Renovating a house and needing lump sum money? Visit the SBI branch office and ask for a personal loan from the bank representative. The concerned official will apprise you of the details of this product. Now, if you’re ready for it, submit the loan application. You can even apply for SBI Personal Loan online. But before applying, gather details of SBI Personal Loan to choose it at the best terms & conditions. Let’s read further for the same.
How Much Can SBI Provide?
You can borrow a maximum of INR 20 Lakh from SBI without pledging any collateral. Such loan amounts will be offered to you based on your income and repayment potential. And SBI will check the applicant’s repayment capacity using information like credit history, salary slip and bank statement. With the help of all these documents, SBI can assess the applicant’s flow of income, monthly expenses and previous repayment record.
What is the SBI Personal Loan Interest Rate?
SBI Personal Loan Interest Rate stands at a minimum of 9.60% per annum. And the rate of interest is based on the two-year marginal cost fund-based lending rate (MCLR) of SBI which is 7.25%. To get the minimum rate of interest on your borrowed money, you need to ensure SBI that you’re eligible for the same. To prove your creditworthiness, you need to earn high and have a spotless repayment record.
Charges Applicable on the SBI Personal Loan
The bank will charge you the following fees –
- The processing fee will be deducted from your loan amount and subject to 1.50%. This would be a maximum of INR 15,000+GST.
- Penalty fee when you miss an EMI payment which is 2% over and above the due amount.
- Prepayment fee of 3% of the outstanding loan amount
What is the Repayment Facility of SBI?
SBI allows you to repay the personal loan in equated monthly installments over 72 months. You can choose the repayment period you want. In this, you could take assistance from the SBI Personal Loan EMI Calculator, an online tool that generates an approximate EMI amount.
To use this online tool, you need to insert the following details –
- Loan amount
- Interest rate
Let’s see the below example to understand how the SBI Personal Loan EMI Calculator works.
Rama is renovating her house and in the middle of this faces a financial crisis. Now, she needs a lump sum of money to continue renovating her house. She started searching for loans and came across SBI Personal Loan.
She is eligible for a loan of INR 9 Lakh which can be used to complete renovation. But she uses the SBI Personal Loan EMI Calculator to see how much the EMI she will need to pay in return.
In the EMI calculator, Rama enters the following details –
- Loan amount – INR 9 Lakh
- Interest rate – 11.25% per annum
For a three-year tenure, Rama will be paying an EMI of INR 29,572 and interest of INR 1,64,574
For a four-year tenure, Rama will be paying an EMI of INR 23,370 and interest of INR 2,21,779
For a five-year tenure, Rama will be paying an EMI of INR 19,681 and interest of INR 2,80,835
For a six-year tenure, Rama will be paying an EMI of INR 17,246 and interest of INR 3,41,722
Rama chooses the tenure of four years where the EMI comes under her budget and the interest liability isn’t also high.
So, plan your house renovation with SBI lowest Personal Loan interest rate, and don’t forget to use the EMI calculator too. The affordable interest rates coupled with valuable inputs from the calculator will result in a smooth repayment experience.