SBI Personal Loan: Know interest rate, required documents, other details

Do you need personal loan in order to meet your requirements and financial crisis? You can avail or apply for the same in the State Bank of India (SBI).

As per the information provided by the bank, the minimum loan amount under personal loan provided by it will be- term loan: Rs 25,000; overdraft: Rs 5.00 lakh.

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It can be noted that the overdraft will be subject to monthly reduction in drawing power so that drawing power becomes nil in 72 months.

The maximum loan amount will be of Rs 20 lakh subject to 24 times Net Monthly Income (NMI) and applicable EMI/ NMI = 50 percent for all categories [except employees of government aided schools where it is 12 times Gross Monthly Income (GMI)]. 

As per the information provided by SBI on its official website, the interest rate on personal loan starts from 9.60 percent p.a.

Documents required:

You will have to provide the below mentioned documents along with the loan application form:
1. Latest passport size photographs – 2
2. Copy of identity card issued by the employer
3. Bank account
4. Last 6 months’ salary slip or latest Form 16 (in case of Income Tax Payee)
(a) Permanent Account Number (PAN).
(b) At least one copy of the Officially Valid Documents (OVDs) mentioned below, as proof of identity and current address:
i. Passport
ii. Driving license
iii. Proof of possession of Aadhaar Number
iv. Voter's Identity Card issued by Election Commission of India
v. Job card issued by NREGA duly signed by an officer of the State Government
v. Job card issued by NREGA duly signed by an officer of the State Government
vi. Letter issued by the National Population Register containing details of name and address.

Also no security is required to apply for the loan. The maximum repayment period will of 6 years or remaining period of service (whichever is lower), as per the information provided by the bank.

Interest:

On an annual reducing balance method, you will continue to pay interest on amounts you repay during the coming one year as the interest for the year is determined on the basis of the balance outstanding at the beginning of the year. In the case of the daily/ monthly reducing balance, your interest is calculated only on the outstanding loan amount, which reduces every time you pay off your EMIs or make any prepayments.

It can be noted that any prepayment of EMIs in full or in part and closure of account before the end of term will attract the prepayment charges of 3 percent on prepaid amount. While no prepayment/ foreclosure charges will be applicable if the account is closed from the proceeds of a new loan account opened under the same scheme.

For more details one can go to the official website of SBI at https://sbi.co.in/.