• SBI Xpress Bandhan Loan 

    State Bank of India’s (SBI) Xpress Bandhan Loan is a form of an unsecured loan that is provided to salaried employees who do have a salary account with SBI. The loan can be availed for general purposes such as foreign travel, medical treatment, tourism, education, marriage, etc. However, individuals cannot avail the loan for speculative activities. You can also look into SBI personal loan for other purpose.

    Eligibility for SBI Xpress Bandhan Loan

    The eligibility criteria to avail the loan is mentioned below:

    • The gross monthly income of the individual must be at least Rs.50,000.
    • Employees working with Educational Institutions of National Repute, Defence Establishments, State and Central Governments, Public Sector Undertakings (PSUs), Quasi Government Bodies, and Select Rated Corporates can avail for this loan facility.
    • Individuals must have a minimum Risk Scoring Matrix (RSM) score.
    • The Equated Monthly Instalments (EMI)/Net Monthly Income (NMI) ratio can be a maximum of 50%.

    The loan is provided to individuals within 2 to 7 days from when all documents are submitted. No security or collateral is required to avail the loan.

    Loan Amount

    Term loan and overdraft are the two types of loan facilities available.

    1. Term Loan:

    Minimum Amount: The minimum amount that can be availed is Rs.25,000.

    Maximum Amount: Subject to a maximum of Rs.15 lakh, up to 24 times of the NMI can be availed.

    1. Overdraft:

    Minimum Amount: Rs.5 lakh is the minimum amount that can be availed by an individual.

    Maximum Amount: The maximum amount that can be availed by individuals is 24 time their NMI. However, the loan amount cannot exceed Rs.15 lakh.

    Rate of Interest

    Type of loan facility availed Marginal Cost of Fund based Lending Rate (MCLR) is 2 years MCLR is spread over 2 years The effective rate of interest without reset
    Term Loan 8.15% 3.50% - 5.15% 11.60% - 13.25%
    Overdraft 8.15% 4.00% - 5.65% 12.10% - 13.75%

    Given below are the list of borrowers who are eligible for special treatment under SBI’s Xpress Bandhan:

    Criteria Discount offered
    If ‘Check-Off’ is provided 50 basis points (bps) in interest rate
    The loan amount is Rs.10 lakh or more 50 bps in interest rates

    The rate of interest is fixed throughout the duration of the loan and does not depend on the MCLR.

    Processing Fee

    The processing fee once the loan is approved is 1% of the loan amount and applicable tax.


    The loan must be paid back in EMIs from the date mentioned on the approval letter. Once all EMIs are paid in full, the liability towards the bank will be closed. However, repayments can also be made by cash or cheque at the bank counters. Post Dated cheques will need to be provided by individuals for repayment if EMIs are taken from a bank other than SBI.

    Pre-Closure of loan

    Individuals can pre-close the loan before the loan tenure ends. However, there will be a 3% pre-closure charge.

    Default on repayment

    In case EMIs are not paid on time, individuals will receive notifications regarding repayment by SMS, email, telephone, post, fax, or third-parties will be appointed in order to collect the outstanding amount. There is a fine of Rs.500 plus applicable tax that is charged every time an EMI is not paid. The rate is not fixed and may vary. In case the EMI is not paid for more than a month, a 2% charge above the normal charge on the outstanding amount is levied as a penalty. However, if part EMI or instalment is overdue, no penal interest is levied.

    Customer Service

    Individuals can get in touch with SBI for any service issues either by calling customer helpline numbers and contacting or writing to the grievance cell at SBI’s local head offices.


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