Usually banks look for a good repayment capacity while providing a personal loan. This could be judged by the bank by taking cognizance of regular income and age of the applicant. The eligible age and the monthly / annual income would also depend on the type of income that the applicant gets – from a job which provides a salary or from a business that a self-employed applicant runs.
If you are salaried, then your age should be between 23 and 58 years, whereas the eligible slab for self-employed persons is between 28 and 65 years of age. The monthly income for salaried people should be Rs. 17000 per month, and higher for people living in metro cities. Since self-employed people have a variable income every month, their turnover should be at least Rs. 40 lakhs per year, and if they are self-employed professionals like doctors or architects, then the minimum eligibility of annual turnover is Rs.15 lakhs. An important parameter for personal eligibility is the CIBIL score, and banks look at a score above 750 to be a par score for a personal loan. Depending on age and income, a personal loan could be for any amount between Rs. 75000 and Rs. 20 lakhs for salaried persons, with self-employed persons being eligible for loans up to Rs. 15 lakhs.
|Providers||Interest Rate||Processing Fee|
|SBI||12.55%-17.65%||1%-3% of the loan amount + applicable Service Tax|
|Axis Bank||11.25%-24%||1.50%-2.00% of the loan amount + Service Tax, as applicable|
|ICICI Bank||11.29%-22.00%||Upto 2.50% of the loan amount + Service Tax, as applicable|
|Tata Capital Bank||11.99%||Starts at 999/-|
|PNB Bank||3.10%-6.10% + MCLR||Upfront fees: 1.80%+ST+Edu Cess|
|Upto Rs. 2 lac: Rs.270+ ST & Edu.Cess|
|Over Rs.2 lac: Rs.450+ST & Edu.Cess|
|For Defence Personnel: Only Upfront fee / No documentation charges.|
|Bajaj Finserv Bank||14.75%||2.25%-3% of the loan amount|
|Fullerton Bank||14%||Upto 6.5% of the loan amount|
|IndusInd Bank||Starting at 11.49%||Upto 2.5% of the loan amount|
|Standard Chartered Bank||Starting at 11.25%||Upto 2.25% of the loan amount|
|Citi Bank||10.99% to 17.99%||0.50% to 3%|
|HDFC Bank||11.29%-20%||Upto 2.5% of the loan amount, subject to a maximum of 25,000 INR and a minimum of 1,000 INR|
|Kotak Bank||Starting at 11.29%||Upto 2% + ST + Other levies|
|HSBC||11.99%||Upto 2.5% of the disbursed loan.|
|Bank of Baroda||11.35% to 14.35%||Rs.1,000 to Rs.10,000|
|Corporation Bank||12.75% to 13.75%||1.50% of the loan amount subject to a minimum of Rs.500/-|
|UCO Bank Personal Loan||11.35% - 11.60%||1% (min. Rs. 750)|
|Union Bank||14.40%||0.50% of the loan amount, Minimum of Rs. 500 plus service tax|
|Bank of India||12% to 14.5%||Rs. 1,000 to 10,000 + S.T.|
|Allahabad Bank||13.10%||1.22% (min. 1228)|
|Canara Bank||12.75% (Floating)||Rs. 1,000 to 5,000|
|IDBI||12.45% (3 months MCLR + 3.90%)||1% plus service tax|
|Bank of Maharashtra||12.75%||1.00% of the Loan Amount (Min.:Rs.1000/-)|
|Andhra Bank||13.05% to 14.30%||Nominal|
|Yes Bank||11.49%||upto 2%|
|Syndicate Bank||14.20% p.a.||0.5% with a minimum of Rs.500 + Service Tax|
|Vijaya Bank||12.5% to 13.5%||0.25% of the loan amount, Max Rs. 10000 plus service tax|
|Indian Bank||12.65% to 13.65%||Rs. 508 to 0.508%|
|Federal Bank||17.25%-35%||Upto 6.5% of the loan amount|
|Capital First||12%||upto 1.5%|
What Is A Personal Loan?
A personal loan is a simple and effective way to tide over a requirement of funds. Unlike other loans which are provided for a specific purpose, the lender of a personal does not ask you for the purpose of the money. The loan, which is unsecured (meaning it doesn’t need any collateral), depends on your credit history and repayment capacity, and its approval or approved amount doesn’t depend on what you will use it for. The approved loan amount is credited to your bank account in total, and the repayment, which begins from the next month, is of a fixed monthly amount called EMI. The two things which would affect the EMI would be the tenure of your loan (which usually is from one to five years), and the personal loan rate of interest you are charged. Whether you are salaried or self-employed, banks have personal loan products designed for you. Students, NRIs, pensioners, and senior citizens can also apply for personal loans, and each of these segments would have different eligibility criteria.
When Would You Need A Personal Loan?
