SBI Personal Loan Interest Rate for Govt Employee

04 Dec 2020 // 20 min read // Personal Loans
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If you are a government employee who is thinking of applying for a Personal Loan you are lucky to have a Personal Loan option with maximum benefits, and that too, on the customised terms & conditions from the banking major-the State Bank of India.

SBI is the name to reckon with. It is the largest public sector bank in India with an impressive network of branches spread all across the country. The Personal Loans by SBI are particularly popular for the customer-friendly application process and low rate of interest. The bank extends different Personal Loan products such as SBI Saral Personal Loan, SBI Xpress Credit Personal Loan, and SBI Personal Loan to cater to a varied base of customers.

The SBI offers separate Personal Loan products to meet the distinct needs of different segments such as salaried, self-employed, pensioners, etc. Likewise, they have designed a customized Personal Loan for Government Employees with some of the striking features and benefits.

SBI Personal Loan Interest Rate for Govt Employees

Types Of SBI Personal LoanInterest RatesProcessing FeeLoan Tenure
SBI Xpress Credit10.10% - 13.85%1.50% of loan amount (minimum Rs. 1,000 & maximum Rs. 15,000) + GST6 months to 6 years
SBI QUICK Personal Loan10.85% - 12.85%1.50% of loan amount (minimum Rs. 1,000 & maximum Rs. 15,000) + GST6 months to 6 years
Pension Loan9.75% - 10.25%1% of loan amount (minimum of Rs. 1,000 & maximum Rs. 10,000) + GST2 years to 8 years

SBI Personal Loan for Govt Employees

Here is a quick list of features and benefits of Personal Loan by SBI for government employees:

Loan Amount: This SBI Personal Loan can be borrowed for a minimum of Rs. 24,000 and the maximum of 24 times the net monthly income or Rs. 20 lakhs.

Lower Interest Rate: SBI charges lower interest rates on Personal Loan for government employees, starting at 10.10% p.a.

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Low Processing Fee: SBI Xpress Credit scheme involves a processing fee of up to 1.50% of the loan amount, minimum Rs. 1,000 and maximum Rs. 15,000 + GST. The processing fee for Jai Jawan Pension Loan and Clean Overdraft is Nil.

Minimal Documentation: To avail the swift disbursal of Personal Loan, you need to ensure timely submission of documents after the loan approval. Keep following ready for the same:

Identity Proof (anyone): Pan Card/ Voter ID/ Passport/ Driving License/ Adhaar Card

Address Proof (anyone): Adhaar Card/ Passport/ Driving License/ Voter ID/ Latest Utility Bills

Income Proof: Last 3 months’ bank statement; Salary Slips of last 3 months and salary certificate (for employed individuals); Latest ITR/ Form 16 (for self-employed individuals)

Others: Duly filled application, Passport sized picture and processing fee cheque.

Check Personal Loan Eligibility

Experience:  You must have a minimum work experience of 1 year.

Repayment Period: The loan tenure can be between 6 months to 6 years or up to a residual job period.

Collateral: No loan security is required to apply for Personal Loan.

Credit Score: Being an unsecured loan, you need to have a good credit score to get the loan approval. You would require a minimum of 700 CIBIL score to get the loan approval.    

Eligibility: Government employees working with the following departments can apply for SBI Xpress Personal Loan, provided they have an SBI Salary Account:

  • Employees of Central, State, and Quasi-Government
  • People working with central Public Sector Units (PSUs)
  • People working for a profit-making State Public Sector Units (PSUs)
  • National level Educational Institutions
  • Besides, employees of Select Corporates, having a business relationship with the Bank as well as other Corporates, fulfilling bank’s terms & conditions can also apply.
  • The applicant should be a minimum of 21 years old, and the maximum age limit is 58 years.
  • You need to have a minimum net monthly salary of Rs. 5,000 from the departments as mentioned above, to be eligible for the SBI Xpress Personal Loan.
  • The EMI should not be more than half of the net monthly income.
  • The applicant can also benefit from the overdraft (OD) facility. The OD can be availed for Rs. 5 lakhs to Rs. 15 Lakhs, or 24 times the net monthly income. The OD is linked with DP (drawing power).
  • The School Teachers can borrow the maximum of 12 months Gross Salary under both Personal Loan and Overdraft.

Facility to apply for Second Loan:

After one year of your Xpress loan, you can apply for a second Xpress loan. Only those with regular repayment record would be eligible for the same. You cannot borrow more than two personal loans on your name. Also, it is mandatory to maintain an overall EMI to net monthly income ratio of 50%. Neither a guarantor nor collateral is required to avail a second personal loan.

Penal Interest:

A penalty is applicable on overdue. On every EMI due, a penal interest of 2% p.a. will be levied over and above the interest rate for the period of default. If part of EMI is pending, penal interest would be waived off.

Prepayment Charges:

A prepayment charge of 3% on the prepaid amount will be levied on both part and full prepayment of the loan before the term. However, if a new loan account is opened to prepay the loan, no charge is levied.

SBI Personal Loans for Govt Employees Calculator

SBI offers various personal loan schemes for government employees. It is useful to check your loan amount eligibility and EMI amount before applying for SBI personal loan. For this purpose, you can use SBI Personal Loans for Govt Employees Calculator. You can find this EMI Calculator under the Tools & Calculators section on SBI’s website. Just enter the principal loan amount, annual rate of interest, and loan tenure in the EMI calculator to know the EMI to be paid with overall cost of the loan.

Read More: How to Get Better Personal Loan Interest Rate from Bank of Your Choice?

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