How does personal loan affect your credit

Know how Personal loan affect your credit and manage your loan through Loanyantra. Every now and then, you need a little help with your finances. A personal loan is one way to smooth your finances or get extra cash for a purchase. An unsecured personal loan can allow you to accomplish some of your goals without the need for collateral, or to share a specific purpose with the lender.

Personal loan interest rates, loan amount and tenure details – 

Bank Name Personal loan Interest Rate Minimum Tenure- Maximum Tenure Personal Loan Amount
Citi Bank 10.99% – 15.99% 1-5 years Max-30Lakhs.
Axis Bank 15.50% to 24% p.a. 1-5 years Min- Rs 50,000

Max-Rs 15 lakhs.

STANDARD CHARTERED BANK 10.99% – 14.49% 1-5 years Max- 30lakhs.
HDFC Bank 10.99% – 20.75% 1-5 years Max- 25Lakhs
FULLERTON 14% – 33% 1-4 years Max- 15lakhs
HSBC 11.29% p.a. to 17.5% up to 5 years Max- 30 lakhs
ICICI 10.99% to 22.00% per annum 1-5 years Max- 20lakhs
IDBI 12.75% to 13.75% up to 5 years Min- Rs. 50,000

Max-10lakhs

SBI 12.90% – 14.90% 5 Years Min- 25,000

Max- 15 lakhs

The above table lists the lenders with whom loanyantra.com has tie-ups. About every bank’s personal loan interest rates, you find at the end of the article.

But whenever you get any loan, it’s important to consider the impact on your finances and on your credit. It is always better to consider the personal loan affect on credit.
Before you apply for a personal loan, consider the credit score factors that are likely to be a part of the equation. Any debt impacts your credit — and that means a personal loan can affect your situation as well.
But that doesn’t mean the effects of a personal loan will be all negative. In fact, when used properly, a personal loan can have a net positive impact on your credit, and that means it can also have an effect on your life and finances beyond just your credit rating.

What happens to your credit when you apply for a personal loan? How does personal loan affect your credit?

When credit score calculated by CIBIL, there are five main credit score factors that each carry a specified weight:
Payment history: 35%
Amounts owed: 30%
Length of credit history: 15%
New credit: 10%
Credit mix: 10%
With a personal loan, the main things that affect your credit score fall under the categories “length of credit history” and “new credit.” When you apply for a personal loan, that represents an inquiry that will show up on your credit report and impact your credit score.

Things change if you are making a lot of credit inquiries in a short period of time, however. The more loans you apply for in a short timeframe, the bigger the impact on your credit history.
Your new credit will also have an impact on your credit history. Part of the calculation of credit history is the average age of your accounts. A new credit account, like your personal loan, brings down the average age of your accounts.
However, the impact shouldn’t be too huge, as long as you don’t have a lot of newer credit dragging on your score.
Once you get your personal loan, it’s important to pay attention to how you manage personal loan affect credit score, since that’s what will matter most to your credit score going forward.

Don’t let a personal loan bring down your credit score

Simply getting a personal loan isn’t likely to have a long-term negative impact on your credit. You might be surprised to discover that a personal loan can actually help your credit score in the long run.
Of the credit score factors, the most important item is your payment history.
As long as you make your loan payments on time and in full, your score will be impacted positively. The more on-time payments you have, the better your credit score.
With a personal loan, factors that affect credit score most are the payments you make and the mix that your loan adds to your credit profile.

Adding a personal loan to your credit mix can actually give your score a little boost. While credit mix is only 10% of your score, it can still provide a little help. Showing that you can handle an instalment loan as well as a revolving credit loan (such as a credit card) can add to your score.
The opposite is true, too. If you miss payments on your personal loan, you will be penalized. When you get any type of credit, it’s vital that you make regular payments in order to prevent damage to your credit score.
A personal loan is most dangerous to your credit when you don’t make payments.

Only borrow what you need

Any time you borrow money, it is important to limit your loan to what you need to accomplish your goals.
A personal loan can be a way to consolidate your debt to make it easier to pay off, or to help you smooth your cash flow while you restructure your finances. No matter what you use your personal loan for, don’t borrow more than you can handle and avoid paying late.
Your instalment loan won’t have the same impact in the credit utilization measure of your credit score, but it can still impact decisions about your finances in the future.
Lenders and others look at your credit file for red flags. If you have a large personal loan, it can affect your ability to get other credit and financial products, even if you have a good credit score. Lenders and others assess risk, and a large personal loan can make you a bigger financial risk.

Personal loans can help your finances, and even provide a boost to your credit, but you need to be careful about how you apply for and use them.

