Multiple banks. Different interest rates. Call it a "conflict of interest".

SBI Personal Loan Interest Rates 2019

SBI offers personal loans at competitive interest rates, for salaried person range is: 11.05% – 17.1% p.a. and for Pensioners it is: 12% p.a.

Particulars Salaried Pensioners
Interest rate 11.05% p.a. – 17.1% p.a 12% p.a.
Loan Amount

Minimum: Rs.25,000

Maximum: Rs.15 lakh

Minimum: Rs.25,000

Maximum: Rs.14 lakh

Loan Tenure

Up to 60 months

Up to 84 months

Lowest EMI Rs.544 Rs.556
Processing Fee 1% of loan amount + tax 0.5% of loan amount + tax, with a minimum of Rs.250
Age - Up to 78 years
Prepayment Charges 3% on prepaid amount 3% on prepaid amount

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.

Calculating Interest On SBI Personal Loan

While there is a formula you can use to calculate the EMI on your loan, an easier way to calculate the interest payable is to use an EMI calculator. You can use BankBazaar’s Personal Loan EMI Calculator to determine how much you need to pay each month. Enter your loan details and hit ‘Calculate’. 

This can be understood better with the help of an example. 

Example 1: Calculating EMI payable on a loan of Rs.6 lakh and at the lowest rate of interest

Let’s assume that you take a loan for Rs.6 lakh from SBI for 5 years and at a rate of 11.05% p.a. The processing fee on your loan is 1.18% (1% of the loan amount and 18% tax on that amount) and you don’t plan to make any prepayments. 

The EMI you end up paying is Rs.13,060. 

Here’s the loan amortisation table for a 5-year loan taken in March 2019 and ending in February 2024: 

Year Principal paid (Rs.) Interest paid (Rs.) Outstanding amount (Rs.)
2019 78,555 52,052 5,21,445
2020 1,04,283 52,442 4,17,163
2021 1,16,406 40,316 3,00,757
2022 1,29,943 26,785 1,70,815
2023 1,45,051 11,674 25,764
2024 25,764 356 0

Example 2: Calculating EMI payable on a loan of Rs.6 lakh and at the highest rate of interest 

This time, let’s assume that the interest rate is on the higher end of the spectrum at 15.45% p.a. Supposing the tenure and amount are the same, your EMI now goes up to Rs.14,416. 

The amortisation table for 5 years (March 2019 to February 2024) will look as follows: 

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.

Year Principal paid (Rs.) Interest paid (Rs.) Outstanding amount (Rs.)
2019 70,923 73,238 5,29,07
2020 97,998 74,995 4,31,079
2021 1,14,259 58,735 3,16,821
2022 1,33,216 39,776 1,83,605
2023 1,55,320 17,673 28,285
2024 28,285 547 0

Factors Affecting SBI Personal Loan Interest Rates

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 -

  1. Personal loan amount - Based on the amount of personal loan applied for, the interest rate might be changed beyond the advertised rate for specific customers or categories of customers
  2. Tenure of the personal loan - Based on the discretion of the bank, a longer tenure might have a lower or higher rate of interest
  3. Repayment capacity - State Bank of India will check repayment capability of a customer. Depending on amount of cash inflows and transactions carried out by a customer, the bank might offer some leniency on personal loan interest rates
  4. Income - Income is important for loan eligibility as well. Additionally, the bank may change the interest rate for a personal loan based on the income of a customer
  5. Assets - Presence of fixed and movable financial assets play a crucial loan in improving the financial picture of one’s life. Based on the same, State Bank of India might provide a preferential rate of interest for personal loans
  6. Relationship with the bank - An existing customer of State Bank of India is bound to get preference when applying for a personal loan and the bank might consider providing a better rate of interest to the customer
  7. CIBIL scores - Approval of a personal loan takes one’s credit history into account. So, the CIBIL score might also work in favour of getting a better interest rate from the bank

In spite of the above factors, any change in the advertised interest rates is at the sole discretion of the bank.

How does the CIBIL Score affect Personal Interest Rates of State Bank of India?

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.

Key Points regarding State Bank of India Personal Loan Interest Rates

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 -

  • The interest rates in State Bank of India for personal loan are subject to the repo rate of RBI and may come down further, but not necessarily immediately
  • The personal loan interest rates in State Bank of India are floating, not fixed and are a mixed bag depending upon the scheme availed
  • Personal loans from State Bank of India don’t require any security or guarantor, but having a stellar financial record and investments in government securities might aid in getting a better interest rate
  • While your credit score might be kept in mind by State Bank of India, the interest rates may or may not change as per that

News About SBI Personal Loan Interest Rates

  • SBI provides personal loans against credit cards

    State Bank of India (SBI) provides personal loans against their credit cards within 48 hours. The process can be completed in three steps. Customers can visit and share the details of their card and date of birth. Customers can also call 39 02 02 02 or 1800 180 1290 or send a message (SMS Encash) to 56767 to avail this facility.

    The amount can be repaid in 12, 24, and 36 months in case individuals opt for this facility. According to existing offers, the interest rates are determined. A 2% charge is levied as a one-time processing fee, which can be between Rs.499 and Rs.3,000. In case of foreclosure, a 3% charge on the remaining principal amount is levied. The loan offer is available to only certain SBI credit card holders. Customers might be eligible for a loan above or below their credit limits. Fund are transferred within 48 hours to the bank account or paid by cheque. Customers can visit the website and login using their User ID and password. If they are eligible for the loan offer, an ‘Encash’ link will be present. Upon entering the details required, customers can avail the loan. The loan can be availed on the mobile app as well.

