Are you confused about whom to reach out to for an SBI personal loan? If you are looking forward to applying for an SBI personal loan, you are definitely in the right place. Let’s find out how you should proceed.
State Bank of India offers a range of personal loan products to different categories of their customers. In India, the most common forms of personal loans are loans against salary, loans against fixed deposits and other securities and loans against pension.
These are the 3 basic types of personal loans prevailing in the Indian financial market. Though, you may have seen many other non-financial institutes also provide personal loans on online platforms in a number of mobile apps.
Let’s see about SBI personal loans in particular. What is the basic necessity that is required in order to avail yourself of these loans?
Types of SBI Personal Loans
State Bank of India, the Country’s largest bank offers a variety of personal loans under different categories. It may be a personal loan against salaries such as Xpress Credit and a pension loan. Others are loans against fixed deposits, mutual funds, gold and gold bond. Even the bank has personal loans against shares and debentures.
SBI Xpress Credit Loan Eligibility Criteria and Documents Required
Xpress credit is a type of unsecured personal loan that can be availed by Central/State government employees, PSUs employees and many other universities against their salaries.
Product details-SBI Xpress Credit
| Eligible for salaried persons working in State/Central government organisations, PSUs and universities. |
| No security or collateral is required. |
| No third-party guarantor is required. |
| Maximum loan amount ₹20 lacs or 24 times Net monthly income whichever is lower. EMI/NMI ratio is set at 50 percent. It may go up to 60 per cent for elite customers. |
| The rate of interest is between 9 to 13 depending on the type of account and CIBIL score. |
| The maximum loan tenure is 72 months. |
| Prepayment penalties of 3 percent of the amount paid. |
| Processing is minimal only 1.5 percent excluding GST. It’s waived from time to time. No processing fee for defence personnel. |
Check Eligibility
Eligibility criteria are that the person has to have a confirmed service or a minimum of 1 year served in the organization.
CIBIL score does make a lot of difference as there is a benchmark and decisive factor in getting a loan sanctioned for each category depending on the nature of the department.
State government employees have to have a minimum CIBIL Score of 650 otherwise it marks them as ineligible for the said loan. For defence personnel minimum CIBIL score is 600.
So make sure your CIBIL score is in line with the bank’s terms and conditions.
Documents requirement
Documents requirements are minimal. Form 16 or ITR has been waived recently. All you need to produce are as mentioned below
| 1 | Department ID card. |
| 2 | Your KYC documents. * |
| 3 | The latest 6 months’ salary slips. |
| 4 | Joining letter or appointment letter. |
*KYC document requirements are as per RBI guidelines. Without it, you would not be able to open any kind of account including a loan account. Make sure your IDs are proper and updated. Below is the list of IDs that are accepted by banks for verification of ID and address.
| 1 | Aadhaar card. |
| 2 | Voter card. |
| 3 | Driver’s licence. |
| 4 | Passport. |
Note that the PAN card is neither ID proof nor accepted as address proof. PAN serves only for tax purposes and it’s a mandatory document in every account.
How to apply?
It’s easy to apply nowadays. SBI has made it quite simple for everyone. You may choose online which can be done through SBI internet banking or YONO. An offline application can be done as well by visiting the bank.
To download YONO click here
The benefit of applying online is that you might get to know instantly your eligible loan amount. Else you need to visit the branch after applying online. But you will get an in-principal approval letter along with the reference number which you need to show to your bank.
You can apply for SBI personal loan here.
If you do not have internet banking or are uncomfortable accessing YONO or the internet, visit along with the required documents and meet the right person at the bank.
Loans and advances in the bank are dealt with by FO (field officer) or branch manager whom you need to ask and meet to do your task
SBI Xpress Flexi- An Overdraft Loan For a Salaried Person
A personal loan overdraft for a salaried person. If your monthly income is ₹50000 and above, you can get this quick loan to meet your fund requirement. SBI Xpress Flexi personal loan is offered to employees of the following organisations-
| 1 | Central/ State/ Quasi Governments, |
| 2 | Central & State PSUs |
| 3 | Defence/ Central Armed Police/ Indian Coast Guard, |
| 4 | Corporates (Private & Public Ltd.) |
Bank offers a minimum of ₹1 lakh and a maximum loan amount of ₹25 lakhs overdraft facility at reducing drawing power. This means, instead of paying a regular EMI, the overdraft limit will be reduced every month till it becomes nil.
SBI Pension Loan Eligibility Criteria and Documents Required
Another type of personal loan is in the form of demand loans for senior retired persons. SBI pension loan is quite common among pensioners.
| Prepayment penalties of 3 per cent of the amount paid. |
| No security or collateral is required. |
| For self-pension, no third-party guarantor is required. For a family pension, a guarantor has to be arranged. |
| In the case of self-pension, a maximum loan amount is ₹14 lacs or 18 times the Net monthly income whichever is lower. For family pension, the eligible amount is restricted based on the 33 per cent of the EMI/NMI ratio. This means, though the eligible amount is 18 times NMI, the loan will be sanctioned according to EMI/NMI ratio which cannot go beyond 33 per cent. |
| The rate of interest is between 9 to 12 depending on the type of account and CIBIL score. |
| The maximum loan tenure is 72 months. |
| Prepayment penalties of 3 percent of the amount paid. |
| Processing is minimal only 1.5 percent excluding GST. It’s waived from time to time. No processing fee for retired defence personnel. |
Check Eligibility
Retired persons of Central and State Government employees are eligible under the SBI Pension Loan scheme.
CIBIL score does make a lot of difference as there is a benchmark and decisive factor in getting a loan sanctioned for each category depending on the nature of the department. Pensioners have to score a minimum CIBIL score is 600 to be eligible for the scheme.
So make sure your CIBIL score is in line with the bank’s terms and conditions.
Documents requirement
Documents requirements are minimal. Form 16 or ITR has been waived recently. All you need to produce are as mentioned below.
| 1 | Your KYC documents of self and spouse. |
| 2 | PPO Book |
| 3 | Pension slip in case your pension is paid by other agencies. For SBI pensioners, the bank does not ask for pension slips. |
| 4 | PAN Card |
Conclusion
Getting SBI personal loan is easy but sometimes it takes time due to a rush in the bank or insufficient documents. But if you prepare well before you present yourself, things might turn up your way and you might be able to avoid rejection of a proposal.
Look out for the eligible amount, rate of interest, the tenor of the loan, processing fee, and loan insurance if requires. All these matters because ultimately you are the person who is going to pay.
Make sure your name, DOB and address are okay on your IDs and PAN cards. That would do away with the chances of getting your proposal rejected.
The rest is good and you may get your loan proposal processed with ease.
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