There are several situations in which you could need a personal loan. There might be an impending marriage in the family, a medical emergency could have arisen, there could be substantial college tuition fees to be paid, or you might even be planning to go on a long vacation. Instead of coughing up money for all such expenses at once, you could go for a personal loan and repay over the next several months.
What Are The Pros and Cons Of A Personal Loan?
The biggest advantage of a personal loan is that there is no security involved, which also results in the approval process being much faster. It is a much better (read cheaper) option than taking an advance on your credit card, and if used for the purpose of home renovation, it can also offer you tax deductions for the interest repayment. On the flip side, the personal loan is unsecured and hence carries a much higher rate of interest than car or home loans.
What Are The Things To Consider While Selecting A Personal Loan?
The documentation required for a personal loan is not too detailed, and the approval process too takes a few days only. What you should rather spend time on is in comparing the various rates of interest, the amount you are eligible for, and the other charges that will be levied at the time of application or prepayment (foreclosing the loan earlier than its tenure).
How Can One Finance Help You?
What you need is an experienced and unbiased advisor who can help you with the correct selection of lender and also help with the actual application process when you are not sure how to apply for a personal loan. We will fulfil that role for you end to end, using our deep relationships with all major banks, which gives us visibility to the best personal loan offers. We will help you decide which bank is best for personal loan, we will collect your documents and submit them online or in person, and we will also follow up with the bank. In short, we would be a complete loan consultant to you till the amount is disbursed into your account.
State Bank of India is India’s largest bank, with the biggest network of branches covering every town and city of the country. Because of this extended reach, SBI is able to attract huge deposits, but its loan products are also very popular because of easy availability and very friendly terms and conditions. SBI has a range of personal loans to suit different requirements. These personal loans can help you meet unforeseen expenses which are required quickly.
There are 4 primary categories of personal loans offered by SBI. They are –
The Xpress Credit personal loan is for situations where the loan is required very quickly, and it is available only for employees of certain public sector and private companies. Saral is the conventional personal loan that can be used for a variety of purposes. The Festival loan is provided to meet the additional expenses that many families face before and during festivals. The last category of personal loans from SBI is the Pension Loan which is targeted at SBI account holders who are retired from service, and drawing a certain monthly pension. The loan eligibility is decided on the basis of the monthly pension received, since there is no salary slip and most likely no income tax return either.
The Xpress Credit loan is available primarily to employees of central departments and profit making state departments. Employees of some private companies and reputed educational institutions also fulfil the eligibility criteria. Such employees should have a monthly income at least two times of the calculated EMI, or Rs. 7500, whichever is higher. If you wish to obtain a Saral loan, then you need to be an employee of a reputed company or have at least 2 years tenure as a self-employed professional. The SBI Festival Loan has eligibility criteria similar to the Saral Loan, with just a few changes.
The employees should have at least 2 years of service, and the self-employed professional should have 3 years of work experience. Even people whose only source of income is interest income from bank or Government investment instruments are eligible. The minimum monthly income requirement at Rs. 3000 is lower than that for Xpress Credit. Finally, as the name implies, the personal loan for pensioners is available to pensioned employees of the armed forces, state government or central government. For any of these four categories of loans, the applicant needs to check with the branch regarding top up of an existing loan.
For all four kinds of SBI personal loans, the documents required are quite similar. The applicant needs to prove his identity by submitting any one of the driving license, passport, PAN card, Aadhaar Card or Voter Id card. Similarly, an address proof would be needed, in the form of any document that shows the current address clearly, like Aadhaar Card, passport, utility bill, bank statement etc. The income proof (for both salaried and self-employed professionals) would need to be submitted in the form of updated bank statements, latest salary slips, Form 16 statements or income tax returns, depending on the type of applicant. Additionally two photographs would be needed along with the duly completed application form, and the cheques for processing fee.
Whatever be the type of personal loan applied for from SBI, the interest rates could be either fixed or floating. Both types of calculation are based on the MCLR rate prevailing at the time of approval of the loan. Xpress Credit personal loans have three interest slabs, starting from 330 to 380 basis points above 2 year MCLR and going up to 530 to 580 basis points above 2 year MCLR. At prevailing MCLR, these rates correspond to 12.55% to 15.05%.
For Saral, there is a standard interest rate that is 380 basis points above the prevailing 2 year MCLR. Senior citizens (pensioners) wishing to avail the personal loan for pensioners can be charged either a floating rate of interest or a fixed rate. The floating rate is calculated on the basis of the prevailing one year MCLR rate, while the fixed rate is aligned to the 2 year MCLR. The festival personal loan is charged at 665 basis points above the 2 year MCLR.
When you utilize our services you can take advantage of the depth of our relationship with SBI. You won’t need to visit any of the branches for pushing your application through. We would provide the best guidance regarding the category of loan that would suit your requirements perfectly.