SBI Personal Loan Interest Rates

SBI Personal Loan Interest Rates 2018

Particulars	Salaried	Self-employed
Interest rate	12.50% – 16.60% p.a.	11.20% – 16.30% p.a.
Loan Amount	Minimum: Rs.10,000 Maximum: Rs.15 lakh	Minimum: Rs.5 lakh Maximum: Rs.1 crore
Loan Tenure	Minimum: 6 months Maximum: 48 months	Minimum: 12 months Maximum: 48 months
Lowest EMI	Rs. 2,658 per lakh	Rs. 2,594 per lakh
Processing Fee	2.02% to 3.03% of the loan amount	2-3% of the loan amount.
Age	Minimum: 21 years Maximum: 58 years	Minimum: 21 years Maximum: 65 years
Prepayment Charges	Allowed after 0 EMI’s, Nil Prepayment Charges	Allowed after 6 EMI’s, Nil Prepayment Charges
Foreclosure Charges	Allowed after 1 EMI’s, Nil prepayment charges	Allowed after 6 EMI’s, Nil prepayment Charges

Calculating Interest on SBI Personal Loan

EMIs or Equated Monthly Installments are the way in which any personal loan from State Bank of India will need to be paid back. Each EMI consists of a portion of the principal amount as well as the interest. As the maturity year draws closer, the principal portion gradually increases and simultaneously the interest portion decreases.

The method for calculating the EMI on a personal loan can be mentioned as follows –

E = P*r*[(1+r)^n/((1+r)^n-1)]

Here E – Monthly EMI, r – rate of interest per month, n – number of years.

Factors affecting SBI Personal Loan Interest Rates

SBI personal loan interest rates can change for any individual who has been approved for availing a personal loan. The approval process might be dependent on several factors such as –

1. Personal loan amount – Based on the amount of personal loan applied for, the interest rate might be changed beyond the advertised rate for specific customers or categories of customers
2. Tenure of the personal loan – Based on the discretion of the bank, a longer tenure might have a lower or higher rate of interest
3. Repayment capacity – State Bank of India will check repayment capability of a customer. Depending on the amount of cash inflows and transactions carried out by a customer, the bank might offer some leniency on personal loan interest rates
4. Income – Income is important for loan eligibility as well. Additionally, the bank may change the interest rate for a personal loan based on the income of a customer
5. Assets – Presence of fixed and movable financial assets play a crucial loan in improving the financial picture of one’s life. Based on the same, State Bank of India might provide a preferential rate of interest for personal loans
6. Relationship with the bank – An existing customer of State Bank of India is bound to get preference when applying for a personal loan and the bank might consider providing a better rate of interest to the customer
7. CIBIL scores – Approval of a personal loan takes one’s credit history into account. So, the CIBIL score might also work in favour of getting a better interest rate from the bank

In spite of the above factors, any change in the advertised interest rates is at the sole discretion of the bank.