Things you should know about SBI Personal Loan Interest Rate


SBI personal loan is a collateral-free loan. Although there are various lenders in the financial market offering personal loans, SBI Bank has its benefits. There are few things that a borrower should keep in mind while applying for SBI personal loan like rate of interest, required documents for the loan approval, etc. Let’s have a quick overview of the different aspects of SBI personal loan. A borrower can get flexible loan repayment tenure, competitive interest rate, low processing fees and other benefits with SBI personal loan.

As we know the end use of the personal loan amount could be anything from personal expenses like to fund the child’s wedding, to fund the dream vacation, for a medical emergency or any business expenses. It can even use to consolidate the credit card debt since its rate of interest is generally lower than the credit card rate of interest.

At the same time, it is crucial to note that personal loans are one of the most expensive loans. They come with a comparatively high rate of interest since they are ‘unsecured’. The SBI personal loan interest rate varies based on several factors like the availed loan scheme, the repayment record, credit history, net annual income, debt-to-income ratio, employment stability, and others.

SBI offers a wide range of personal loan schemes from which a borrower can choose the best-suited one. Let’s have a quick look at them:

  • Xpress Credit Personal Loan

SBI Xpress Credit Personal Loan can be availed by those who maintain a salary account with SBI Bank. Here are key features of Xpress Credit Personal Loan:

  • A borrower can acquire a minimum loan amount of Rs. 25, 000 and a maximum of Rs. 20 lakhs.
  • Low processing fees are charged.
  • This loan scheme can also avail as the second loan.
  • The competitive interest rate is charged.
  • No security or guarantor is required for the SBI Xpress Credit Personal Loan.
  • SBI Xpress Power

This SBI loan scheme can avail by those who do not maintain their salary accounts with SBI. Following are some features of SBI Xpress Power:

  • A borrower can acquire the minimum loan amount of Rs. 25,000 and maximum of Rs. 15 lakhs/ 24 times NMI (Net Monthly Income).
  • SBI Xpress Power involves minimal documentation.
  • The loan repayment under this loan scheme can be done through NACH/SI.
  • There is no compulsion to maintain a salary account in SBI Bank under this loan scheme.
  • No hidden costs are charged in SBI Xpress Power.
  • SBI Pension Loan

SBI Pension Loan is designed while focusing on the needs of the pensioners of Central or State Governments or Defense or Family Pensioners. Some of the key features of SBI Pension Loan are:

  • Quick and hassle-free loan processing.
  • SBI Pension Loan requires minimal documentation.
  • Easy EMIs through SI.
  • Zero hidden costs.
  • Low processing charges.

Factors that affect the Personal Loan Interest Rates

Currently, almost every bank in India is offering personal loan interest rates ranging from 10.75% to 21%. The variation in the rate of interest is primarily owing to the difference in the applicant’s credit profile. Here is a sneak peek on factors that play a major role in personal loan interest rate offers of the banks and NBFCs:

Credit Score

The credit score is a three-digit numeric score usually ranging from 300 to 900 points. It primarily defines the applicant’s worthiness to avail the personal loan. Higher the score attracts the better is the chance of getting a personal loan at a low-interest rate. A score of 700 or above is considered a good credit score. The banks and financial institutions calculate the risk of lending based on the credit score.


The status of applicant employment helps the financial institutions in calculating the stability of the income. Certainly, the employees of listed companies, central and state governments and PSUs are considered as a better prospect for the better rate of interest offers.

Work History

The stability of an applicant in an organization also affects his/her chances for loan approval. Particularly the self-employed individuals need to prove the continuity of the business and income stability to be eligible for a low-interest personal loan.


Age is another important factor that determines the eligibility for a personal loan.

Other Factors

Other factors like the gross income, take-home salary, outstanding loan instalments, and credit card liabilities also affect an applicant’s prospect for availing a personal loan.

SBI Personal Loan Eligibility

SBI personal loan eligibility varies based on many factors like the availed loan scheme availed, etc.

Xpress Credit Personal loan

  • The borrower’s minimum monthly income should be Rs. 15,000.
  • EMI/NMI ratio of a borrower should not be more than 50%.
  • The borrower is required to maintain a salary account with SBI.
  • The applicant should be an employee of any of the following organizations:
  • Central and state governments
  • Central and state PSUs
  • Educational institutions with a national reputation

Xpress Power Personal Loan

  • No need to have a salary account in SBI.
  • The borrower’s minimum gross monthly income should be Rs.50,000.
  • Applicants who are employed with the following entities can apply for this loan:
  • Central or state governments.
  • Defense establishments.
  • Educational institutions that have a national reputation.

SBI Pension Loan

  • The borrower’s age should not be above 76 years.
  • A borrower should be a central or state government pensioner, defense pensioner or a family pensioner to avail of this loan scheme offered by SBI.
  • The pensioners of armed forces include Paramilitary Forces, Army, Rashtriya Rifles, Air Force, Navy, Coast Guards, and Assam Rifles. The pension account should be with SBI.
  • An authorized member can acquire the family pension scheme of SBI.
  • The family pensioner’s age should not be more than 76 years.

SBI Personal Loan Documents Required

The documents requirement differs based on several factors. Below is the list of generic documents that an applicant needs to submit if he/she wants to avail the SBI Personal Loans:

  • Duly signed and filled the application form
  • Identity Proof
  • Proof of Residence
  • Processing Fee Cheque
  • Last 3 months Bank Statements
  • A borrower requires submitting the salary slip
  • Income certificate with the latest Form-16 for salaried borrowers
  • Profit and loss account statements, the balance sheet for self-employed professionals.
  • Last three years ITR

In the end, one can find multiple bank-offers to meet the personal loan requirement. While one bank will offer a low-interest rate, the other would vouch for the fast loan approval or same-day loan disbursal. So, it is essential not to hasten the decision. You must compare available personal loan deals from the different lenders before making the final decision.

Herein, it is also important to know that besides the rate of interest, there are other costs also involved like processing charges, foreclosure charges, bounce charges, etc. Carefully assess all the aspects and related cost of the personal loan before applying for the one. It is very crucial to use the online EMI calculator to estimate the loan installment according to the budget correctly. Alternatively, you can also go for the professional help to borrow exactly according to the repayment capacity.

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