South Indian Bank Limited (SIB) is a private sector bank headquartered at Thrissur City in Kerala, India. South Indian Bank has 802 branches spread across more than 26 states and union territories in India. It has set up 933 ATMs all over India.SIB providing personal loan for meeting personal / family finance requirements. SIB provide you PL in two categories (1)For Individuals (2) Group Loans.To know more, follow some simple steps given below to get attractive deals.
|Processing Fees||0.50% of the Loan Amount|
|Pre closure charges||1% to 2% of prepaid amount|
|Loan Tenure||48 months|
|Guarantor Requirement||Guarantor required|
South Indian Bank came into being during the Swadeshi movement. It was the first bank among the private sector banks in Kerala to become a scheduled bank in the year 1946 under the RBI Act. It has over 802 branches spread across more than 26 states and union territories.
The South Indian Bank offers Personal Loan to individuals as well as groups to meet personal financial requirements.
You or your family might have financial requirements that your daily income may not be able to meet and hence there is a need to take a loan or an advance. You might need finances to buy something for your house or for taking a vacation or to meet some emergency medical expenses.
South Indian Bank offers personal loan to individuals and groups to meet the expenses towards the purchase do household articles, electronics, computer equipment, medical expenses, inland travel and foreign travel, travel abroad on employment contract.
The features of personal loan from South Indian Bank are as follows:
The maximum amount that is given out as a personal loan is Rs.3 lakhs.
Salaried individuals get 15 times the monthly net salary as loan with a maximum of Rs.3 lakhs.
Businessmen and professionals can get a loan equal to the annual income declared in the latest Income Tax Return it is also subject to a maximum of Rs.3 lakhs.
People travelling abroad on employment contract can get loan covering up to 75% of the total expense or 5 times the monthly salary, whichever is lower. The maximum that one can get is Rs.3 lakhs.
NRIs can get 50% of their annual remittance to their NRI account or their spouse’s domestic account.
The loan amount is credited to the savings bank account of the borrower. In case of NRIs, the amount is credited to NRO account only.
Individual loans for doctors and savings bank account holders whose salary is credited to the account, the guarantee is optional.
For people going abroad on employment, loan amount of up to Rs.1 lakh needs a guarantor and loan amount above Rs.1 lakh requires the borrower to submit a property or an acceptable collateral security for 125% of the loan amount.
For others, at least one guarantor is required who has net worth not less than thrice the loan amount.
Group loans will require one permanent employee of the organisation to be the principal debtor and a co-obligant for one loan only.
The borrower will have to pay one-time upfront fee 0.50% of the loan amount.
The maximum repayment period allowed is 48 months.
When you need money urgently, without prior notice, a personal loan can be a God-send. You can avail personal loans at competitive rates from South Indian Bank. As per Reserve Bank of India’s guidelines, loans taken after the 1st of April 2016, will have interest rate calculated based on the new MCLR system. Old loans will continue to use the Base Rate to compute interest rate. Borrowers with older loans can choose to switch from Base Rate system to MCLR system if they wish to do so. The bank must be contacted for doing this.
The table below highlights the MCLR rates for the current month. These rates are liable to change on a regular basis.
|MCLR Benchmark Tenure (Period)||Benchmark Rates (MCLR)|
MCLR system uses various factors to calculate the interest rate including tenure for which the loan has been taken. The final rate of interest will vary after a certain percentage is added above the prevailing MCLR. Certain guidelines are issued by the Reserve Bank of India that the bank must follow while calculating interest using the MCLR system.
|Base Rate||10.00% per annum, effective 11/11/2015|
|Prime Lending Rate||15.00% per annum, effective 11/11/2015|
Those who availed a personal loan from South Indian Bank before MCLR system was introduced can choose to either continue paying interest according to their existing plan or they can choose to migrate to MCLR system. Banking history of borrower and tenure will be considered if the interest is calculated using the base rate. A certain percentage will be added over and above the current base rate by the bank. Further, the final rate will be decided at the bank’s discretion.
Note: The rates mentioned here are valid as of 16/ 6/ 2016. The rates are subject to change at the discretion of the bank. Applicants must check the most recent rates while applying for a loan.
You need to be within the ages of 21 years to 58 years. You must be salaried or self-employed earning a regular income.
A person is allowed to take a personal loan for a maximum amount of Rs.3 lakhs. If you have EMIs of other loans, then it could lower your eligibility.
When applying for a South Indian Bank Personal Loan carry the following documents:
You need to know how much money you can pay each month towards the loan’s EMI. For this you can make use of the EMI Calculators available on BankBazaar.com. All you need to do is fill in your loan amount, loan tenure and the interest rate that is being offered. BankBazaar will then give you a breakup of the loan, amortization, repayment details, interest and principal components, etc. This will give you the complete information on how much money is going towards the interest and the principal amount.
South Indian Bank offers personal loans only for salaried individuals earning more than the minimum stipulated amount per month depending on the city of their residence. The minimum monthly income required for South Indian Bank personal loan is Salaried with Regular Income. If you fall into this group, you can definitely apply for a South Indian Bank personal loan.
You can repay the loan in Equated Monthly Installments (EMI's) using the ECS facility or through post-dated cheques.
South Indian Bank offers personal loans as high as Rs.3 Lakhs for successful applicants depending on their financial record and repayment history.
South Indian Bank offers personal loan with a tenure period 48 months making it suitable for all loan seekers.
South Indian Bank offers three personal loans, with one designed for individuals and another targeted to groups. The third type of personal loan is designed exclusively for doctors.
Borrowers can avail loans up to a maximum of Rs 3 lakhs under the SIB personal loan scheme, subject to them meeting certain basic criteria. Loans to the tune of Rs 5 lakh can be taken under the Doctors’ credit scheme
Individual personal loans can be availed by people with permanent employment, businessmen/women, NRIs, professionals and anyone else who has a regular source of income.
A group personal loan can be availed by permanent employees of either a state or central government undertaking, public sector enterprises or those working in institutions of repute.
Yes, applicants should produce proof of income before their applications can be processed.
A personal loan from South Indian Bank is directly credited to the account of a borrower, with no other payment option available. This account will be credited to either the savings or CD account for Indian residents and NRO accounts for NRIs.
Yes, an individual should have an account with SIB, as the loan is directly credited to this account.
Yes, South Indian Bank charges a onetime processing fee which is equivalent to 0.5% of the loan amount sanctioned.
One can apply for a South Indian Bank Personal loan by downloading an application form from its official website. Individuals can also choose to apply online directly, by choosing the “Apply Online” tab on the website. Conversely, an individual can fill the downloaded form and submit it to the nearest SIB branch for processing. Individuals should provide their basic information like name, address, age and loan specific information like quantum of loan and purpose of loan while applying.
Borrowers who have taken a personal loan from South Indian Bank are expected to repay the loan through EMIs, with the maximum period for repayment being 4 years.
*This article is provided only for consumer information on an as is where is basis and BankBazaar does not claim or represent to be connected with South Indian Bank. For further information about any of the products mentioned above please contact South Indian Bank.
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