SBI Personal Loan Rates for 2018
Personal loans are easily available, guarantor-less unsecured loans that can come handy in meeting many of life’s sudden and unforeseen financial needs. Maybe someone in your family falls sick and urgent funds are required for medical treatment, or a vacation plan that requires cash?
SBI, a Fortune 500 company and the largest lender in public sector has a personal loan called Saral, as the answer to your questions. It is easy to obtain and you have to submit KYC documents and proof of income to get it disbursed within few days.
The purpose behind a personal loan can be anything e.g. meeting any financial liability, expenses for domestic or foreign travel, medical treatment of a family member, such as marriage of son/daughter, defraying educational expenses of wards etc.
Who can apply for SBI personal loans?
Any Indian salaried individual employee of a corporate, government or PSU, self-employed engineer, doctor, architect, chartered accountant, are eligible. The personal loan limit would be determined by your repayment capacity and income.
Loan amount, fees and other requirements
- SBI personal loan allows a minimum amount of Rs. 24,000/- to be borrowed in metro and urban centers, for rural/semi-urban centers it is Rs. 10,000/-. The upper limit of personal loan is 12 times net monthly income up to Rs. 10 lakh for salaried individuals and pensioners.
- SBI charges processing fees which are usually 2.02%-3.03% of the loan amount.
- There is no prepayment penalty for repaying the loan before the tenure.
- SBI personal loans require little paperwork for existing customers. Other important documents to be furnished while applying for a SBI personal loan include a passport size photograph and the signed form. Salaried individuals have to submit latest salary slip and Form 16 from the employer.
Interest rates for SBI personal loans
SBI personal loan interest rate is based on the Benchmark Prime Lending Rates (BPLR) that are influenced by repo rates announced by RBI from time to time. With effect from November 2013, SBI the BPLR unchanged at 14.75%.
Personal loans due to their unsecured nature are charged higher rates of interest. It is not unusual to see borrowers of personal loans being charged 15% and upwards by SBI. However, for the latest rates, you have to approach the bank.
In March first week of 2015, RBI reduced the key repo rate by 0.25 per cent to 7.5 per cent. It is expected that SBI and other banks will follow suit and reduce interest rates on their loans because the repo rate is the rate at which banks source their funds from RBI. A similar cut in January this year had seen RBI bringing down repo rate to 7.75 % pa.
To know more about personal loan interest rates click here
Easing of interest rates will result in many customers availing personal and other type of loans and is expected to facilitate credit expansion in the country.