Finance

How to apply for various loans and their criteria in SBI

SBI is one of the leading financial banks in India. Like other financial institutions, SBI offers different types of personal loans to their customers. But at times, due to incomplete or no information, the customers might miss on the benefits of applying for them. This blog will talk about the details of various types of loans provided by SBI, particularly their key highlights and eligibility. So, if you are a regular customer of SBI who wants to take a loan, or if you are a future SBI customer, you have clicked at the right blog! 

1. SBI Xpress Credit: 

This is a personal loan offered by SBI with low processing fees. The lowest rate of interest offered under this loan ranges between 10.6% p.a. to 13.2% p.a, with a maximum loan amount of Rs. 20 Lakh. To be able to apply for this loan, the applicant should: 

   a. Have Net Monthly Income (NMI) of Rs. 15,000. 

   b. The EMI/NMI ratio should not exceed 50%. 

   c. Be an employee at any one of a Central or state government, central or state PSU, educational institutions with a national reputation, or a quasi-government organization. 

2. SBI Pension Loan: 

This is another low processing fees type of personal loan offered with an additional advantage of minimal documentation since it is aimed at senior citizens of the country. With quick disbursal of the loan amount, the interest rate varies from 9.75% p.a.– 10.25% p.a., and the maximum limit of the loan amount is Rs. 14 Lakh. For applying to the bank:

  a. The applicant needs to be a central government/state government/ defense/ family pensioner. 

  b. The age of the pensioner should not be greater than 76 years. 

  c. A defense pensioner can be the pensioner of any of the armed forces. 

3.  SBI Xpress Bandhan Loan:

The greatest edge to this type of personal loan is that the applicant need not have a bank account with SBI as a pre-requisite to apply for this loan. The repayment tenure on this one is upto either 5 years or till the end of the service, whichever is the earlier one. The interest rate, in this case, is at the discretion of the bank and the maximum amount landed in this one is Rs. 15 lakhs. To be eligible for this service,

a. The applicant should have a minimum of Rs. 50,000 as their monthly salary.

b. The EMI/NMI ratio can be upto the limit of 50%.

4. SBI Pre-approved Personal Loan: 

  It is another one of SBI’s low processing fee loans, which is processed instantly. The interest rate for this loan can be as low as 9.6%. The amount of loan, however, depends on the discretion of the bank. To know the eligibility of this one, you need to send an SMS to SBI in the following format: “PAPL <last four digits of the applicant’s SBI savings bank account number> to 567676.

There are some other types of loans that you can inquire about from your nearest branch or their website. To apply for any type of loan, you need the following documents:

  • Loan application form.
  • 3 photographs passport-sized.
  • Identify proof
  • Residence proof
  • Bank Account Statement/Passbook for last 6 months.
  • Signature verification by bankers of the applicant.
  • Liabilities statement and Personal Assets.
  • Property detailed documents
  • Salary Certificate (original) from an employer. (salaried individuals)
  • Form 16/IT Returns for the past 2 financial years. (salaried individuals)
  • IT Returns/Assessment Orders copies of the last 3 years. (self-employed professionals)
  • Challans as proof of Advance Income Tax payment. (self– employed professionals)
  • Proof of business address for non-salaried individuals. (self–employed professionals)
  • IT returns/Assessment Orders copies of the last 3 years. (Self – Employed Businessmen)
  • Challans as proof of Advance Income Tax payment. (Self – Employed Businessmen)

We hope that this information made you feel at ease with your loan procedures. For other finance-related topics, make sure to check other blogs on our site. Until next time!!!

Also Read: Types of Investments Available in India

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