Personal loan interest rates (as of May 08th 2018)

Bank Personal Loan Interest Rates
Citibank 10.99% – 16.49%
SBI Personal Loan 12.50% – 16.60%
HDFC Bank Personal Loan 10.99% – 20.00%
ICICI Bank Personal Loan 10.99% – 22.00%
RBL Bank 13.99% – 16.00%
Canara Bank 13.65% – 13.65%
Dena Bank 13.00% – 14.00%
Union Bank of India 14.40% – 14.40%
Vijaya Bank 12.50% – 13.50%
Andhra Bank 13.05% – 14.30%
Allahabad Bank 13.10% – 13.10%
Bajaj Finserv 11.99% – 15.50%
Standard Chartered Bank 11.49% – 20.00%
Bank of Baroda 11.60% – 16.60%
Corporation Bank 12.75% – 13.75%
IDBI Bank 13.20% – 13.75%
Indian Bank 14.35% – 14.85%
IDFC Bank 11.00% – 19.50%
Axis Bank 11.25% – 24.00%
Tata Capital 11.99% – 18.00%
Fullerton India 14.00% – 34.00%
IndusInd Bank 11.99% – 23.00%
Kotak Bank 11.50% – 24.00%
IIFL 12.99% – 19.99%
Yes Bank 11.99% – 20.00%
Bank of Maharashtra 15.10% – 15.10%
Federal Bank 13.32% – 15.12%
Indian Overseas Bank 12.70% – 15.25%
Syndicate Bank 14.20% – 14.20%
Karur Vysya Bank 13.90% – 16.40%
Punjab National Bank 12.25% – 15.25%

Why go through Loanyantra for a personal loan –

Loanyantra, an online platform for all your financial needs. It is India’s first ever fintech company to manage your loan till the closure. Usually, you find personal loan interest rates are a little higher when compared to any other loan interest rates. Here is when loanyantra helps you getting a personal loan at the best rate and also get alerts as long as you are in the loan about the current market interest rates. Also avail wonderful offers like cashback and referral offers by getting a loan through loanyantra.com.

5 Ways to Get Personal Loan for Employee of Proprietorship Company

There are ways to get personal loan or home loan for  an employee working in a Proprietorship Company or Firm.

While in emergency, the most sought option to arrange money is personal loan provided all other alternatives such as own savings or help from acquaintances fail to meet the requirement.
However before granting loan; lenders first check the income and the employer’s credibility. If the applicant works in a big company (public or private limited) and meets all other criteria including CIBIL score, salary etc. then approval is quick.

However if someone works in a proprietor firm then it becomes a challenge to get finance. This is because lender also check the credibility of the company applicant works for. Since in a proprietorship company ownership is held by a single person, so risks such as sustainability, turnover etc. always exists. For e.g. if anything unfortunate happens to the proprietor, then the whole business may come to standstill and there will be uncertainty in the job of employees i.e. company may shut down or workers will not get salary and so on. And in such cases, if any employee is granted a personal loan then repayment will become difficult due to no income.
Although there are loans which you can get by keeping securities as collateral with the bank. We would be discussing such financing options in this article.

Personal loan for employee of proprietorship firm
Personal loan for employee of proprietorship firm_loanyantra

So how can employee of proprietorship firm get personal loan? There are few solutions as follows:
High income: If the applicant works in a proprietor run company but earns good income which is higher than required by the lender then he/she has higher chance of finance approval. In addition to this, if the company is into business for a long time and profitable too then also the chances of getting personal loan increases. Salary slip and bank statement as required by the lender will help to prove the income.

Against fixed deposit: If the borrower has FD account with the bank then he can get personal loan against this FD at a lower interest rate with minimal documentation. Most importantly lender won’t check the employer’s credibility. This type of a loan is secured as the FD is pledged with the bank. And applicant will get loan amount which is 80% – 90% of the FD amount.

Against securities: Employee from proprietorship firm can also get personal loan by keeping LIC policy, gold, mutual fund, ETF, and savings bonds as a security with the bank. Calculation of the loan amount varies with each financier. Some may have a cap on the amount while others may lend money depending on the market value of the pledged security.

Peer lenders: If all of the above solutions fail then individual working at proprietorship company can apply for personal loan at peer to peer online loan marketplaces. Borrower gets an option to choose the investors (basically money lenders) and at the same time bargain for interest rate. Although every P2PL company has its own eligibility criteria, applicant has vast options to choose a lender. Also called as PTPL, these marketplaces are secured way of getting personal loan and charges are very less compared to banks.

Private money lenders: This option is mentioned but should be avoided as much as possible. Because they take control of your assets such as property or gold or any other till the complete repayment is done. And there are cases of fraudulent activities conducted by these lenders of forging the documents and taking control of the assets. Negative sides of getting personal loan from them is that interest rate charged is very high and recovery process is very bad. Ofcourse there are few benefits such as no credit history check, quick disbursal of money, flexi-repayment option, etc. as happens with banks.

So as mentioned above there are multiple options for employee of a proprietor owned company to get personal loan. Remember to payback all the EMI on time and fully which will help in getting a good CIBIL score.

Personal Loan for Employee working for Proprietorship Firm – 

Usually, the personal loan tenure is minimum of 1 year and maximum 5 years. It is easy when you go with Loanyantra.com as dedicated relationship manager explains you about your eligibility, different banks criteria, interest rates and about legal documents. All you need is your salary slip, address proof, reliable and profitable proprietorship firm, for personal loan for employees of proprietorship firm. All you need to do is just give a missed call to 040-71011991. And get a call back and get personal loan instantly as an employee of a proprietorship firm.

 

Personal loan from HDFC Bank

Personal Loan from HDFC Bank Via Loanyantra.com

HDFC Bank’s Personal Loans are easy-to-get, quick and convenient. You can use a HDFC Bank personal loan for a variety of purposes, including travel, wedding expenses, home renovation, in a medical emergency or to buy a gadget.