    12 March 2019

  • How to claim tax benefit on a personal loan?

    Personal loans are a convenient way to help one with finances when making major expenses. Unlike home loans and car loans, personal loans are unsecured in nature and are approved without any security or collateral. Though personal loans do not have any tax benefits associated with them, you can still claim deductions in the ways mentioned below:

    Buying a house: Under section 24(B) of the Income Tax Act, 1961 you can claim a deduction of up to Rs.2 lakh on the interest amount of the loan if you use the loan amount to buy or construct a house. However, it is imperative to provide proof of the loan amount's usage in building or purchasing the house. Education: Section 80E of allows taxpayers to claim deductions on education loans. You can file a tax rebate with a personal loan under the same section if you have used it to sponsor your higher education or for your spouse or children. Up to Rs.1.5 lakh of tax benefits can be claimed on the interest amount. Investment: If you used the loan to invest in your business, the interest amount will be considered an expense and adjusted in your company's revenue. The interest amount can be deducted from the company's profit, thus, bringing down the taxable income.

    25 February 2019

  • Checking personal loan status

    Personal loans are useful for people who do not have a financial plan or face unforeseen expenses. While some individuals avail a personal loan for emergencies, others use them to fund holidays or make high-end purchases.

    Since individuals require a personal loan immediately, they would want the money to be their accounts as soon as possible. Borrowers would need to get in touch with banks or Non-bank Financial Companies (NBFCs) to avail a personal loan. There are various third-party sites also available where individuals can apply for a personal loan. Depending on the bank or NBFC, the documents required for a personal loan may vary.

    Checking application status: The process to track the application of a personal loan can be found out by asking bank executives. Banks also offer easy online tools where the status of the application can be checked. Individuals can also contact the customer care number of the bank or NBFC to find out the application status. However, they will need to make a note of the application number or reference number. Individuals can enter the reference number or the application number on the website of the bank or NBFC to find out whether the loan is approved or not. In case individuals do not have the reference number or application number, the name, date of birth, mobile number, and PAN details of the individual must be entered to find out the status of the application.

    22 February 2019

  • From travel to medical emergencies, personal loans can be taken for various purposes

    Earlier, getting personal loans for travelling or holidays was very difficult, but lately, loans for these purposes are easily available. Lenders are offering flexible loans to customers in terms of repayment schedules, duration, and loan amount.

    Loans are available for medical emergencies, plastic surgery, and hair transplant as well. Technology is being used by lenders to check the credit score of customers and provide loans to them. This helps in providing loans to better customers and bring down the costs. Medical emergencies, home renovation, and holidays are some of the common scenarios where people take loans. Personal loans are considered to be a much better option than maxing out credit cards because of the low-interest rates compared to credit cards. Loans for the treatment of hair loss is being offered by DigiLend. DigiLend has tied up with Richfeel Health and Beauty to provide loans for such purposes. Customers are provided flexibility to repay the loans. In some cases, the Equated Monthly Instalments (EMIs) are low initially and increase in the later period of the loan tenure.

    21 February 2019

  • 4 steps to find a personal loan that is right for you

    Financial needs may arise anytime. Occasions like weddings or buying a new gadget can prove to be major expenses and we might not always have a big savings pool we can dip into when needed. In such cases, a personal loan can prove to be very useful. Banks often offer personal loans at lucrative interest rates. The market today is brimming with such offers, but it is imperative to find the one that suits your needs the most. Here are 4 steps to help you find the perfect personal loan:

    Credit Score: Check your credit score before looking for plans. A good score will increase the chances of getting the loan application being approved. Compare: Many third-party websites today provide information about loans from various providers. Look at the offers, especially the interest rates and processing fee. This will help you narrow down your search to the loans that have the lowest rates. Lender: Compare the lenders and find the features that you would like to have. For instance, some lenders might provide lower interest rates while others provide more flexible tenure. EMI and Tenure: Choose the repayment tenure wisely. With a shorter tenure, you will save on the interest amount, but the EMI will be significantly higher. Whereas, with a longer tenure you will have lower EMIs but will end up paying more in interest amount.

    21 February 2019

  • Maximum Personal Loans Taken by Residents of Bangalore

    It has been observed that the maximum number of car loans and personal loans are taken by the people and residents of Bangalore. The loan ticket sizes in Bangalore is currently the highest as compared to the rest of the Indian cities. The number currently stands at Rs.47 lakh which is thence followed by Delhi whose amount stands at Rs.26 lakh, and then Kolkata whose amount stands at Rs.30 lakh.

    It has further been observed that in comparison with their urban counterparts, loan borrowers from tier-2 and tier-3 cities refrain themselves from spending more than Rs.20 lakh on a car or vehicle. Women have been reported to have transcended men in terms of vehicle purchases.

    19 February 2019

  • SBI crosses target for Mudra loans for 2017-18

    State Bank of India (SBI) has exceeded the loan target for Pradhan Mantri Mudra Yojana (PMMY) in the state of Telangana for 2017-18. The target for the month of March 2018 was Rs.2,100 crore, which was achieved in the month of February itself. The bank offered loans worth Rs.2,500 crore under the Mudra scheme in February. The target for the PMMY for the entire nation for the whole year was Rs.2.44 lakh crore. The Mudra scheme provides 3 types of loans and they include Tarun, Kishor, and Shishu.

    30 April 2018

Personal Interest Rates

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