• South Indian Bank Personal Loan Interest Rates

    South Indian Bank offers individual and group personal loans with an interest rate starting from 10.15% p.a. onwards for individuals and 9.95% p.a. for groups. The tenures range between 1 year and 5 years. A processing fee of 2% is charged on the total loan amount.

    Particulars Salaried/Self-Employed Group Employees
    Interest Rate  10..15% p.a. onwards  9.95% p.a. onwards 
    Processing Fee  2%  2% 
    Loan Tenure  1-5 years  1-5 years 
    Loan Amount  Rs.1 lakh – Rs.10 lakh  Rs.50,000 – Rs.1 crore 
    Salary / Income  Minimum of Rs.25,000 per month  Minimum of Rs.10,000 per month 
    Employment Status  Salaried or self-employed  Employee of an organisation 
    Credit Score  Minimum of 710  Minimum of 700 
    Lowest EMI per Lakh  Rs.2,132  Rs.2,222 
    Pre-Payment/Foreclosure Charges  2% - 4%  2% - 4% 
    Age  Minimum: 21 years old  Maximum: 65 years old  Minimum: 21 years old  Maximum: 65 years old 

    SIB Personal Loan Schemes 

    1. For individuals: 

    Interest Rate  Processing Fee  Loan Tenure  Loan Amount  Salary / Income 
    10.15% p.a. onwards  2%  1-5 years  Rs.1 lakh – Rs.10 lakh  Minimum of Rs.25,000  per month 

    2. For Group: 

    Particulars  Interest Rate  Processing Fee  Loan Tenure  Loan Amount  Salary / Income 
    Group Personal Loan  9.95% p.a. onwards  2%  1-5 years  Rs.50,000 – Rs.1 crore  Minimum of Rs.10,000  per month 

    Factors affecting the SIB personal loan interest rate

    • Repayment tenure: SIB offers flexible repayment tenures between 1 year and 5 years and the longer the tenure, the more likely the chances of the interest rate being set higher.
    • The financial status of the applicant: The income of the individual and his/her CIBIL score is taken into consideration when setting the interest rate. If the income of the individual is low and the CIBIL score of the individual is low as well, then SIB may set the interest rate higher.


    1. For individuals with a salary of Rs.15,000 per month

    Let’s assume that Mr. Rohan has a low salary of Rs.15,000 per month and has no previous loans, hence his CIBIL score is 600. Mr. Rohan has decided to avail a loan of Rs.1 lakh to take care of his personal needs and has chosen a tenure of 12 months to repay the loan. Since his CIBIL score and income is low, the interest rate set by SIB is 15% and the processing fee is 2%. To repay the loan in 12 months, Mr. Rohan will have to pay an EMI of Rs.9,026.

    Year Principal Paid(A) Interest Paid(B) Total Payment (A+B) Outstanding Loan Balance
    1 Rs. 7,776 Rs. 1,250 Rs. 9,026 Rs. 92,224
    2 Rs. 7,873 Rs. 1,153 Rs. 9,026 Rs. 84,351
    3 Rs. 7,971 Rs. 1,054 Rs. 9,025 Rs. 76,380
    4 Rs. 8,071 Rs. 955 Rs. 9,026 Rs. 68,309
    5 Rs. 8,172 Rs. 854 Rs. 9,026 Rs. 60,137
    6 Rs. 8,274 Rs. 752 Rs. 9,026 Rs. 51,863
    7 Rs. 8,378 Rs. 648 Rs. 9,026 Rs. 43,485
    8 Rs. 8,482 Rs. 544 Rs. 9,026 Rs. 35,003
    9 Rs. 8,588 Rs. 438 Rs. 9,026 Rs. 26,414
    10 Rs. 8,696 Rs. 330 Rs. 9,026 Rs. 17,719
    11 Rs. 8,804 Rs. 221 Rs. 9,025 Rs. 8,914
    12 Rs. 8,914 Rs. 111 Rs. 9,025 Rs. 0

    2. For individuals with a salary of Rs.45,000 per month

    Assuming that Mr. Mohan availed a loan of Rs.3 lakh for a tenure of 1 year, because he/she has an optimum CIBIL score of 910, SIB set an interest rate of 10.15% p.a. with a processing fee of 2%. To repay the loan in 12 months, Mohan will have to pay a monthly EMI of Rs.26,396.

    Year  Principal Paid(A)  Interest Paid(B)  Total Payment (A+B)  Outstanding Loan Balance 
    2020  Rs.1,21,327  Rs.10,652  Rs.1,31,979  Rs.1,78,674 
    Aug  Rs.23,858  Rs.2,537  Rs.26,395  Rs.2,76,142 
    Sep  Rs.24,060  Rs.2,336  Rs.26,396  Rs.2,52,082 
    Oct  Rs.24,264  Rs.2,132  Rs.26,396  Rs.2,27,818 
    Nov  Rs.24,469  Rs.1,927  Rs.26,396  Rs.2,03,350 
    Dec  Rs.24,676  Rs.1,720  Rs.26,396  Rs.1,78,674 
    2021  Rs.1,78,673  Rs.6,096  Rs.1,84,769  Rs.0 
    Jan  Rs.24,884  Rs.1,511  Rs.26,395  Rs.1,53,789 
    Feb  Rs.25,095  Rs.1,301  Rs.26,396  Rs.1,28,695 
    Mar  Rs.25,307  Rs.1,089  Rs.26,396  Rs.1,03,387 


    1. Can I apply for an SIB personal loan online?
    2. Yes, SIB has the personal loan online application facility.

    3. What documents would I need to submit to avail a personal loan from SIB?
    4. You will have to submit documents that prove your identity, age, address, income, etc.

    5. Do I need collateral to avail a loan from SIB?
    6. No, there will be no need for collateral to avail a personal loan from SIB.

    7. I wish to add my spouse as a co-applicant. Is it possible?
    8. Yes, SIB allows co-applicants as well.

    9. Can I avail a higher loan amount if it going to be a joint personal loan?
    10. Yes, you can avail a higher loan amount provided both parties have a regular source of income.


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