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SBI Personal Loan Interest Rate

Current SBI Personal Loan Interest Rate

Last Updated 05th Apr 2021

Interest Rate 9.60% - 16.40%
Tenure Upto 72 months
Processing Fee 1.00%
Loan Amount ₹ 50,000 to ₹ 15 Lakh
Minimum Income ₹ 24,000
Age 21 to 58 years
Prepayment Charges Not allowed
Foreclosure Charges Allowed after 6 months at 3%
  • Current SBI personal loan interest rate starts at 9.60%.
  • SBI offers special personal loan rates for borrowers who are existing bank customers or working in a reputed company.
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Interest Rates on SBI Personal Loan

SBI personal loan interest rates depend upon a number of factors such as borrower’s occupation, credit score, employment history, loan requirement, etc. Apart, the SBI personal loan rates differ across different types of borrowers such as salaried employees, self-employed, pensioners and women borrowers. SBI offers personal loan to salaried individuals at a minimum rate of 9.60%. However, SBI provides various personal loan schemes to cater to the needs of different loan borrowers. These are listed as follows:

SBI Personal Loan SchemeInterest Rate
SBI Xpress Credit Personal Loan10.60%
SBI Saral Personal Loan17.65%
SBI Pension Loan11.45%
State Bank Festival Loan12.50%
Jai Jawan Pension Loan12.45%
SBI Emergency Loan10.60%

SBI loan for Govt Employees & Private Job Employee

While both salaried and self-employed professional can apply for a personal loan, salaried employees can avail SBI personal loan at a comparatively lower interest rate. This is because salaried applicants have stability in their jobs with a fixed source of income. However, the rates and eligibility criteria for Govt employees and Private Job employees may vary in SBI. The lowest personal loan rate for private employees is 9.60%.

SBI Personal Loan Interest Rates for Salaried and Self-Employed

Employment TypeRate of Interest Minimum AgeMaximum Age
Salaried Starting from 9.60% 21 years 58 years
Self-Employed Professional Starting from 11.20% 21 years 65 years

SBI Personal Loan rate comparison with other banks

Even though SBI has some good personal loan schemes, you cannot be sure about the offerings from one bank unless you analyze multiple banks and their offerings.

Particulars SBI ICICI Bank HDFC Bank
Rate of Interest Starting from 9.60% Starting from 10.75% Starting from 10.50%
Loan Tenure 6 - 72 months 12 - 60 months 12 - 60 months
Minimum Age 21 years 23 years 21 years
Processing Fee 1.00% Upto 2.25% of Loan Amount Upto 2.50% Min Rs. 1,999
Maximum Loan Amount ₹ 15 Lakh ₹ 30 Lakh ₹ 75 Lakh
Prepayment charges Not allowed Not allowed Allowed after 12 EMI's, 2-4%
Pre closure charges Allowed after 6 EMI's, 3% Allowed after 6 EMI's, 5% Allowed after 12 EMI's, 2 - 4%

SBI Personal Loan Balance Transfer Interest Rates

SBI personal loan balance transfer facility is ideal for existing personal loan customers, who feel that they are paying high interest to the lender. Through this facility, you can continue your existing personal loan with SBI at a lower rate of interest. Thus you can switch the lender without closing the loan. Currently SBI offers the lowest personal loan balance transfer rate of 10.60%.

Factors Affecting SBI Personal Loan Rates

When you apply for a personal loan from SBI, there are various factors which play their part to determine the rate of interest for your loan. Below are the factors which will affect your SBI personal loan rates:

  • Tenure: The interest rates on personal loans are not entirely dependent on the loan tenure, but it does play a part. Based on the policy of the bank, the interest rate can increase or decrease with respect to a shorter or longer time period.
  • Credit Score: Since a personal loan is an unsecured loan, your credit score carries a lot of weightage in determining the rate of interest on your loan. Thus, make sure you apply for the loan when your score is above 800. If you are applying with a score below 800, then you need to be prepared to accept a higher rate of interest.
  • Income: Income is also an essential factor in determining the rate of your loan. With the higher income, you are likely to get into a lower interest rate bracket and vice versa.
  • Loan Amount: The amount of credit you have applied for also affects the rate of interest. Based on your applied loan amount rate of interest can change beyond what is advertised based on specific categories.
  • Repayment Capacity: Banks can also offer you lower interest rates if you have a good repayment capacity.
  • Existing Relationship: Banks also provide some benefits to the existing customers, especially those who have a good track record with the bank.