HDFC Bank Private Banking Group has been recognized as the No. 1 Bank in the High Net Worth clients’ category in Euromoney’s Private Banking and Wealth Management Survey 12018.  Also awarded by Business Today as Best Bank of the year 2018, Best in Innovation, Fastest Growing Large Bank.

Private Banking Services are powered by the best technology that you have come to expect in all aspects of your life.

Loanyantra.com feels proud to partner with HDFC Bank, a giant in banking industry. Home loans and personal loans at a customised interest rate and a complete priceless loan monitoring and management is what loanyantra provides. It is a great choice to opt for a loan from HDFC bank via Loanyantra.com.

Out of many what HDFC offers in different sectors, HDFC Personal loans mark a really unique influence.

HDFC Personal Loans

HDFC Bank, India’s No 1 Bank, provides personal loans with hassle-free documentation and superfast disbursals.
Besides speedy and transparent processing, the Bank offers a host of other benefits on its personal loans including flexible tenures and competitive interest rates.
These unmatched benefits from HDFC Bank make the products among the best personal loans in India.

Features of Personal loan from HDFC Bank – 

  • Fulfil Your Every Need
    No matter what your needs, HDFC Bank can customise a Personal Loan for you. Existing HDFC Bank account holders can avail special offers, interest rates and charges. First-time Loan customers can also avail of a host of benefits.
  • Transfer Loan Balance with Ease
    Transfer your existing Personal Loan to HDFC Bank. Enjoy lower EMIs and SAVE on your interest payments
    Interest rates as low as 11.39% on the existing loan transfer
    Flat processing fee of only Rs. 1999.
    To transfer your loan balance, Loanyantra.com is one of the authorised channel partner to get you a personal loan from HDFC bank at a lower interest rate than the existing market rate. Also get a complimentary service of managing your loan till you close it.
  • Quick Eligibility Check & Disbursal
    Check your Personal Loan eligibility online or at select branches in just 60 seconds. Once all your papers are submitted, the loan will be disbursed in just one working day.
  • Stay Protected – Personal Accident Cover : For a nominal premium, you can avail of Personal Accident cover of up to Rs. 8 lakhs, and Critical Illness cover of up to Rs. 1 lakh. The premium for these policies will be deducted from the loan amount at disbursal. Applicable taxes and surcharge/cess will be charged extra.
Personal loan from HDFC Bank via loanyantra.com
Personal loan from HDFC Bank via loanyantra.com

Eligibility Criteria for Personal Loan From HDFC Bank –

The following people are eligible to apply for a Personal Loan:

  • Salaried doctors, CAs, employees of private limited companies, employees from public sector undertakings, including central, state and local bodies.
  • Individuals between 21 and 60 years of age
  • Individuals who have had a job for at least 2 years, with a minimum of 1 year with the current employer
  • Those who earn a minimum of Rs. 15,000 net income per month (Rs. 20,000 in Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Cochin)

Documentation Details for Personal Loan From HDFC Bank – 

Now in digital India, with Aadhar card the final and original proof, documentation has become very easy and accessible.

The following documents are required along with your Personal Loan application:
Identity proof (copy of passport/voter ID card/driving license/Aadhaar)
Address proof (copy of passport/voter ID card/driving license/Aadhaar)
Bank statement of previous 3 months (Passbook of previous 6 months
Latest salary slip/current dated salary certificate with the latest Form 16.

5 Things You Should Know before Applying for a Personal Loan from HDFC Bank – 

  1. You pay the loan in equal monthly instalments (EMIs). The loan will be paid through post-dated cheques. You can also pay through ECS or a standing instruction to debit your HDFC Bank account with the EMI amount. Calculate how much you need to pay each month through the EMI calculator. Or whenever there is a query regarding the loan interest rate or tenure, loanyantra.com clarifies if you are an existing loanyantra customer.
  2. No pre-payment permitted until repayment of 12 EMIs. Prepayment charges are applicable if you prepay the loan within 3-24 Months – 4% of Principal Outstanding,25-36 Months – 3% of Principal Outstanding
    >36 Months – 2% of Principal Outstanding. The additional charges (if any) are applicable in case you default or in case of SWAP (i.e. change the repayment mode).
  3. If you wish to change the mode of repayment of Personal loan from HDFC Bank, Post Dated Cheques(PDCs)/Security Cheques submitted towards loan repayment that have not been encashed, will be defaced and retained by the Bank.
    In case, you wish to have your old Post Dated Cheques(PDCs)/ Security Cheques to be returned to you, you should lodge a request at the Retail Loan Service Center or through PhoneBanking or email at www.hdfcbank.com/services within 45 days from the date of application of change in repayment instructions.
  4. You should mention in your loan application a Guarantor, a person who guarantees to pay for your debt as a default on a loan obligation. Also get the signature done and also check if the guarantor’s credit scoring is good.
  5. Once you close the personal loan from HDFC Bank, get all the documents back and get a NOC from the banker and ask him to inform the CIBIL to maintain your credit scoring.

Know more about Personal loan from HDFC bank via loanyantra and get the loan disbursed as fast as nowhere else. Get proper guidance at every step from Loanyantra’s dedicated executives.

