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Interest Rates & Processing Charges on SBI Personal Loans

Overview

SBI is one the leading and most trusted bank of India, offers personal loans from minimum Rs. 25,000 to maximum Rs. 15 Lacs.

SBI Personal Loan Rate of Interest


Although, the personal loan interest rate in sbi is linked to 2 Years MCLR rather than 1 year MCLR as in case of most of its competing banks, the interest rates offered by SBI is still comparatively lower.
SBI offers low interest rates, starting from 11.05% per annum onwards, to personal loan borrowers who are eligible under Xpress Elite scheme and holds SBI Salary Package Account. Apart from it, low interest rate is also offered to central/state government employees including defence and paramilitary who are holding salary package accounts such as Central Government Salary Package (CGSP), State Government Salary Package (SGSP), Defence Salary Package (DSP) or Para Military Salary Package (PMSP) as compared to other borrowers.
Additionally, the borrower can also receive 0.50% concession on interest rate if he/she have availed loan amount equals to Rs. 10 Lacs and above, or if have check-off tie-up with sbi. Apart from these, sbi also offers low interest rate of 12% to pensioners.
Before applying for personal loan in sbi, you must consider the few factors such as credit score, credit limit on existing credit card, organisation you are working for, balance transfer on sbi credit card and existing relationship with sbi, which plays a great role when it comes to avail low interest rates on sbi personal loans. Moreover, the personal loan eligibility for sbi is another aspects which defines if the bank will cater you or not.

Type of Charge Applicable Charges
Defence Personnels, Employees of Paramilitary and Indian Coast Guard 12.05% to 12.55% (per annum)
Permanent Government Employees 11.55% to 15.05% (per annum)
Non-Permanent Government Employees 12.95% to 15.30% (per annum)
IT Employees 13.45% to 15.45% (per annum)
Salary Account Holders 11.65% to 13.80% (per annum)
Applicant withdrawing SBI Salary Package Account or by any other means 11.05% to 12.80% (per annum)
Pensioners 12% (per annum)
Top-up Loan 12.15% (per annum)
Pre-Approved Loan 14.15% (per annum)

SBI Personal Loan Interest Rate for Defence Personnels, Employees of Paramilitary and Indian Coast Guard


SBI offers low interest rate to the borrower who are a working employee of defence, paramilitary and indian coast guard service and withdraw their salary through SBI Defense Salary Package (DSP) account, SBI Paramilitary Salary Package (PMSP) account or SBI Indian Coast Guard Salary Package (ICGSP) account respectively, as compared to other competing banks like HDFC. The respective borrower can get personal loan at annual interest ranging between 12.05% to 12.55%.

- SBI Personal Loan Interest Rate for Government Employees (Permanent)

A permanent employee of government organisation or a national education institution, is eligible to avail personal loan from sbi bank under SBI Xpress Credit loan and offered interest rate ranging from 12.05% per annum to 15.05% per annum.
If the eligible applicant either have check-off tie-ups with the sbi bank or availed loan amount above Rs. 10 Lacs, then he/she will be offered a concessional interest rate of 11.55% per annum to 14.55% per annum.
Whereas, its competitors like Canara bank offers personal loan to government employees at comparatively high interest rate ranging from 12.90% to 13.90% per annum, except if the borrower is a BSNL Employee. However, the Andhra bank offers the same at interest rate as low as 11.75% to 12% per annum if the employee is withdrawing salary through Andhra bank.

- SBI Personal Loan Interest Rate for Non-Permanent Government Employees

A non-permanent employee working in a government organisation including defence personnels, is also eligible under Xpress Credit scheme and offered interest rate ranging from 12.95% per annum to 15.05% per annum.
If the applicant is an employee in a co-operative/institutions and not covered under regular SBI Xpress Credit personal loan scheme or a unrated corporate employee, then he/she will be offered a concessional interest rate of 13.70% per annum to 15.30% per annum.

- SBI Personal Loan Interest Rate for IT Employees

If one is an employee working in an IT (Information Technology) organisation, then sbi will offers interest rate ranging from 13.45% per annum to 15.45% per annum.

- SBI Personal Loan Interest Rate for Salary Account Holders

If the applicant is a salaried employee of either a government organisation, national level education institutions or a employee of selected rated private organisation, then he/she is eligible under SBI Xpress Power personal loan scheme and will be offered an interest rate ranging from 12.15% per annum to 13.80% per annum.
SBI personal loan interest rate for perquisites (Check-off) ranges from 11.65% per annum to 13.30% per annum. The same interest rate is also applicable to the borrowers who have applied for loan amount of above Rs. 10 Lacs.

- SBI Personal Loan Interest Rate for Applicants withdrawing Salary through SBI Salary Package Account or by any other means

An applicant who is eligible under SBI Xpress Elite personal loan scheme is offered interest rate ranging from 11.05% per annum to 12.55% per annum, where the applicant is holding an SBI Salary Package Account.
If the applicant is eligible under Xpress Elite scheme but not withdrawing salary through SBI Salary Package Account or a regular salary account, then the applicable interest rate will range from 11.30% per annum to 12.80% per annum.
However, its competitor, Andhra bank offers personal loans to borrowers withdrawing salary through Andhra bank branches at an annual interest rate of

- SBI Personal Loan Interest Rate for Senior Citizens (Retirees)

If the borrower is a retired employee including defence pensioners as well as family pensioners including defence family pensioners who receives monthly pension, then he/she can also avail under sbi personal loan for pensioners and will be offered an interest rate equals to 12% per annum.
Whereas, the interest rate levied by its competitor Canara Bank and PNB, is slightly lower for pensioner loans at 11.80% per annum in case Canara Bank and 11.25% per annum in case of punjab national bank

- SBI Personal Loan Interest Rate for SBI Xpress Credit Insta Top-up Loan

If the borrower is an existing loan customer who have availed personal loan under Xpress Credit Personal Loan scheme, then he/she can also avail additional funds on demand with an interest rate equals to 12.15% per annum.

