SBI Personal Loan Interest Rates

Disclaimer: State Bank of India (SBI) is not a partner of MyMoneyMantra for personal loans. All information is for reference only. MyMoneyMantra has no affiliation, sponsorship, or connection with SBI for personal loans. For details on SBI personal loans, please contact SBI directly.

SBI offers the following personal loan variants:

• SBI Xpress Elite: SBI Xpress Elite is a customised personal loan scheme for all high-value salaried customers who have a Salary Account with SBI and earn a monthly income of Rs. 1 Lakh or more.
• SBI Xpress Flexi is an Overdraft Personal Loan for salaried customers who earn Rs. 50,000 or more monthly and have a Diamond/ Platinum/ Rhodium category Salary Package Account with SBI. 
• SBI Real-Time Xpress Credit: Real-Time Xpress Credit (RTXC) is an instant personal loan facility with a fully digitised loan journey designed for customers who maintain a Salary Package account with SBI. The SBI online personal loan interest rate for this scheme may be favourable. 
• SBI Xpress Credit: SBI Xpress Credit Personal Loan is offered to salaried employees who have salary accounts with SBI.
• Pre-approved Personal Loans (PAPL) on YONO: If you have an account with SBI, you can avail of SBI PAPL instantly at your convenience through the YONO app on a 24*7 basis in just 4 clicks.
• SBI Pension Loan: It is a loan for defence personnel, Central & State Government, and Family Pensioners who are below 76 years of age and whose Pension Payment Order is maintained with SBI.

The interest rate of SBI for personal loans and other applicable charges are explained in the table below: 

• Processing fees: SBI charges a processing fee of up to 1.50% of the loan amount (minimum Rs. 1,000 + GST and maximum Rs. 15,000 + GST). However, the processing fee is waived from 01.09.2024 till 31.01.2025 as a special offer).
• Prepayment charges:
  • Any prepayment of EMI in full/part and closure of account before the end of term: 3% on the prepaid amount. No prepayment charges are levied if the loan account is closed after the completion of 3 years;
  • For defence customers: 100% waiver of prepayment charges if the loan is closed after 6 months from the date of sanction;
  • For Government/ Corporate sector borrowers: No prepayment charges if the loan is closed after 6 months from the date of sanction from the proceeds of a new loan account under the same scheme with the Bank.
  • No prepayment charges for Platinum and Rhodium variants of Corporate Salary Package customers if the loan is closed after 6 months from the date of sanction.
  • For all takeover cases by other banks, irrespective of the tenure (including defence customers): 3% on the prepaid amount (in case of prepayment).
• Penal charges in the event of default in payment of any instalment or any irregularity in the loan account:
  • Irregularity up to 60 days: 2.40% p.a. on the irregular portion for the period of irregularity.
  • Continuous irregularity for a period beyond 60 days: 5% p.a. on the outstanding for the period of irregularity.

Below is the comparison of SBI personal loan ROI with the interest rates of other banks:

The following are the key factors that influence personal loan interest at SBI:

• Competitor ROI policies: One of the major factors that the banks need to take into consideration is the competition and also the market levels for the Personal Loan that is offered at a given interest rate.
• RBI's monetary policies: The monetary policies of RBI have a major effect on the SBI Bank personal loan interest rate as it influences the same by setting certain standard rates and also stipulating bank reserve requirements.
• Inflation: Inflation gives rise to higher interest rates when it comes to Personal Loans because the lender has to demand a higher rate to compensate for the reduction in the purchasing power of the money that will be paid off by the customer in the near future.
• Credit score: A good credit score of 700 or above confirms the timely repayment capacity of the borrower and also makes them trustworthy to the bank which will in turn help in getting better interest rates on personal loans in SBI Bank.
• Bank history: The existing valued customers of the bank who have maintained a cordial relationship with the bank can negotiate with the bank for a better rate of interest.
• Area of employment: Self-employed individuals are offered personal loans at a higher rate from SBI than salaried persons.
• Income: The higher income of an individual acts as a security and also ensures the bank of the loan repayment by the customer. Hence, applicants with higher earnings get better rates than those who have low-income levels.
• Type of borrowers: SBI personal loan interest rate for govt employees may differ from interest rates for other borrowers. The type of borrower also affects the interest rate on personal loans at SBI.

To calculate the personal loan from SBI bank rate of interest, you can use the formula given below: 

Interest = Principal × Rate × Tenure. 

You can also use the SBI personal loan EMI calculator to determine the EMI, principal amount, interest amount, and total amount payable.

You can follow the tips given below to avail of low SBI bank interest rates on personal loans:

• Contact SBI if you already have a deposit/lending account.
• Check for interest rate concessions during festive seasons.
• Make sure you are aware of the latest SBI personal loan interest rate always and apply for the loan when rates go low.
• Maintain a good credit score of 750 or above.
• Apply for a smaller amount. For instance, the SBI personal loan interest rate of 1 Lakh could be lower than the Rs. 30 Lakh personal loan.
• Visit online fintech platforms to compare the current SBI personal loan interest rate with rates offered by other lenders.
• Enquire about the pre-approved personal loan offers from the bank.