 

 

 

Personal Loan FAQs

What is a personal loan?

A personal loan is a type of loan which can be used for your personal use like for a holiday, wedding, etc. Personal loan is comparatively easy to obtain when you are in urgent need. An important point to note is that personal loan comes at a higher interest rate as compared to other loans. Thus, you should only go for this, if you can repay it. You can take a personal loan for up to five years. As compared to other loans, the personal loan requires lesser paperwork. The amount of personal loan depends on the income of the person.

Am I eligible for a personal loan?

Any individual who has a regular source of income can take a personal loan; you can be a working professional, salaried person or a business owner.

What is the minimum amount of personal loan that I can take?

Yes, there is a minimum amount. Although, the loan amount is different for different financial institutions. Most of the money lenders have set the minimum loan amount to be 30,000.

What is the tenure of a personal loan?

The tenure for loan year ranges from 1 – 5 years. Few financial institutions also offer seven years loan tenure.

Can I have a co-applicnat for personal loan ?

It’s true that you can apply along with your spouse. Having a co-applicant increases your income bracket, thus making you eligible for a higher loan amount. But, at the same time, you should remember that a poor credit history of the co-applicant might adversely affect your loan application.

What is the basis for calculation of maximum loan amount?

In case of salaried people, the banks or the financial institution, from where the person is taking the loan, makes sure that the EMI of the loan should be 30% -40% of the total take home salary. If the borrower is already availing some other loan like home loan, car loan, etc. then, these factors are also taken into consideration while calculating the personal loan amount. In case of self-employed people, the profit earned in the most recent P/L Statement is considered. Banks also considers other liabilities of the applicant before calculating the EMI and loan amount.

What are the documents required for personal loan application?

Although, the documentation process is different for different financial institutions. But, there are a few documents which are commonly required by almost every financial institution and banks.

Here is the list of documents for personal loan that you must have while applying :

  • Income proof like salary slip for working professionals, ITR is required in case of self-employed individuals. Banks may ask for the most recent Profit and Loss Statement as well for business owners and self-employed individuals.
  • Address Proof
  • Identity Proof like Adhaar card, Pan card, passport, etc.

Is there any pre-payment charges in case the person wants to pre-pay the personal loan?

There are times when a person might want to pay off the loan before the loan tenure period, in that case, the banks or the financial institutions charge additional ad fees which are known as pre-payment or foreclosure. This amount usually ranges between 1%-2% of the principal outstanding amount. Again, some for some banks the foreclosure amount might be higher.

For any help regarding personal loan, Loanyantra is completely on your support. Get proper guidance and faster disbursal at a lower interest rate and also get cash back offers. All you need to do is just give a missed call to 040-71011991. Get a call back from a dedicated relationship manager.

 

 

Compare personal loan interest rates – 2018

Compare Personal Loan Interest Rates – 2018

Compare personal loan interest rates and get aware of which lender fits in your budget. Know more and calculate and save maximum on your personal loan.

Personal loans are the loans which offer higher flexibility, and  can get them quickly as compared to the other loans available in the market. If you are undergoing a financial crisis and don’t have funds, then you can opt for personal loan. However, certain objectives cannot be fulfilled with personal loan.

Here is the list of purpose for which you can get the loan and the objectives which cannot be sufficed with it.

Purposes for which loan is given
Payment of credit card
Child education
Land purchase
Medical expense
Wedding
Vacation

Purpose for which loan is not given
Home construction
Business expansion

Personal loans similar to any other loan, also has an interest rate. However, different banks have different personal loan interest rates. Here is the list of the prominent banks and their offered personal loan interest rates.

compare personal loan interest rate
Compare personal loan interest rate via loanyantra.com

 

Bank Personal Loan Interest Rates
Citibank 10.99% – 16.49%
SBI Personal Loan 12.50% – 16.60%
HDFC Bank Personal Loan 10.99% – 20.00%
ICICI Bank Personal Loan 10.99% – 22.00%
RBL Bank 13.99% – 16.00%
Canara Bank 13.65% – 13.65%
Dena Bank 13.00% – 14.00%
Union Bank of India 14.40% – 14.40%
Vijaya Bank 12.50% – 13.50%
Andhra Bank 13.05% – 14.30%
Allahabad Bank 13.10% – 13.10%
Bajaj Finserv 11.99% – 15.50%
Standard Chartered Bank 11.49% – 20.00%
Bank of Baroda 11.60% – 16.60%
Corporation Bank 12.75% – 13.75%
IDBI Bank 13.20% – 13.75%
Indian Bank 14.35% – 14.85%
IDFC Bank 11.00% – 19.50%
Axis Bank 11.25% – 24.00%
Tata Capital 11.99% – 18.00%
Fullerton India 14.00% – 34.00%
IndusInd Bank 11.99% – 23.00%
Kotak Bank 11.50% – 24.00%
IIFL 12.99% – 19.99%
Yes Bank 11.99% – 20.00%
Bank of Maharashtra 15.10% – 15.10%
Federal Bank 13.32% – 15.12%
Indian Overseas Bank 12.70% – 15.25%
Syndicate Bank 14.20% – 14.20%
Karur Vysya Bank 13.90% – 16.40%
Punjab National Bank 12.25% – 15.25%

However, personal loans are the loans which rescue at the crux of any financial crisis. Lenders usually don’t ask the reason behind lending but look for the proper documents. Know more about genuine reasons to get personal loan..

