People these days opt for loans when they require emergency funds. Here the borrower is provided with a requested amount on an urgent basis. Loans are of 2 types secured and unsecured. Secured loans are where the applicant or borrower is expected to deposit collateral as security to the lender. Unsecured loans are where the applicant can get by, without providing any kind of collateral. The borrower can request a loan to buy their dream car, furnish their house or combat medical emergencies. Thus segregating the procedure into Personal loans, Car loans, Home loans and Gold loans.
Out of all the loan types, here in this article, we are going to focus on personal loans and the application process. Personal loan belongs to the unsecured loan type. In this loan, the applicant is not required to deposit any collateral. It has low-interest rates and can be borrowed by both employed and businessmen. Personal loans are approved if the applicant earns a monthly income of 5 thousand and above. SBI Personal Loan is said to be the best kind of personal loan in the market. The bank offers a great variety of features and benefits. The application process is also quite simple. Let’s begin with further details.
Features of a personal loan – SBI
Let us look at the features of an SBI personal loan.
Low-interest rates
The interest rates assured in this type of loan are low compared to other loans. The rates remain the same irrespective of the changes that may occur in the market. The low rate of interest ensures that the EMI repayment amount and your tenure do not change. This is because it does not require any collateral. SBI personal loan interest rate starts from 9.60% p.a onwards.
Multiple or versatile uses
A personal loan does not have any limitations. You can take a personal loan to conduct a marriage, repay a debt, buy any kind of appliance or even in medical cases. At times people also sponsor their child’s education using a personal loan.
Quick process
Compared to other loans, a personal loan requires the bare minimum in the documentation process. Thus the waiting period is short. One can also apply online for a personal loan at chosen lender by going to their website. If the lender sees fit, they will transfer the money to your account in a span of 24 to 72 hrs.
Flexible tenure
Personal loans are one of the loans wherein the bank takes into consideration your comfort for the time required, to repay the loan amount. Usually, a bank grants you a period of somewhere between 12 months to 7 years.
Flexible loan amount
Personal loans are the most flexible in the sense of providing adequate amounts. Normally any lender who approves you with a personal loan offers you an amount up to lakhs. Banks can grant you a loan amount starting from 20 thousand up to 25 lakhs.
Eligibility Criteria for a Personal Loan – SBI
Now that we are aware of the features presented let us check the criteria that make you eligible for the personal loan at SBI
- You must be at least 21 years but not above 60 years in age.
- A monthly salary of a minimum of 25thousand is what you must earn
- Salaried employees and self-employed both can opt for the SBI Personal Loan type.
- Minimum of 700 credit score. It signifies that you are a sincere applicant.
Pro tip: Since SBI provides different types of personal loans, the criteria keep on changing according to the loan type.
Documents required
The documents required for an SBI Personal loan are:
- Pan card, Aadhar card, Voters ID, Driving license, Passport as identity proof
- Aadhar card, Passport, Utility bills such as Electricity / Telephone bill as address proof
- Salary slip, ITR forms, and Bank account statements as proof of income
How to apply for an SBI Personal Loan?
Let us now understand the process that you need to go through while applying for a personal loan with the State Bank of India.
- Search and open the State Bank of India’s official website.
- Search for the Personal loans category (under the “Loans” tab)
- Understand which personal loan type you require.
- Once you decide, click on the “Apply now” option.
- Fill in the details that are made mandatory by the bank.
- After filling up, click on the “Submit” option.
A representative from the bank will get in touch with you accordingly. And if they find you eligible, the loan amount will be transferred within 2-3 business days
Pro tip: You can apply for a personal loan at SBI through its online app YONO or by visiting the nearby branch.
Types of SBI Personal Loans
Since personal loans are used for various reasons, SBI bank has created several different categories under personal loans. They are as follows
SBI personal loan for Pensioners
As the name states, this loan is designed for people who are family pensioners or somebody from the Central or State Government or defence personnel. They need to be below 76 years. The bank gives a tenure of 84 months to defence personnel and 60 months to those Central or State government pensioners. The rate of interest for them is 9.75% to 10.25% p.a. A concession of 50% to the pension loan amount is available.
SBI personal loan – Xpress Credit
This is especially for salaried employees. They need to have a salary account with SBI bank to apply for this loan. They are given a tenure of 6 years for repayment. The rate of interest varies between 10.60% to 13.85% p.a. They can borrow at least 20 lakhs as the loan amount.
SBI Quick Personal Loan
This loan is valid for those salaried employees who do not have any salary account with SBI. Even in this loan, the maximum loan amount you can request is 20 Lakhs. The tenure issued here is also the same, 6 years. However, the rate of interest changes. It varies from 10.85% to 12.85%. The processing fee charged here is 1.50% of your loan amount.
SBI Kavach Personal Loan
This is a special loan scheme for those who need help with financing anything related to Covid treatments. You can avail of up to 5 lakhs as a loan amount. This loan offers a low rate of interest, starting from 8.50% p.a. It gives you a tenure of 5 years.
SBI Pre-approved Personal Loan
It is also called PAPL. In this loan, your loan is quickly approved. You can apply for it through the SBI’s official website or the YONO app. It has a low processing fee. There is no need for documentation. The rate of interest offered starts from 9.60% p.a.
Personal loans are the most flexible and preferred loan schemes. It offers a great deal on the rate of interest, tenure and the amount. The State Bank of India is one of the best banks to offer attractive deals on personal loans both online and offline. Here’s hoping that the article was useful enough, providing all the necessary guidance. Do make sure to conduct your own research before proceeding with the application process.
