Surprising Facts About SBI Personal Loans In India


The State Bank of India is one of the largest public sector banks. It offers personal loans for day-to- day or personal expenses of individuals. An SBI personal loan is unsecured and can be used for marriage, travel, medical emergency, home repair, or any other purpose. The bank provides attractive rate of interest, varying between 10.15% and 15.15% per year. The tenure is usually 1 to 5 years. Today we will tell you about the types of SBI personal loans and other details about the loan schemes. 

Why Choose State Bank Personal Loan? 

• Online personal loan application available. 
• Transparent charges and procedures. 
• Quick loan sanctioning and disbursal. 
• Lowest rate of interest and loan for retired persons. 
• Minimum processing fees and charges. 
• Dedicated customer care and help for inquiries. 

Documents Required for State Bank of India Personal Loan 

The documents required for a personal loan at SBI are: 

• Fully filled and signed loan application form. 
• Copy of income tax PAN Card. 
• 2 copies or recent passport size photos. 
• Income documents (3 months’ bank statement which displays salary credit and EMI debit, if any. 3 months’ salary slips, and 2 years income tax return proof). 
• Identity proof can be PAN card, passport, driving licence, Aadhar card, or voter ID. 
• Residential address proof can be passport, utility bill maximum 3 months old, or registration proof. 

Types of Personal Loans by State Bank of India 

Below given are details of SBI personal loan and its types. 

1. SBI Xpress Bandhan 

The State Bank of India offers unsecured personal loans to salaried employees who may not necessarily maintain a salary account with the branch. Employees who can avail the loan should be working with defence/state/central government establishments, educational institutions of a national repute, PSUs, Quasi government bodies, or one of the selected reputed corporates. 

A. Loan Amount 

For a term loan, minimum amount one can borrow is Rs. 25 thousand, while maximum is Rs. 15 lakhs. The maximum borrowing amount is same in overdraft, but minimum borrowing limit is Rs. 5 lakhs. Processing fees is one percent of the loan amount with applicable taxes. 

B. Eligibility Criteria 

Type of facility is overdraft and term loan. The net monthly income to EMI ratio must be up to 50 percent. The applicant must draw a minimum gross monthly income of Rs. 50 thousand. 

2. Xpress Credit Personal Loan 

If a person has salary account at SBI, then he/she can apply for SBI Xpress credit personal loan. The employee can be from central PSU, central or state government, profit making state PSU, Quasi government, selected corporate who have business relation with State Bank, educational institutions of reputation. The individual must draw a monthly salary of Rs. 5000 minimum. The EMI/EMI ratio must not exceed 50 percent. Loan amount for term loan is between Rs. 25 thousand and Rs. 15 lakhs. For overdraft facility, minimum loan amount is Rs. 5 lakhs. Repayment tenure is maximum 60 months. 

A. Terms And Conditions For A Second Loan 

There is a provision for a second loan, which can be taken after a year of 1 st loan’s disbursal. The previous loan must be satisfactorily conducted for the sanction the second loan. There cannot be more than two Xpress credit loans ongoing at the same time for a borrower. However, it depends on the overall net monthly income/EMI ratio of 50 percent. There is no security, third party guarantee, and margin. 

B. Fees And Charges 

Processing fee is one percent of the loan. There would be taxes as applicable. Penal interest is 2 percent per annum. It will be charged over and above the interest rate on outstanding amount, for the period of default. In case part EMI or instalment is overdue, penal interest shall not be applicable. Prepayment charges of 3 percent are applicable on prepaid amount if the prepayment is done in part of full before the end term of the loan. No foreclosure or prepayment charges apply if the account closes from the proceeds of the new loan account, established under the same scheme. 

3. Personal Loan For Pensioners 

If a person is employed at state or central government or defence, and drawing pension from SBI account, not more than 76 years old, can avail a pension loan from the bank. Loan amount is between Rs. 25 thousand and Rs. 14 lakhs, depending on the age of the person. Spouse of the passed away pensioner is eligible for the loan, if he/she receives the pension on the behalf. For a family pensioner, the maximum borrowing amount is Rs. 5 lakhs. 

A. SBI Pension Loan Essentials 

This loan applies nominal processing fees. There is no processing fee for defence pensioner. EMI and net monthly pension should not be more than 50 percent. In case of family pensioner, the same should not exceed 33 percent. Maximum tenure is 84 months. Repayment mode is standard instruction to debit the EMI from pension account. 

B. Guarantee and Charges 

Third party guarantee of spouse or an eligible person in the family is required. 3 percent of the prepaid amount (prepayment in full or part before end of term) is applicable as prepayment fees. However no foreclosure and prepayment charges are applicable for accounts closed from the proceeds of the new loan account opened for the same scheme. 

Now that you are aware about State Bank of India personal loan details, you can apply for a suitable loan scheme. Make sure to keep your frugal finances and bootstrapping business budgets in mind!


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