Reasons to Get a Personal Loan

Why go through Loanyantra for a personal loan –

Loanyantra, an online platform for all your financial needs. It is the first ever fintech company to manage your loan till the closure. Usually, you find personal loan interest rates are a little higher when compared to any other loan interest rates. Here is when loanyantra helps you getting a personal loan at the best rate. Also avail wonderful offers like cashback and referral offers by getting a loan through loanyantra.com.

 

 

Personal Loan Interest Rates

All About Personal Loan Interest Rates

Loans are the best way to afford a good and decent lifestyle. Thanks to the various options rendered by the financial system, we now have many loans ; we have loans for house, house renovation, car purchase, education etc.  

Amongst all these, we have personal loan which can be used to meet the current and emergent financial needs. It is a type of unsecured loan . This loan is available at a higher interest rate and this is primarily because you don’t need any security to avail this loan .

The best part about personal loan is that you have the flexibility to use this loan as per your convenience . To be precise, personal loan is an instant source of cash which you can use as per your requirement.

Key Features of Personal Loan-

  • Hassle free loan approval
  • No need for guarantee
  • Flexibility to use the loan money
  • Unsecured loan
  • Source of instant cash
  • Higher interest rate

Why Choose a Personal Loan?

Well, a personal loan is always a good option if you are looking for instant cash. Personal loan is a last resort for any financial emergencies or to fullfill your lifelong desires or for a wishful life.

Though it is so accessible, it’s advisable to check the personal loan  interest rate. Since personal loans are unsecured and most of the banks, don’t need a guarantor for the same, the banks and the financial lenders  have comparatively a higher Personal loan interest rate.

 

How can you use personal loan? Here is a list of things you can do with the personal loan :

  1. House renovation
  2. Wedding
  3. Buying gadgets
  4. Going on holiday / vacation
  5. Emergency need like clearing the dues, investing in business and many others

The primary reason why some people tend to choose personal loan over others is that it requires lesser documentation and are highly flexible. Most of the banks and NBFCs provide the personal loan. It is easy to apply and avail personal loan, but, you must fulfill specific eligibility criteria.

General Eligibility Check for Personal Loan Applicant – 

Minimum Age 21 years
Maximum Age 60 years
Employment Salaried professionals/business owners/Professionals and  others
Employment Status Employed or in-business for at least two years. And at least one year with current employer/business
Minimum Income Rs.4000-20,000 per month
Maximum Loan Amount Up to 50 lacs, but it also varies with the income, repayment capacityand existing EMI
CIBIL Score 350-900

Here is the list of the banks Loanyantra is tied up with for personal loans.

Personal loan interest rates –
Bank Name Personal loan Interest Rate Minimum Tenure- Maximum Tenure Personal Loan Amount
Citi Bank 10.99% – 15.99% 1-5 years Max-30Lakhs.
Axis Bank 15.50% to 24% p.a. 1-5 years Min- Rs 50,000

Max-Rs 15 lakhs.

STANDARD CHARTERED BANK 10.99% – 14.49% 1-5 years Max- 30lakhs.
HDFC Bank 10.99% – 20.75% 1-5 years Max- 25Lakhs
FULLERTON 14% – 33% 1-4 years Max- 15lakhs
HSBC 11.29% p.a. to 17.5% up to 5 years Max- 30 lakhs
ICICI 10.99% to 22.00% per annum 1-5 years Max- 20lakhs
IDBI 12.75% to 13.75% up to 5 years Min- Rs. 50,000

Max-10lakhs

SBI 12.90% – 14.90% 5 Years Min- 25,000

Max- 15 lakhs

Why Choose loanyantra over many other for lower personal loan interest rates

About Loanyantra- We are one of the leading service providers when it comes for those searching for any financial service ‘online’.  We assist you in finding the right bank which can offer you the best rates.

Loanyantra for Lower personal loan interest rates – Loanyantra marks a different place in the market as it outstands it responsibility w.r.t the customer providing personal loans at a comparatively lesser interest rate from your favourite bank. 

When you look for a faster process and an immediate disbursal of personal loan amount, we are on top of the ladder among many whom you can rely on.

Continue to celebrate life as we take care of your personal loan process and that too for a lower interest rate and also cash back if any offers available.  Connect with us to know more about a personal loan. All you have to do is just dial a missed call to 040-71011991.

Personal loan from SBI

Personal loan from SBI is categorized into different sectors. You also have the opportunity of taking two personal loans at a time if you are an SBI customer.

Advantages of taking a personal loan from SBI- 
  • Low interest rate and the  interest rate is charged on a daily reducing balance.
  • Low processing charges
  • No hidden costs /administrative charges.
  • No security required and minimal documentation.
Documents Required for a Personal loan from SBI – 
  • Passport size photograph
  • Latest salary slip and form 16.
Personal Loans from SBI – Categories – 
  1. SBI Saral Personal loan
  2. Xpress Credit Personal loan
  3. SBI loan for pensioners

Let us discuss in detail about all the categories of personal loan from SBI.

