SBI Personal Loan Interest Rate

SBI Personal Loan Interest Rate

The SBI Personal Loan Interest Rate starts at 9.99% p.a. Specific interest rate however relies on the candidate’s financial assessment, the bank’s inward models, and so forth The bank as of now offers individual credits to salaried people across government establishments and corporates. Key factors that impact the financing costs of SBI’s own credits incorporate the kind of manager and pay of the candidate.

Interest Rate for Different Types of SBI Personal Loan

Right now, the bank doesn’t sort its own credit offers dependent on either end-use or candidate type. In this way taking all things together cases, the SBI Personal Loan Interest Rate begins at 9.99% per annum

Personal Loan Balance Transfer Interest Rates

Borrowers have the alternative to move their current individual advance with one more bank to SBI at a slower pace of revenue by finishing an equilibrium move. The SBI Personal Loan Interest Rate begins at as low as 9.99% per annum

SBI Reducing vs. Flat Balance Method of Interest Calculation

The flat Balance method of interest calculation implies that interest is calculated on the full loan principal amount during the entire loan tenure. On the other hand, diminishing/reducing balance interest calculation implies that interest is calculated only on the outstanding loan amount every month. Therefore, as the outstanding loan amount decreases every month, the interest accrued also decreases. Thus, total interest payout is lower in the case of the reducing balance method as compared to the flat balance method of interest calculation. SBI uses a reducing interest rate to calculate the interest payable on personal loans. As a result, the interest amount decreases as the outstanding loan amount decreases every month.

EMI Calculation Using the Reducing Balance Method of Interest Calculation

The accompanying table portrays the monthly EMIs calculated using the decreasing equilibrium strategy for premium computation for various credit residencies and financing costs:

Loan Amount (Rs.) and Interest Rate Monthly EMI Payout
1-year loan tenure 2-year loan tenure 3-year loan tenure 4-year loan tenure 5-year loan tenure
1 lakh @ 11% p.a. Rs. 8,838 Rs. 4,661 Rs.3,274 Rs. 2,585 Rs.  2,174
5 lakh @ 13% p.a. Rs. 44,659 Rs. 23,771 Rs. 16,847 Rs. 13,414 Rs. 11,377

EMI Calculation Using Flat Balance Method of Interest Calculation

The accompanying table portrays the month to month EMIs determined utilizing the level equilibrium technique for premium computation for various credit residencies and loan fees:

Loan Amount (Rs.) and Interest Rate Monthly EMI Payout
1-year loan tenure 2-year loan tenure 3-year loan tenure 4-year loan tenure 5-year loan tenure
1 lakh @ 11% p.a. Rs. 9,250 Rs. 5,083 Rs. 3,694 Rs. 3,000 Rs. 2,583
5 lakh @ 13% p.a. Rs. 47,083 Rs. 26,250 Rs. 19,306 Rs. 15,833 Rs. 13,750

SBI Personal Loan Interest Calculation

SBI Personal Loan Interest Rate begins at 9.99% p.a. The accompanying table gives an example of the all-out revenue payout, the aggregate sum reimbursed and the extent of premium in aggregate sum compensated for various advance sums, loan costs, and residencies:

Loan Amount (Rs.) Tenure (years) Total Interest Payout (Rs.) Total Amount Repaid (Rs.) Proportion of Interest in Total Amount Repaid
1 lakh @ 12% 1 6,619 1,06,619 6%
10 lakh @ 15% 3 2,47,952 12,47,952 20%
20 lakh @ 20 % 5 11,79,266 31,79,266 37%

Interest Rate Comparison of SBI Personal Loan Interest Rate with Others 

An examination of the critical highlights of a SBI Personal Loan Interest Rate with other top loan specialists in India is given underneath:

Particulars Bank of India Citi Bank Axis Bank ICICI Bank State Bank of India
Interest Rate 9.99% per annum Starting from 9.99% p.a. 10.49% p.a. onwards 10.50% p.a. onwards From 9.60% onwards
Tenure 12 to 60 months 12 to 60 months 12 to 60 months 12 to 60 months 12 to 72 months
Loan amount Up to Rs. 40 lakh Up to Rs. 30 lakh Rs. 50,000 to Rs. 15 lakh Up to Rs. 25 lakh Up to Rs. 2o lakh
Processing Fee Up to 2.50% of the loan amount Up to 3% of the loan amount Up to 2% of the loan amount Up to  2.25% of the loan amount Up to 1.5% of the loan amount

How to Get Low-Interest Rates on SBI Personal Loan?

