Wishes keep everyone engaged into their strategy and action till the time they are fulfilled at best, don’t they? Out of the blue moon, you suddenly want to explore the picturesque locales of Australia and elsewhere in the world. Also. you saw someone in the office using the all-new iPhone and want to have the same ASAP. And so, there are many other wishes that do the rounds in the minds of people.
But a wish without a proper fusion of finance is inconsequential and falls flat, much to the dismay of many who sets big dreams. This is the time when a personal loan comes as a huge support by providing you the finance needed to fulfill your wishes. And if you ever have to choose a bank for a personal loan, press the button of State Bank of India (SBI), which welcomes you at over 24,000 branches across the country for your personal loan needs. Are you in SBI Personal Loan Apply mode now? Not yet, you will be when you get to know of the attractive loan offers in this article.
SBI Personal Loan Details Explained Here
So, what do you want to know the most in SBI Personal Loan? Many will yell at the interest rate as it decides to a great extent the kind of repayment future you will have for as long as 5 years, the maximum time for which a personal loan can be granted. Interestingly, SBI’s interest rate offers are based on the category of borrowers, their profession and others. There are 2-3 types of personal loan the public lender offers to the customers. Among them, the popular one is undoubtedly the Xpress Credit Loan, besides having a customized loan for pensioners. Xpress loan is for the salaried employees working in both public and private sector units, as well as self-employed. The interest rates in Xpress Credit Loan range from 11.90%-15.15% per annum. While for the pensioners, the bank keeps an interest rate of 12.45% per annum.
SBI Personal Loan EMI Calculation on Your Fingertips
Better late than never, a phrase you must have heard a lot, right! In a similar vein, I exhort you to quickly asses the EMI on your personal loan, else there can be difficulties right throughout the time for which you would be under the debt. The good thing is that the amount of installment can be calculated very easily via the EMI calculator, which requires you to enter loan amount, Personal loan interest rate and tenure to do so. So, if you are looking for a personal loan of ₹7 lakhs from SBI, the EMI is likely to be ₹15,536-16,708 over the course of 5 years at the rate of 11.90%-15.15%.
A Glance at Loan Amount & Eligibility
The minimum loan amount offered is ₹25,000, with the maximum likely to be 24 times Net Monthly Income (NMI) to a limit of ₹15 lakhs. A borrower must have a minimum NMI of ₹5,000 to be awarded with a personal loan from SBI. Also, the proposed EMI must not constitute more than 50% of the NMI of a borrower. And guess what, you can even get a second loan after the first loan completes a year of disbursement. For this to happen, it is essential to have a spotless repayment record in the first loan.
Charges You Need to Keep in Mind
A personal loan does come with a few costs to bear on the part of the borrowers. As soon as you apply, the bank executive will quote a processing fee, which can be 0.5% of the loan amount plus applicable GST. Just in case, you made a default during the loan servicing period, a penal interest of 2% would be charged over the normal rate. It is possible you would like to pay off the outstanding loan balance before the completion of the tenure. But before you avail such an option, beware of 3% charge which will be levied on the outstanding loan balance. Applicable GST will also be charged on the prepayment fee.
Documents to Submit
You should submit the following documents to get a green signal from SBI for a personal loan. These documents include –
- Signed application form with recent passport size photographs affixed on the same
- Identity Proof – PAN Card/Aadhaar Card/Voter ID/Passport or any other document supporting your identity
- Residence Proof – Aadhaar Card/Passport/Voter ID/ Utility Bills or others
- Income Proof – Latest Salary Slips, Form 16 for Salaried, Bank Statement, Latest ITR for Self-employed
- Processing fee cheque
I suppose you are now ready to bite the bullet of SBI Personal Loan after knowing the attractive offers it has to fulfill your wishes. However, before applying for a loan, do ensure your income is strong enough to suffice the payment of EMI as well as other expenses. These may seem small due diligences but can help maintain a strong financial health of a borrower.