SBI Saral Personal loan : 

Eligibility for  SBI Saral Personal loan – 

A Salaried individual of good quality corporate, self employed engineer, doctor, architect, chartered accountant, MBA with minimum 2 year of experience.

Loan Limit for Saral Personal Loan from SBI –

Your personal loan limit would be determined by your income and repayment capacity.

Minimum :
Rs.24,000/- in metro and urban centres
Rs.10,000/- in rural/semi-urban centres
Maximum :
12 times Net Monthly Income for salaried individuals and pensioners subject to a ceiling of Rs.10 lakhs.

Margin for SBI Saral Personal Loan – No margin

Repayment for SBI Saral Personal Loan – 48 EMIs. You can also increase your EMI amount with no penalty or prepayment charges.

Prepayment Charges for SBI Saral Personal loan – 

  • Any prepayment of EMIs in full or in part and closure of account before the end of term will attract the prepayment charges of 3% on prepaid amount
  • No prepayment/ foreclosure charges will be applicable if the account is closed from the proceeds of a new loan account opened under the same scheme

Processing Fees for SBI Saral Personal loan –  2% – 3% of the loan amount + applicable Service Tax

Xpress Credit Personal Loan from SBI : 

Need funds for any unseen expenses? Or planning  a family vacation? Don’t miss out because of financial crisis. Personal loan from SBI is available with different features. Xpress Credit personal loan from SBI is available to the below mentioned employees maintaining salary account with SBI at zero margin.

    • Central and state Government
    • Quasi-Government
    • Central PSUs
    • Profit making State PSUs
    • Educational Institutions of National Repute
    • Selected Corporates who have business relationship with the Bank
    • Corporates who do not have business relationship with the Bank as well as do not have ECR, subject to certain terms and conditions.

Income  Requirement for Xpress Credit Personal loan from SBI – 

    • Minimum Net Monthly Income (NMI) : Rs.5000/-
    • EMI/NMI Ratio should not exceed 50%

    Loan Amount for Xpress Credit Personal loan from SBI –

    (i) Term Loan:

    • Min: Rs.25,000/-
    • Maximum: 24 times NMI subject to maximum of Rs 15.00 lacs.

    (ii) Overdraft:

    • Minimum: Rs.5.00 lacs,
    • Maximum: 24 times NMI subject to maximum of Rs 15.00 lacs.

    The OD will be subject to monthly reduction in DP so that DP becomes NIL in 60 months

    Note: Maximum loan amount for School Teachers is capped at 12 months Gross Salary both under Term Loan and Overdraft facility

    Repayment Period for Xpress Credit Personal Loan from SBI

Maximum 60 months or residual service period whichever is less.

  1. Provision for 2nd Loan for XPRESS CREDIT PERSONAL LOAN FROM SBI –Second Loan can be taken after 1 year of disbursement of the first loan. Only if the 1st loan has been satisfactorily conducted and is regular at the time of sanction of 2nd Loan.
  2. There cannot be more than 2 Xpress Credit Loans standing in the name of a borrower. However this is subject to the overall EMI/NMI ratio of 50%
  3. Margin : Nil
  4. Security : Nil
  5. Third Party Guarantee : Nil
  6. Prepayment terms : No prepayment/ foreclosure charges will be applicable if the account is closed from the proceeds of a new loan account opened under the same scheme.

Charges/Fees of Xpress Credit Personal Loan from SBI

  1. Processing Fees – 1% of the Loan Amount + applicable Service Tax
  2. Penal Interest – Penal Interest @2% p.a. would be charged over and above the applicable interest rate on the overdue amount for the period of default. If part installment or part EMI remains overdue then penal interest should not be levied.
  3. Prepayment Charges – Any prepayment of EMIs in full or in part and closure of account before the end of term will attract the prepayment charges of 3% on prepaid amount.

Interest Rates for Xpress Credit Personal loan from SBI – 

Xpress Credit to employees of Rated Corporates (W.E.F. 01.11.2017) with No Reset:

 

Facility Type Check Off Category Rating 2 year MCLR Spread over 2 year MCLR Effective Interest Rate
Term Loan
Check Off
A- and above
8.05%
3.80%
11.85%
Term Loan
Check Off
BBB+ and below
8.05%
4.30%
12.35%
Term Loan
No Check off
A- and above
8.05%
5.90%
13.95%
Term Loan
No Check off
BBB+ and below
8.05%
6.40%
14.45%
Overdraft
Check Off
A- and above
8.05%
4.05%
12.10%
Overdraft
Check Off
BBB+ and below
8.05%
4.55%
12.60%
Overdraft
No Check off
A- and above
8.05%
6.15%
14.20%
Overdraft
No Check off
BBB+ and below
8.05%
6.65%
14.70%

Xpress Credit to employees of Unrated Corporates (W.E.F. 01.11.2017) with No Reset :

 

Facility Type Check Off Category Credit Bureau Score 2 year MCLR Spread over 2 year MCLR Effective Interest Rate
Term Loan
Check Off
=800
8.05%
4.55%
12.60%
Term Loan
Check Off
700 – 799
8.05%
5.05%
13.10%
Term Loan
No Check off
= 800
8.05%
5.40%
13.45%
Term Loan
No Check off
700 – 799
8.05%
6.65%
14.70%
Overdraft
Check Off
= 800
8.05%
4.80%
12.85%
Overdraft
Check Off
700 – 799
8.05%
5.30%
13.35%
Overdraft
No Check off
= 800
8.05%
5.65%
13.70%
Overdraft
No Check off
700 – 799
8.05%
6.90%
14.95%