The accompanying tips could help you profit from a lower SBI Personal Loan Interest Rate:

  • Guarantee you have a negligible obligation at the hour of a credit application
  • Take care of your Mastercard bills and credit EMIs on schedule
  • Apply for an advance with your current investor (for example the bank where you have investment funds/current record)
  • Be a perpetual government representative or work with a presumed association and keep a steady business history
  • Attempt to keep a financial assessment of 750 or higher

Factors Affecting SBI Personal Loan Interest Rate

Some candidate explicit elements influencing the SBI Personal Loan Interest Rate are given underneath:

  • Credit Score: A credit score demonstrates your credit conduct and reimbursement limit. A score more like 900 is viewed as a decent score. A high credit score for the most part prompts the candidate to be charged a lower financing cost and the other way around.
  • Age of the Applicant: The candidate’s age likewise influences the interest charged by the bank. For example, the nearer you are to retirement, the higher is the loan fee.
  • Income: Lenders mull over the candidate’s income when choosing the loan fee. Candidates with higher incomes are generally offered a slower pace of interest as they represent a lower danger to the loan specialist. While candidates with lower yearly incomes might be charged a higher pace of interest.
  • Employment Details: Lenders may offer individual advances at a lower financing cost if the candidate works with a presumed association. Additionally, the loan fee may differ with the idea of employment of the candidate whether he/she is independently employed or salaried.
  • Relationship with the bank: In case you have a current relationship with the bank, you might be charged a lower pace of revenue at the hour of applying for an individual advance.

FAQs for SBI Personal Loan Interest Rate

What is the SBI’s Personal Loan Interest Rate per annum?

The SBI Personal Loan Interest Rate starts at 9.99% per annum

How is interest payable by a particular applicant determined?

The SBI Personal Loan Interest Rate depends upon several factors like the loan amount, the person’s credit score, the applicant’s income, existing relationship with the bank, etc.

How much interest is charged by the bank in case I opt for a personal loan balance transfer to the SBI?

The SBI Personal Loan Interest Rate for balance transfer starts as low as 9.99% per annum. However, the specific interest rate depends upon several factors like the loan amount, tenure, etc.

How can I repay the SBI Personal Loan?

SBI personal loans can be easily repaid in EMIs. The same can be done through post-dated cheques, ECS, or via standing instructions to debit your SBI accounts with the EMI amount.

Can I prepay my SBI Personal Loan?

Yes, you can prepay your loan in full any time after paying the 12 EMIs along with the applicable foreclosure charges. You can foreclose the loan by issuing a Demand draft/ cheque at the branch.

Can self-employed individuals apply for a personal loan from the SBI?

No, at present SBI only offers personal loans to salaried individuals meeting the eligibility criteria. However, self-employed individuals may be eligible for a business loan from the bank.

What are the different types of personal loans available with the SBI?

At present SBI does not offer multiple types of personal loans. However, the personal loan offered by the bank can be utilized to meet various financial needs like medical/travel expenses, home renovation, etc.

What are the factors which affect the amount of EMI to be paid on a personal loan?

The EMI amount depends upon the interest rate charged by the bank, the loan tenure, and the principal amount borrowed.

 What will happen in case I miss an EMI?

In case you miss an EMI, you will be charged a late payment fee along with penal interest on the applicable repayment amount. Defaulting on timely EMI payments may also affect your credit score in the long run.

Can I change the mode of repayment for a personal loan?

Yes, the mode of repayment/ account for a SBI Personal Loan Interest Rate can be changed. To do so, a pay order, cheque, or Demand Draft of Rs. 500 + GST in favor of “SBI Ltd Loan Account No.” along with the revised set of repayment instructions needs to be submitted.