Personal loan from State Bank of India
Tips to get a personal loan from banks and how to get a personal loan from State Bank of India
Bank provides personal loan to meet for immediate purposes like personal expenses and other requirements which are needed. Loans are provided at low interest rates with comfortable repayment tenure. Generally, the amount of personal loan ranges between 50000 to 30 Lakhs. For personal loans, any security or collateral is not essential. The process is simple and fast and it is disbursed within a week. Regarding personal loans, banks are least bothered with the money that you use but they are concerned with the ability that the people has to pay back the loan. The process of choosing the best source of personal loan is essential.
Tips to get personal loan from a Bank:
Before you start applying for personal loan, it is necessary to choose the best bank for it.
Check out the banks that provides personal loans in your area.
Gather all relevant information from the branches of the banks in your area and compare among them to choose the best according the money requirements.
Check the EMI per month that you will need to pay and minimum interest rate for the loan.
Compare the prepayment charges and processing fee for different banks. Mostly opt for 0% prepayment charges.
Check the specified information like disbursal time, loan amount and interest rates. The interest rate is one of the important criteria to choose loans. Check whether the loan has flat interest rate or reducing balance interest rate. Flat interest rate is the rate that remains same throughout the tenure of your loan which is quite expensive. Reducing balance interest rate is calculated on the reducing amount of capital. This is best option as it is less expensive.
Find out what are the documents required from each bank. Mostly all banks require identity proof, age proof, address proof, income certificate or current salary slip, job continuity proof and proof of account statement or your banking history.
Prepare the documents as mentioned by the bank.
Guarantor is essential in case of large amount, so arrange for it.
Have a clear picture with representative as what will happen if you cannot repay on time or if you miss an EMI payment.
Be clear on all the above issues before taking the loan.
About SBI Personal Loan
State Bank of India, the largest public sector bank in the country is one of the most preferred banks in India when it comes to personal loans. SBI offers personal loans for both salaried and self employed individuals for immediate financial requirements. State Bank of India does not seek any security or collateral requirements for personal loans. SBI provides personal loans to the financial requirements: Marriage related expenses in the family, foreign travel, health or medical treatment related expenses, personal financial requirements and other miscellaneous expenses. It renders loans at low interest rates and with seasonal offers from time to time.
Advantages of the loan scheme by SBI:
Attractive low interest rates
Timely discounted schemes
Low processing charges, only 2% to 3% of loan amount
No hidden costs or administrative charges
No security required
Fast processing and quick loan approval
Zero prepayment penalties
Reducing the interest burden by charging 1% of the loan amount if you repay the loan before 6 months
Long repayment period of up to 48 months
24/7 Customer support
Specialized loan schemes
Provision of online loan submission
Different types of Personal Loans:
SBI offers four different types of personal loans according to the individual needs.
- Xpress Credit Personal Loan
This loan provides if one needs cash immediately. The processing charges are low, there are no hidden charges and there is minimal documentation required.
SBI Saral Personal Loan
The SBI Saral Personal Loan is meant to have access to money for payments of vacations, medical bills or even clearing financial liabilities. The processing charges will be between 2.02% to 3.03% of the loan amount.
- SBI Pension Loan / Jai Jawan Pension Loan
This type of a personal loan is rendered to pensioners who are drawing their pensions from central or state government. A nominal processing fee is required.
SBI Festival Personal Loan
This loan is focused in order to celebrate one’s festivals if he/she is in shortage of money.
Objective of the loan
SBI will grant loan for purposes like expenses for domestic or foreign travel, medical treatment of self or family member, meeting any financial liability, educational expenses, meeting margins for purchase of assets.
One is eligible if he/she is a salaried individual of corporate, engineer, doctor, architect, charted accountant, MBA with minimum 2 years standing. People with at least 21 years of age and less than 58 years old are eligible. The employment type should be either salaried or self employed with regular income.
Loan Amount Limit:
Personal loan limit would be based on your income and repayment capacity. The amount limits with minimum of Rs. 24,000 for metro and urban centers and Rs.10000 for rural/semi urban centers. The amount with maximum of 12 times net monthly income for salaried individuals and pensioners subject to a ceiling of Rs. 10 Lakhs in all centers.
Documents of proof of identity, proof of residence and income proof are essential.
Signed application form with photograph
- Processing fee cheque
- Proof of identity: Passport/Voter’s card/Driving license/PAN card and photograph
- Proof of residence: Ration card/Passport/Latest electricity bill/Latest telephone bill/Latest credit card bill bank statements/Last 6 months bank statements
- Documentation for salaried applicants:
- Latest salary slip
- Current dated salary certificate with the latest Form 16
- Documentation for self-employed applicants:
- Latest Bank statement
- Latest Income Tax Returns of last 2 years or Form 16
The loan is repayable in 46 EMI.
Processing charges are 2% to 3% of the loan amount.
1 year to 4 years
No guarantor is required.
16% fixed (SBAR-4.25%). SBAR is currently 11.75%