How to Get Low Interest Rates on SBI Personal Loan?

You can get the lowest SBI personal loan rate, by ensuring the below-mentioned things:

  • Ensure that you are aware of the SBI personal loan eligibility and documentation requirements beforehand, so that you do not end up paying extra interest as a compensation for any shortcoming.
  • Ensure that you maintain a good credit score above 700, so that the lender is ensured of your repayment capability and credibility.Thus, does not charge a higher rate.
  • Ensure maintaining a low credit utilization ratio that highlights that the ratio of your credit availability to expenses is well maintained.
  • Lastly, ensure that you do not apply for a personal loan with multiple lenders apart from SBI so that you do not seem credit hungry.

SBI Personal Loan Charges

SBI applies various charges on personal loans such as processing fee, part payment charges and foreclosure charges. Processing fee applicable on SBI personal loan is 1.00%. SBI does not offer part payment facility on personal loan after 0 month at 0 charges. SBI offers foreclosure fee on personal loan to repay the entire amount after 6 months at 3%.

SchemesProcessing Fee Prepayment ChargesForeclosure Charges
SBI Xpress Credit Personal Loan1.00%3% of prepaid amount3% of prepaid amount
SBI Saral Personal Loan3.00%3% of prepaid amount3% of prepaid amount
SBI Pension Loan0.25%3% of prepaid amount3% of prepaid amount
State Bank Festival Loan1.00%3% of prepaid amount3% of prepaid amount
Jai Jawan Pension LoanNilNil prepayment chargesNil prepayment charges
SBI Emergency Loan1.00%3% of prepaid amount3% of prepaid amount

Interest Calculation Method for SBI Personal Loan

The interest for SBI Personal loan is calculated based on the following methods:

  • Flat rate method: As per the flat rate method calculator of SBI personal loan interest rate, the loan rate is estimated on the original loan amount throughout the original loan tenure. Thereby the principal amount for calculation remains the same. This method is also called the fixed method of SBI personal loan interest calculation.
  • Reducing rate method: As per the SBI personal loan reducing balance method the interest rate is calculated on the outstanding loan amount. Therefore, the principal component that is paid during the monthly EMI is not chargeable for interest calculation. In this case the outstanding balance and the interest reduces with time, and the interest is charged only on the remaining principal amount.

The functioning of the above-mentioned methods for SBI personal loan can be understood with the help of the following table:

ParametersFlat Rate Method Reducing Balance Method
Loan amount₹ 4,00,000₹ 4,00,000
Tenure36 months36 months
Rate of Interest12%12%
Total Interest payout₹ 1,44,000₹ 78,296
Monthly EMI₹ 15,111₹ 13,286
Savings₹ 65,704

SBI Personal Loan Interest Rates Calculation

Let’s say Mr. Maheshwari earns a monthly salary of ₹ 35,000 . His credit score is 810, and he avails the SBI personal loan of ₹ 4 Lakh for a tenure of 2 years. Given his excellent credit score, the interest rate charged on his loan is 9.60%. Thus, the monthly EMIs he would have to pay are listed in the table below:

Months EMIs Principal Paid Interest Paid Outstanding Balance
Apr 2021 ₹ 18,384 ₹ 15,184 ₹ 3,200 ₹ 3,84,815
May 2021 ₹ 18,384 ₹ 15,306 ₹ 3,079 ₹ 3,69,510
Jun 2021 ₹ 18,384 ₹ 15,428 ₹ 2,956 ₹ 3,54,081
Jul 2021 ₹ 18,384 ₹ 15,552 ₹ 2,833 ₹ 3,38,530
Aug 2021 ₹ 18,384 ₹ 15,676 ₹ 2,708 ₹ 3,22,854
Sep 2021 ₹ 18,384 ₹ 15,801 ₹ 2,583 ₹ 3,07,053
Oct 2021 ₹ 18,384 ₹ 15,928 ₹ 2,456 ₹ 2,91,125
Nov 2021 ₹ 18,384 ₹ 16,055 ₹ 2,329 ₹ 2,75,070
Dec 2021 ₹ 18,384 ₹ 16,184 ₹ 2,201 ₹ 2,58,886
Jan 2022 ₹ 18,384 ₹ 16,313 ₹ 2,071 ₹ 2,42,573
Feb 2022 ₹ 18,384 ₹ 16,444 ₹ 1,941 ₹ 2,26,129
Mar 2022 ₹ 18,384 ₹ 16,575 ₹ 1,809 ₹ 2,09,554
Apr 2022 ₹ 18,384 ₹ 16,708 ₹ 1,676 ₹ 1,92,846
May 2022 ₹ 18,384 ₹ 16,841 ₹ 1,543 ₹ 1,76,005
Jun 2022 ₹ 18,384 ₹ 16,976 ₹ 1,408 ₹ 1,59,029
Jul 2022 ₹ 18,384 ₹ 17,112 ₹ 1,272 ₹ 1,41,917
Aug 2022 ₹ 18,384 ₹ 17,249 ₹ 1,135 ₹ 1,24,668
Sep 2022 ₹ 18,384 ₹ 17,387 ₹ 997 ₹ 1,07,281
Oct 2022 ₹ 18,384 ₹ 17,526 ₹ 858 ₹ 89,755
Nov 2022 ₹ 18,384 ₹ 17,666 ₹ 718 ₹ 72,089
Dec 2022 ₹ 18,384 ₹ 17,807 ₹ 577 ₹ 54,281
Jan 2023 ₹ 18,384 ₹ 17,950 ₹ 434 ₹ 36,331
Feb 2023 ₹ 18,384 ₹ 18,094 ₹ 291 ₹ 18,238
Mar 2023 ₹ 18,384 ₹ 18,238 ₹ 146 ₹ 0

