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.
The eligibility criteria to avail the loan is mentioned below:
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.
Term loan and overdraft are the two types of loan facilities available.
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.
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.
| 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.
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.
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.
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.
A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.
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