|Interest rate||12.50% - 16.60% p.a.||11.20% - 16.30% p.a.|
Maximum: Rs.15 lakh
Minimum: Rs.5 lakh
Maximum: Rs.1 crore
Minimum: 6 months
Maximum: 48 months
Minimum: 12 months
Maximum: 48 months
|Lowest EMI||Rs. 2,658 per lakh||Rs. 2,594 per lakh|
|Processing Fee||2.02% to 3.03% of the loan amount||2-3% of the loan amount.|
Minimum: 21 years
Maximum: 58 years
Minimum: 21 years
Maximum: 65 years
|Prepayment Charges||Allowed after 0 EMI's, Nil Prepayment Charges||Allowed after 6 EMI's, Nil Prepayment Charges|
|Foreclosure Charges||Allowed after 1 EMI's, Nil prepayment charges||Allowed after 6 EMI's, Nil prepayment Charges|
State Bank of India (SBI)Personal Loans are offered to self-employed individuals and salaried individuals as well as those involved in business and are aimed at fulfilling needs personal or otherwise that are not covered under traditional loan schemes. In short, personal loans from SBI can aid in expenses that haven’t actually been planned in advance. Personal loans from State Bank of India are readily available through minimal documentation, at no security/guarantor and prepayment charges.
EMIs or Equated Monthly Installments are the way in which any personal loan from State Bank of India will need to be paid back. Each EMI consists of a portion of the principal amount as well as the interest. As the maturity year draws closer, the principal portion gradually increases and simultaneously the interest portion decreases.
The method for calculating the EMI on a personal loan can be mentioned as follows -
E = P*r*[(1+r)^n/((1+r)^n-1)]
Here E - Monthly EMI, r - rate of interest per month, n - number of years.
For a ballpark figure of Rs. 1,00,000 at an interest rate of 12.85% with a loan tenure of 1 year, the first EMIs for the first year would total out at Rs. 44,623 out of which the interest will account for Rs. 4,504.
For example, the following will be the amortization table for a personal loan of Rs. 10,00,000 for a period of 3 years at an interest rate of 12.85% from State Bank of India (starting from August 2018) -
|Year||Total Payment (INR)||Balance (INR)||Principal Portion (INR)||Interest Portion (INR)|
With a period of repayment exceeding 2 years, the annual total of EMIs might not change for some subsequent years, while the principal and interest amounts in a year will keep varying.
The principal portion keeps increasing and the interest portion keeps decreasing till the loan gets paid off completely.
SBI personal loan interest rates can change for any individual who has been approved for availing a personal loan. The approval process might be dependent on several factors such as -
In spite of the above factors, any change in the advertised interest rates is at the sole discretion of the bank.
Preferential rates on personal loans are more feasible when considering a better CIBIL score. Along with a credit history report, scores from CIBIL play a pivotal role in furthering the case of getting a personal loan approved from State Bank of India. CIBIL scores range from 300 to 900 and a score above 750 is considered a good one. Scores above 750 might allow the bank to consider offering a better rate of interest to the customer. Else the rates might be higher than expected. Checking the CIBIL score and getting it to a figure that’s acceptable is a good way to expect better rates from banks.
Availing a personal loan from State Bank of India is easy for individuals who meet the base minimum eligibility criteria, however, the following points should be borne in mind -
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