Xpress Credit – IT Employees Scheme : Rate of Interest (W.E.F. 01.11.2017) with No Reset :

 

Credit Info Bureau Score 2 year MCLR Spread over 2 year MCLR Effective Interest Rate
750 and above
8.05%
4.80%
12.85%
550 – 749
8.05%
5.80%
13.85%
Less than 550 / No Score
8.05%
6.80%
14.85%

Xpress ELITE SCHEME : Rate of Interest (W.E.F. 01.11.2017) with 1 year Reset Period
SBI Salary Package A/C Holders

 

Credit Info Bureau Score 1 year MCLR Spread over 1 year MCLR Effective Interest Rate
800 and above
7.95%
3.40%
11.35%
700 – 779
7.95%
3.90%
11.85%
600-699 / No Score
7.95%
6.90%
14.85%
Less than 600
No Loan (This will override even if the applicant has clear sanction/ refer to higher authority as per the Personal Loan Risk Scoring Model).

Other than Salary Package A/c Holders (including Applicants not maintaining Salary A/c with our Bank)

 

Credit Info Bureau Score 1 year MCLR Spread over 1 year MCLR Effective Interest Rate
800 and above
7.95%
3.65%
11.60%
700 – 779
7.95%
4.15%
12.10%
600-699 / No Score
7.95%
7.15%
15.10%
Less than 600
No Loan (This will override even if the applicant has clear sanction/ refer to higher authority as per the Personal Loan Risk Scoring Model).

Xpress Credit – Non-Permanent Employees (NPEs)

Employer Type Rate of Interest
i) Central and State Government, Quasi-Government, Central PSUs, State PSUs, Defence personnel, Educational Institutions of National Repute

Check-off Category-I * :

  • 430 bps above 2 yr MCLR i.e. 12.35%

Check-off Category-II * :

  • 640 bps above 2 yr MCLR i.e. 14.45%
ii) Co-operatives/ Institutions not covered under regular Xpress Credit loan scheme and Unrated Corporates

Check-off Category-I * :

  • 505 bps above 2 yr MCLR i.e. 13.10%

Check-off Category-II * :

  • 665 bps above 2 yr MCLR i.e. 14.70%
SBI Pension Loan / Personal Loan for pensioners from SBI :

If you are a Central or State Government or Defense pensioner drawing your pension through one of the SBI branches and are not more than 76 years of age, you can avail of a loan from your branch to meet your personal expenses. We understand you may have an urgent or unexpected need for funds or a family obligation to be fulfilled and appreciate your association with us.

Nominal processing fees (Nil Processing Fees for Defence Pensioners), no hidden costs and quick loan processing. Whenever you have some surplus funds, you can credit your loan account, thereby reducing your loan liability and interest burden.

Eligibility for Personal loan from SBI  :

(A) For Pensioners:

(i) For Central & State Government Pensioners:

The pensioner should not be more than 76 years of age In addition, pensioners whose pensions are disbursed by Government Treasuries by means of cheques drawn in favour of SBI branches, as per mandate of the pensioner, are also proposed to be included. In such cases, the original Pension Payment Order (PPO) remains in the custody of the Treasury and the pensioner gives a mandate to the Treasury for payment of pension through a particular branch of a bank.

Such pensioners will be included under the purview of the Scheme subject to the following conditions:

  • The pensioner concerned furnishes an irrevocable undertaking that he will not amend his mandate to the Treasury to pay his pension from the branch, during the currency of a loan availed by him from SBI.
  • The Treasury concerned consents in writing that it will not accept any request from the pensioner to transfer his pension payment to any other bank/ branch till an NOC is issued by the Bank.

All other terms and conditions of the Scheme will be applicable, including guarantee of the spouse (who will be eligible for family pension) or a suitable third party. The norms for family pensioners will continue.

(ii) For Defence Pensioners:

Pensioners of Armed Forces, including Army, Navy and Air Force, Paramilitary Forces (CRPF, CISF, BSF, ITBP, etc.), Coast Guards, Rashtriya Rifles and Assam Rifles who’s Pension Payment Order is with SBI.

There is no minimum age bar under this scheme.

The Maximum age at the time of availing the personal loan should be 76 years.

(B) For Family Pensioners (including Defence Family Pensioners) :

Family pensioner, i.e. spouse authorized to receive pension after the death of the pensioner, subject to condition that family pensioner should not be more than 76 years of age.

