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Applying for an SBI Personal Loan: A Comprehensive Step-by-Step Guide

Triston Martin

Dec 13, 2023

Financial management is crucial in India, where the middle class employs much of the population. This demographic allocates income to daily expenses and savings. However, savings may not be enough for weddings, college admissions, home purchases, or medical emergencies. In these situations, a personal loan is possible.

SBI offers many private loans to meet various needs. Understanding the application process, loan interest rates, eligibility criteria, and other details can help SBI personal loan applicants.

SBI Personal Loan Eligibility Criteria

Before applying for an SBI personal loan, check your eligibility. The criteria include income, age, employment, and credit score. Typically, SBI looks for applicants who:

  • Age Criteria: Are between 21 and 58 years old.
  • Employment Stability: Hold a stable job with a reasonable income.
  • Credit History: Possess a strong credit background.

Features of SBI Personal Loan

The appealing features of SBI personal loans are tailored to meet diverse financial needs. Loan quantum is essential, with SBI offering up to 20 lakhs. The higher ceiling benefits those in need of significant financial assistance.

SBI personal loan rates are advantageous. The bank offers low-interest loans, making repayments easier for borrowers. The interest is computed on a daily diminishing balance, which may reduce interest costs.

Customers can get help processing charges from SBI. The bank waives Personal loan processing fees 100% until January 31, 2021. This waiver significantly reduces loan upfront costs.

SBI emphasizes simplicity in documentation, requiring little paperwork to process loan applications. This method increases process efficiency and usability.

For SBI, transparency is essential. The bank guarantees their loan services have no hidden fees, ensuring transparency and customer confidence.

SBI allows returning customers to get a second loan, making it easier to earn extra money. The bank also offers personal loans without collateral or cosigners, making them more accessible.

Types of SBI

SBI Kavach Personal Loan

The SBI Kavach Personal Loan is designed to fund COVID-19 treatment. This loan is available to people seeking COVID-19 medical assistance for themselves or their families. The main traits are:

  • Loan Amount: Maximum loan amount: ₹5 lakhs.
  • Interest Rate: The loan has a competitive 8.50% annual interest rate.
  • Moratorium: You are exempt from Equated Monthly Installments for three months.
  • Application Process: It's streamlined and responsive, considering the urgency of medical needs.

SBI Xpress Credit

For salaried employees looking for a personal loan, SBI offers the Xpress Credit Loan. This loan caters to stable-income people, offering a significant loan amount with flexible repayment options. Key details include:

  • Maximum Loan Amount: Eligible borrowers can avail up to ₹20 Lakhs.
  • Repayment Tenure: The loan provides a repayment period of up to 6 years.
  • Interest Rates: The SBI personal loan interest rate for Xpress Credit varies between 10.6% and 13.85% per annum.

Pre-Approved Personal Loans via YONO

SBI's Pre-Approved Personal Loan, accessible through the YONO app, offers a swift and hassle-free loan experience to existing SBI customers. This option is perfect for those who have already built a banking relationship with SBI. Features include:

  • Instant Loan Approval: Complete four simple steps in the YONO app for quick approval.
  • Competitive Interest Rates: The loan comes with an interest rate ranging from 9.60% to 12.60% per annum.
  • SMS Application: Check your eligibility by sending “PAPL” to 567676.
  • No Branch Visits: The entire process can be completed digitally.

Quick SBI Personal Loan

The Quick SBI Personal Loan is explicitly designed for salaried individuals who do not have an account with SBI. This loan aims to extend financial assistance with ease and speed. Highlights include:

Maximum Duration: Borrowers can repay loans in 72 months.

Interest Rate: The loan's annual interest rate is 10.85%–12.85%.

Processing Fee: 1.50% of the loan amount, minimum and maximum.

Second Loan: Under certain conditions, borrowers can get a second loan.

This SBI personal loan is convenient for salaried individuals without a bank account.

SBI Pension Loan

SBI's Pension Loan targets retired defense personnel, family pensioners, and central and state government retirees. This loan addresses the elderly financial needs. Key elements are:

  • Loan Amount: The maximum loan amount for defense and government pensioners is ₹14 Lakhs, while family pensioners can borrow up to ₹5 Lakhs.
  • Repayment Period: Defence pensioners can repay for 84 months, while others can repay for 60 months.
  • Interest Rates: Competitive rates ranging from 9.75% to 10.25%.
  • Special Offers: 50% concession in processing fees available until a specified date.

How to Fill Out an Online SBI Personal Loan Application

Applying for a Personal Loan on SBI

SBI personal loans are obtained by visiting the company's website. Find the private loan division upon arrival. Alternative: use the website's search feature to enter "SBI personal loan." You can get SBI's loan details directly here.

Loan Selection

Before applying for an SBI personal loan, you must compare loan options. Multiple essential factors must be considered throughout this process.

The SBI personal loan interest rate, loan amount, repayment period, and processing fees should be considered. By carefully comparing these factors, you can find a loan that meets your financial needs. Making an informed financial decision is the main focus of this stage.

Completing the Application Form

Select the SBI personal loan that meets your needs and click "Apply Now" or "Online Application" on the website. This takes you to the online application form. You must provide accurate information. This includes your identification, employment, income, and loan amount. Precision is essential at this stage to ensure a smooth loan application.

Submitting Mandatory Documents

SBI requires certain documents from salaried and self-employed individuals seeking personal loans. A completed loan application and two recent passport-sized photos are required. This underpins your application.

Multiple documents are accepted for identity verification. Your passport, Voter ID, PAN card photo, driver's license, and Aadhaar card are needed. Each is a reliable identification method.

Proof of residence is also necessary. Provide a recent photocopy of your phone or electricity bill to meet this requirement. Salary-paid employees must also submit six-month bank statements showing salary deposits.

Self-employed people must provide their last two years of ITRs and bank statements. These documents help SBI assess your financial solvency and residential continuity, which is crucial to personal loan approval.

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