Check Other Banks Interest Rates

FAQs

What is the lowest personal loan rate in SBI?

The lowest personal rate offered by SBI on a personal loan is 9.60%.

What is the current SBI personal loan interest rate per annum?

SBI is the one of the leading personal loan lenders in India. Currently, it offers personal loans beginning from 9.60% per annum.

What is SBI personal loan interest rate for existing customers?

SBI offers pre approved loans to its existing customers with discounted rates and easier terms and conditions. SBI personal loan interest rate for existing customers begins from 9.60%.

What are the SBI personal loan interest rates for salary account holders?

The personal loan rates of SBI for salary account holders range from 9.60% to 16.40%.

Can I ask for a reduction in the SBI personal loan interest rate?

You can ask for a reduction in your SBI personal loan interest rate. However, it depends upon the policy of the bank, whether it allows negotiation or not. Good credit score, high income, and existing relationship with the bank are some of the points which can contribute to the talks going your way.

Is there any need for security or collateral while availing Personal loan from SBI?

No, there is no need for any collateral or security while availing a personal loan from SBI. A personal loan is an unsecured loan; thus, it does not require pledging of any asset as security to avail the loan.

How can I close my Personal Loan from SBI early?

If you want to prepay your entire personal loan from SBI, then you can do so by making a lump sum payment. However, you should also inquire about the prepayment and foreclosure charges based on the personal loan scheme availed by you, before making any decision.


SBI Personal Loan News - Apr 2021
  • 2021-03-21 : SBI recorded digital transactions as high as 67%
    State Bank of India has recorded a considerable increase in its digital transactions. The bank reported 67% digital transaction in the post Covid period from earlier 60% in the pre Covid times. The increase is attributed to hike in e-commerce due to covid induced lockdown which restricted the movement.
  • 2021-02-23 : SBI launched YONO Merchant app
    SBI Payments launched YONO Merchant App to expand the digitisation of merchant payments in the country. The Bank is aiming to create a Payments Infrastructure Development Fund (PIDF) to encourage acquirers to deploy Point of Sale (PoS) infrastructure in lesser penetrated areas of the country.
  • 2020-12-10 : SBI recasts only 4,000 retail loans
    SBI has recast loans of just around 4,000 retail customers so far under the limited window of the RBI, indicating that barring micro, small and medium businesses, not many are availing of easier repayment norms. The bank clarified that 100,000 retail borrowers logged on to its website to check their eligibility, but not many were found to have met the stringent conditions set by RBI.
  • 2020-12-10 : SBI goes easy on a plan to spin off Yono
    State Bank of India is going slow on its plans to divest its stake in digital platform Yono, YONO is a digital initiative by SBI and stands for “You Only Need One”. YONO helps customers to apply for retail loans like home, personal, gold, two-wheeler and car loan along with business and mudra loans digitally. Further, it also helps in investing in FD and RDs. The special digital tool also provides the facility to apply for the current and savings account.
  • 2020-11-11 : SBI to focus on financial inclusion
    SBI is planning to increase the share of its newly created business vertical, financial inclusion and micro-markets from the current 12% to 20% by March 2022. The bank recently created a separate FI&MM vertical within the bank with an aim of financial inclusion of rural and semi-urban areas to improve customer experience in the hinterland.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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