SBI Personal Loan Review: Interest Rate, Eligibility, Apply

SBI Personal Loan Review: Interest Rate, Eligibility, Apply

SBI does not advertise the lowest personal loan interest rates of lenders in India, but is a good backup option for prospective borrowers.

Good for

  • Prospective borrowers seeking a backup financing option
  • Pensioners seeking a personal loan

Bad for

  • Individuals seeking the most cheapest personal loans
  • Individuals seeking very large loans
  • Individuals seeking loans with tenures of more than 5 years

Editor's Rating


SBI does not advertise the lowest interest rates of personal lenders in India; however, the bank's rates are close to the market average, making the bank a decent backup option for individuals that are unable to obtain loans elsewhere. The bank also offers one of the lowest interest rates for personal loans for pensioners, making it a decent option for retirees.

Summary of SBI's Personal Loans
Interest Rates: 11.95% - 15.40%
Loan Amount: Rs. 25,000 to Rs. 15 lakh
Loan Tenure: Up to 5 years
Current Promotion: Processing fee waived until November 30, 2018

Table of Contents

What Makes SBI Personal Loans Stand Out to Borrowers

SBI does not offer the cheapest personal loans in India, so it should not be the first choice for most prospective borrowers. For instance, SBI's personal loans have floating interest rates of 11.95% - 15.40%. These rates are very close to the average floating interest rates for personal loans in India. However other banks offer more competitive personal loan rates. Therefore, it is best to view SBI as an alternative worth considering if you are not approved for a loan from another bank.

Additionally, SBI does not offer loans with the longest tenures. Like many other lenders in Singapore, it offers personal loans of up to 5 years in duration. It also does not offer the largest loan quantums, with its maximum loans capped at Rs. 15 lakh. Still, for smaller loan sizes, SBI may be worth considering, depending on the rates that your are offered or that you negotiate, especially if you are unable to obtain a loan from other lenders.

Estimated Cost of SBI's Personal Loans

Duration (Years)Processing FeeEffective Interest RateMonthly PaymentTotal Cost
11%12%Rs. 88,849Rs. 76,186
21%12%Rs. 47,074Rs. 1,39,763
31%12%Rs. 33,214Rs. 2,05,715
41%12%Rs. 26,334Rs. 2,74,024
51%12%Rs. 22,245Rs. 3,44,667
*Assuming loan of Rs. 10 lakh, total cost includes processing fee

SBI's lowest interest rates are applicable for loans to pensioners and individuals with great credit. These rates are not the lowest available in their respective categories, but are among the cheaper rates available, making them worth considering for applicants that have been unable to obtain financing from other lenders.

Personal Loan TypeInterest Rate
Xpress Credit Personal Loan12.00% - 15.00%
Xpress Credit Personal Loan - IT Employees Scheme13.40% - 15.40%
Xpress Credit Personal Loan - Elite Scheme11.00% - 12.75%
Xpress Credit Personal Loan - Non-Permanent Employees12.90% - 15.25%
Xpress Credit Personal Loan - Defence/Para-Military/Indian Coast Guard12.00% to 12.50%
Xpress Power Personal Loan12.10% - 13.75%
SBI Pension Loan11.95%

Who Can Apply: Eligibility Criteria

Consider this if you need a backup option to cheaper personal loans

Required Monthly Income Rs. 15,000
Min. Loan Amount Rs. 25,000
Max. Loan Amount Rs. 20 lakhs / 24 times NMI
Processing Fee 0.01
Loan Tenure 6 months to 6 years

In order to be eligible for SBI's personal loans, applicants must earn at least Rs. 5,000 in net monthly income. Additionally, borrowers are eligible for loans as large as 24 times their monthly income, up to Rs. 15 lakh. It also requires that loan applicants are employed by government agencies, Public Sector Undertakings (PSUs), educational institutions of National Repute and select corporations. SBI does not detail further eligibility criteria on its website; however, many other banks require that borrowers are at least 21 years old and have a reliable income source.

Other Charges and Fees

There a number of fees associated with SBI's personal loans, all of which are standard among personal lenders in India. For example, the bank charges a processing fee of 1% and fees for early and late repayment. We recommend that borrowers stick their payment plan in order to make on-time payments in order to avoid driving up the cost of their loan.

Processing Fee1% of the Loan amount + applicable tax
Early Payment Fee3% on prepaid amount
Late Payment Interest2% per month on EMI / Principal overdue

How to Apply: Application Process

If you are interested in SBI's personal loan, you must fill out an application form and submit required documents. These documents include proof of identity, address, income and employment.

SBI Personal Loan Application - Required Documents

  • Photograph
  • PAN Card, Voter ID, Driver's License or Passport
  • Utility Bill, Property Tax Receipt, Ration Card, Passport or Voter ID Card
  • Latest Salary Slip, Latest form 16, Salary Account Statement for last 6 months or Audited/Certified ITR for last 2 years
  • Letter from employer
William Hofmann

William is a Product Manager at ValueChampion, focusing on banking and SMEs. He previously was an Economic Consultant at Industrial Economics Inc.