- SBI Personal Loan Interest Rate for Pre-Approved Personal Loans

If the borrower is an existing sbi customer and availing a pre-approved personal loan, then he/she will be offered an interest rate equals to 14.15% per annum.

SBI Personal Loan Processing Fee & Other Charges


Type of Charge Applicable Charges
Processing Fee 1% of the sanctioned loan amount (0.51% for Pensioners and NIL for Defence Pensioners)
Prepayment Charges 3% on the prepaid amount (NIL if loan is closed with the opening of new personal loan under the same scheme)
Penal/Default Charges 2% per month over the overdue amount.(NIL if Part EMI is overdue)
EMI Bounce Charges Rs. 500 per instance

As for the processing fee and other applicable charges, sbi is much simpler and levies low charges than HDFC Bank, ICICI Bank and other competitors. Being a private sector banks, HDFC Bank and ICICI Bank usually levies a number of charges on their personal loan borrowers. The processing fee levied by hdfc bank goes as high as upto 2.50% and 2.25% in case of icici bank as compared to only 1% for sbi personal loan.

Comparatively, the state bank of india currently charges processing fee equivalent to 1% of the sanctioned loan amount to Non-pensioners. Whereas, in case of pensioners including family pensioners, the processing fee is equals to only 0.51% of the loan amount and zero for defence pensioners including defence family pensioners. Apart from it, there are some other charges applicable such as pre-closure charges and default payment charges as well as EMI Bounce charges.

The pre closure charges for sbi personal loan ranges from zero to 3% of the prepaid amount. If you are opening a new loan account under the same scheme and wants to pre-close the existing loan, then there will be no pre-closure charges applicable on you. Otherwise, a prepayment charge equivalent to 3% of the prepaid amount. Since, sbi charge pre-closure fee is respect of prepaid amount rather than principal outstanding amount unlike its competing banks/FIs such as hdfc personal loan preclosure charges and icici bank personal loan preclosure charges, resulting in low preclosure fee. The hdfc personal loan preclosure charges ranges from 2% to 4% of the principal outstanding amount whereas the icici personal loan preclosure charges and are equals to 5% per annum on the principal outstanding amount. It is important to notice that sbi levies preclosure charges over the prepayment amount resulting in lower prepayment charges as compared to hdfc and icici bank charging over principal outstanding amount. However, few banks doesn't charge any pre-closure fee at all to their personal loan borrowers such as Axis Bank.

Apart from the prepayment charges, sbi also charges an amount equals to 2% per annum in case the borrower has failed to repay his/her monthly EMIs by the payment due date. However, if it part EMI which is due, then there'll be no default charges applicable on the borrower. The same default interest is applicable for hdfc bank and icici bank personal loan borrowers, except that there is no provision of zero default charges.

As far the EMI Bounce charges are concerned, SBI charges a fee of Rs. 500 per instance of failure of payment instrument whereas HDFC charging Rs. 550 and ICICI levying Rs. 400 for the same.

SBI Personal Loan Offers


- SBI Xpress Credit Personal Loan Scheme

Any borrower, either a permanent / non-permanent government employee or a corporate employee of a private organisation / institutions, can avail personal loan under Xpress Credit personal loans by sbi. These borrowers can avail personal loan as low as Rs. 25,000 and as high as Rs. 15 Lacs where any borrower who is applying for a loan amount of Rs. 10 Lacs or above, receives a 0.50% concession in interest rate. However, the processing charges stands at 1% of the loan amount and are collected upfront at the time of loan disbursal.

- SBI Xpress Elite Personal Loan Scheme

This scheme is suitable only for applicants who either holding sbi salary package account or withdrawing salary through sbi branches by any other means even without salary account. The interest rates applicable under this scheme are 0.50% to 2.5% lower than Xpress Credit personal loan.

- SBI Xpress Power Personal Loan Scheme

This personal loan scheme is only suitable for the borrowers who are disbursing their salary through other banks than sbi or receiving it in cash. Similar to the xpress credit lending scheme, a borrower who either have applied for a loan amount of Rs. 10 Lacs and higher or capable to provide check-off authentication, will receive a concession of 0.50% in interest rates.

- SBI Pensioners Loan Scheme

Any pensioner including defence pensioners, either a regular pensioner or a family pensioner can avail personal loan under this scheme. Where the borrowers must either be serving superannuation period or permanently relieved from their services. The interest rate is fixed at 12% per annum for everyone, be it a regular pensioner of a family pensioners. However, the processing charges varies depending upon if the borrower is a defence pensioner or not. For regular pensioners including family pensioners, the processing fee is equals to 0.51% of the loan amount whereas no processing charges applicable on defence pensioners including defence family pensioners.