In our day-to-day life we come across various situations such as planning weddings, going on a vacation, renovating your home, buying new gadget, and medical emergencies for which we require money in short duration. This is where a Personal Loan comes to your rescue.

Now, if you are looking for a bank to acquire a Personal Loan, then there is no better option than SBI (State Bank of India).

SBI is one of the largest banks of India and it has various kinds of personal loans to suit your individual needs. Now, we have arrived at the important part i.e. how to apply for a SBI personal loan, but before that here are some of the reasons as why SBI should be your first choice when you are looking for a personal loan.

Why Choose SBI Personal Loan?

Following are some of the key reasons as why you should go for SBI Personal Loan:

• No Hidden Charges – Whether you want to acquire a personal loan or any other loan, as far as charges and penalties are concerned, State Bank of India has a clean record. Rest assured you will not come across any hidden charges and you will enjoy transparent dealings.
• Lucrative Interest Rates – Rate of interest charged by State Bank of India for personal loan is the best in the industry. Interest rates for salaried individuals ranges from 12.50% – 16.60% and for the self-employed individuals it is 11.20% – 16.30%.
• Quick Approval – You can expect quick disbursal of your loan as the bank has streamlined its Personal Loan division. The bank also follows quick approval mechanism and it is applied for both urban and rural regions.
• Zero Prepayment Penalty – You can prepay your loan as per your convenience without thinking about the prepayment penalty.

How To Apply For A SBI Personal Loan?

There are two ways in which you can apply for a personal loan at SBI – online and in person. So, let me discuss both these methods in detail.

• Online – You have the provision of applying for SBI personal loan While applying, you just need to provide your personal details such as type of employment, contact details, income, and date of birth. On the basis of these details, the bank will check your eligibility and subsequently you will be offered a loan quote. Then you need to submit the application along with all the required documents. You can also ask to be contacted by one of the bank’s representatives to provide added information on the loan offers and the application.

• In Person – In order to apply, you can also visit your nearest SBI branch, collect the information on the personal loan, have a word with one of the bank’s representatives and submit the application along with the required documents manually.

SBI is currently offering 3 types of personal loans –

• SBI Saral Personal Loan

• Xpress Credit Personal Loan

• Festive Loans

#1. SBI Saral Personal Loan

You can take SBI Saral Personal Loan if you need immediate financial assistance for any legitimate reason including expenses for medical treatment, domestic or international travel, meeting financial expenses for the education, wedding or the purchase of the assets.

Eligibility – In order to be eligible for the SBI Saral Personal Loan, you need to be a salaried individual at a well-known corporate company or if you are self-employed professional then you need to have a minimum of two years of experience.

Loan Amount – Your bank will decide the loan amount both on your income and repayment competence. As per this loan, the minimum amount offered is Rs. 24,000 in urban areas and Rs. 10,000 in rural areas. As per this scheme, the maximum amount is 12 times your net monthly salary, up to a maximum of Rs. 10 Lakhs.

#2. Xpress Credit Personal Loan

This loan is offered to the employees maintaining a salary account with SBI –

• Educational institutions

• Central and State government

• Central PSUs

• Particular corporates having business association with SBI

• Profit making PSUs

• Quasi-Government

Income – You can avail this loan if you are having a NMI (net monthly income) of Rs. 5,000. However, the EMI and NMI ratio should not go beyond 50%. This means if your monthly income is Rs. 5,000, then your EMI on the loan should not go beyond Rs. 2,500.

Loan Amount – As far as the loan amount is concerned, you can get a loan starting from Rs. 25,000 up to 25 times your NMI capped at Rs. 15 Lakhs. This is also termed as ‘Term Loan’.

#3. Festive Loans

You can also have personal loan if you are looking to cover all the expenses made during the festival season. This facility is quite popular amongst the loan borrowers and it comes with great benefits as well. For the starters, both the interest rates and the processing fee are quite low, thus making it affordable even for a common man. The best thing is that you don’t have to bother about any hidden charges and there are prepayment penalties as well.

Eligibility – You can apply for Festive Loan if you are –

• Self-employed with a minimum experience of three years

• An employee of state or central government, public or private limited companies with a minimum experience of 2 years

• Having a NMI of Rs. 30,000 and above

• Having a regular income source via verifiable channels

Income – You should have a minimum net monthly income. If you are married, then in that case your spouse’s income can also be included in the loan amount if he/she guarantees the loan or the loan is taken mutually.

Loan Amount – The loan amount will be decided both by your income and your repayment competence, it can range from a minimum of Rs. 5,000 and a maximum of Rs. 50,000.

Author Bio: I am Ankita, a freelance writer. I started writing from a young age and most of my writing skills and knowledge are self-taught. I have written on various topics including travel, motivation, finance, technology, credit cards, insurance, and entrepreneurship etc..