All of us tackle financial problems in our lives, but what if there aren’t enough savings left to deal with the same? In such a case, you can rely on an SBI personal loan. A type of product designed for those who don’t have any collateral to borrow money. Here, the bank will offer you the money based on your income and other factors. Let’s know more about this product below.
Details of SBI Personal Loan
Before borrowing a loan from SBI, you should have your facts clear as shown below –
What Amount Can You Borrow?
The minimum amount you can borrow from SBI is INR 25,000 and the maximum amount is INR 20 Lakh or 24X the monthly income. So, you can see the maximum loan disbursal depends on your income. See whether you meet the eligibility criteria or not. Because you need a minimum monthly income of INR 15,000 to borrow an SBI personal loan. And a regular cash flow is important in this type of loan as there is no asset the bank can cease in case you default. So, the loan repayment responsibility falls on you only. If you don’t pay the money back, it can lead to a lower credit score which would further culminate in rejection of loan or credit card applications later.
Current SBI Personal Loan Interest Rate
An interest rate should be as low as possible. Because a high-interest rate can lead to huge EMI payments. SBI Personal Loan interest rate ranges from 10.60-12.60% per annum, which is affordable given how others are pricing the loan at. To get the lowest rate possible, you need to follow these tips –
- Take a look at the credit score – Your previously paid loans or credit card bills build a score that shows other lenders how well you have repaid them. A score of 750 and above can help you negotiate for interest rate concessions.
- Check your income – To qualify for SBI personal loan, you need to have a specific income. And if you earn more than the same, it only helps you negotiate better.
- How much money you need – A high loan amount puts the bank at greater risk, so borrow the money only you need. Because a high loan amount can gradually increase the interest burden. So, don’t be greedy even as you’re eligible for SBI personal loan. Taking the loan at the best rate and when you need it will help you financially.
- Find a co-borrower – You can reduce the risk by sharing it with another person. To do the same, you need a co-borrower who meets the SBI personal loan eligibility criteria. And once you do that, you can talk to the service provider about the interest rate.
What’s the Repayment Period?
SBI personal loan comes with repayment tenures ranging from 12-60 months. When you choose your tenure, put it inside the EMI calculator to see what amount you’ll be paying back to the bank. And if that fits you, proceed with the loan application process.
Once the loan comes to your bank account, it is your responsibility to pay it back through EMIs. And with options like prepayment, you can reduce the payable amount whenever you receive a bonus. This way, you can get rid of the debt obligations faster and maintain a good credit score. With the SBI personal loan paid off in full, your credit history will take a huge leap that further allows you to take loans or credit cards later.
So, if you’re facing a financial crisis, check your SBI personal loan eligibility and SBI personal loan interest rate and then apply for the money. Meet your needs with the same and pay it back in equated monthly instalments.