayment period is a minimum of 12 months to 60 months.
Documentation for Pensioner Loan:
- Copy of Pension Account Documents
- Bank Account Statement for last 6 months
- Signature Verification Proof
- KYC Documents with Recent Photographs
SBI Personal Loans Fees & Charges
| Type of Charges | Applicable Charge |
| Processing Charges | 1% of the loan amount |
| Prepayment Charges | 3% on the prepaid amount 0% if the loan is closed with the opening of a new personal loan under the same scheme |
| Penal Interest | 2% per annum over the overdue amount 0% if Part EMI is overdue |
The processing charges levied by SBI on personal loan borrower are a maximum of 1% of the loan amount, whereas its competing banks like HDFC and ICICI charges a high processing fee of up to 2.50% of the loan amount.
Apart from the processing charges, the prepayment charges that SBI levies are also way lower than private sector banks like ICICI. SBI only charges 3% on the prepaid amount for pre-closure and nil on a personal loan for pensioners; However, you can only prepay your personal loan after the full repayment of the first 12 EMIs. Whereas competitor banks like ICICI charge a high pre-closure fee equal to up to 5% of the principal outstanding but allow to prepay personal loan anytime with foreclosure method. The part-payment closure is not allowed in ICICI as compared to SBI.
The other best thing about SBI is the flexibility on penal interest. If you’re prepaying your personal loan using part-payment method and got your Part-payment EMI delayed for any reason, then you don’t need to pay any penal interest on your late EMI; However, if your EMIs got delayed during the repayment of the personal loan using regular monthly EMIs, then an additional interest rate of 2% per annum will be levied on you for every month until the late EMI is cleared in full.
FAQs
How much time it will take for the approval of a Personal Loan?
It will take at least 2 to 3 days for the approval of the SBI Xpress Credit Personal Loan.
Is there any special benefit on availing of SBI Xpress Credit Personal Loan?
You don’t have to pay any prepayment charges if the account is closed from the proceeds of a new loan account opened under the same scheme.
Do I have to provide any security to avail SBI Personal Loan?
Security is only necessary in the case of SBI Personal Loan for Family Pensioners, where you have to provide a third-party guarantee of Spouse eligible for family Pension. In the absence of a spouse, a third-party guarantee of any other family member is worth the loan amount.
Can my spouse’s income be included when calculating the eligible loan amount for SBI Personal Loan?
Yes, the income of your spouse can be included in case he/she guarantees the loan or the loan is applied jointly.
How much Monthly EMI I would have to pay on my SBI Personal Loan?
In any case, Monthly EMI should not be more than 40% to 50% of the Net Monthly Income of the applicant.
Do I have to pay any penalty if my monthly EMI got late? What would be the applicable charges in this case?
Yes, SBI would charge a late payment fee equal to 2% of the overdue amount per annum from the payment due date to the date on which the amount is settled in real.
In case, Part EMI remains overdue then a late payment fee or penal interest should not be charged to the borrower.
Who can apply for SBI Personal Loan?
SBI provides Personal Loan as per the following terms –
- Salaried applicants who are a permanent employees of the below entities.
- Central and state Government
- Quasi-Government
- Central PSUs
- Profit making State PSUs
- Educational Institutions of National Repute
- Selected Corporates who have a business relationship with the Bank
- Corporates who do not have a business relationship with the Bank as well as do not have ECR, subject to certain terms and conditions
- Pensioners of the State or Central Government.
- Defence Pensioners
- Family Pensioners including Defence Family Pensioners.