Loan  Amount for Personal loan for pensioners from SBI

(i) For Central & State Government Pensioners

Minimum : Rs. 25,000/-
Maximum : 18 months’ Pension with a ceiling of:

Age Max Loan Amount
= 72 years Rs 14.00 lac
> 72 but = 74 years Rs 12.00 lac
> 74 but = 76 years Rs 7.50 lac

(ii) For Defence Pensioners

Minimum : Rs. 25,000/-
Maximum : 
36 months’ Pension with a ceiling of RS 14.00 lac for Pensioners who are up to 56 years of Age

18 months’ Pension with a ceiling of :

Age Max Loan Amount
> 56 but = 72 years Rs 14.00 lac
> 72 but = 74 years Rs 12.00 lac
> 74 but = 76 years Rs 7.50 lac

(EMI / NMP not to exceed 50% in all the cases for all type Pensioners)

EMI = Equated Monthly Instalments

NMP = Net Monthly Pension

(iii) For Family Pensioners (including Defence Pensioners):

Minimum : Rs. 25,000/-
Maximum : 18 months’ Pension with a ceiling of: 

Age Max Loan Amount
= 72 years Rs 5.00 lac
> 72 but = 74 years Rs 4.50 lac
> 74 but = 76 years Rs 2.50 lac

(EMI / NMP not to exceed 33% in all the cases for Family Pensioners)

EMI = Equated Monthly Instalments

NMP = Net Monthly Pension

Age and Repayment Period – 

(A) For Pensioners:

(i) For Central and State Government Pensioners :

Age at the time of Loan sanction Repayment Period Age at the time of full Repayment
Up to 72 years of Age 60 months 77 years
More than 72 years and up to 74 years 48 months 78 years
More than 74 years and up to 76 years 24 months 78 years

(ii) For Defence Pensioners :

Age at the time of Loan sanction Repayment Period Age at the time of full Repayment
Up to 56 years 84 months 63 years
More than 56 years and up to 72 years 60 months 77 years
More than 72 years and up to 74 years 48 months 78 years
More than 74 years and up to 76 years 24 months 78 years

(B) For Family Pensioners (including Defence Pensioners) :

Age at the time of Loan sanction Repayment Period Age at the time of full Repayment
Up to 72 years of Age 60 months 77 years
More than 72 years and up to 74 years 48 months 78 years
More than 74 years and up to 76 years 24 months 78 years

Repayment Mode for Personal loan for Pensioners –

Standing Instruction to debit the pension account for recovery of the EMIs

Processing Fees for Personal Loan for Pensioners – Nil

 

Margin: Nil

Prepayment Charges for Personal Loan for Pensioners – 

  • Any prepayment of EMIs in full or in part and closure of account before the end of term will attract the prepayment charges of 3% on prepaid amount
  • No prepayment/ foreclosure charges will be applicable if the account is closed from the proceeds of a new loan account opened under the same scheme

Guarantee for Personal Loan for Pensioners :

(a) TPG of Spouse eligible for family Pension.

(b) In the absence of spouse, TPG of any other family member or a third party worth the loan amount

Insurance : Nil

Interest Rates for Personal Loans from SBI (SBI Saral Personal Loan and SBI personal loan for Pensioners) – 

Other Unsecured Personal Loans Revised (w.e.f. 01.11.2017)
Scheme 2 year MCLR Spread over 2 year MCLR Effective Interest Rate Reset Period
SBI Pension Loan
8.05%
4.35%
12.40%
No Reset
Jai Jawan Pension Loan
8.05%
4.35%
12.40%
No Reset
Pension Loan to coal mines Provident fund for pensioners 
8.05%
4.35%
12.40%
No Reset
Clean Overdraft
8.05%
8.45%
16.50%
No Reset
OD for e-Commerce purchases
8.05%
5.50%
13.55%
No Reset

Security for SBI personal loan– Nil

How Loanyantra Helps with your personal loan – 

Loanyantra, first-ever online loan management company, manages all your loans under one account. Once you decide you want a personal loan, you can give us a missed call on 040-71011991.  Our relationship manager calls you back within no time and calculates your eligibility and also will let you know the best options available according to your priority and preference.

Just relax as we take care of collecting the documents from your home and get all the things done at your doorstep.

Not just that, we also track your loan and let you know how and when you can complete it faster.

All you need to do is just a missed call to 040-71011991.

Reasons to Get a Personal Loan

Personal loan is always an option to look for when you need huge amount for unseen or unknown reasons. Though it is quite expensive, it is accessible. People look up for personal loan for different reasons. Some reasons can be really for true and good while others reasons for personal loan can be for a mere waste such as taking personal loan for gambling is really not a wise decision.

However, loanyantra helps you to find out the real reasons for when to get a personal loan.

The most popular reasons to get a personal loan are :

  1. Paying off debt / To consolidate Debt : You may be stuck up with some long-time pending loans which may be eating too much of your income. Personal loans are handy and affordable as you can avail the personal loan to pay off those debts. Some of such debts may include, credit card bills, car loans, home related loans like home improvement loans,etc.

At times, you might have different loans under different names paying different interest rates. To avoid confusion or if you find clearing all the loans is worth, then opting for a personal loan is best.

Home improvement loan is not given for 35 year old houses or if the applicant’s age is above 60 years. To get a personal loan, the banks will not ask to mention a reason. So, if you need changes for your old house, you can get a personal loan.

Paying credit card bills on-time will not affect your credit score. So, it is always advisable to get a personal loan within your limit and clear off all the debts and bills. This will help you in further loan applications.

Reasons to get a personal loan
Reasons to get a personal loan – Loanyantra’s support to you

2. Medical Emergencies : Nothing is more important or more expensive than health. Your insurance might take time to cover your ill health or your dear one’s expenses or medical bills. Or you must not have opted for insurance ever. So, you can avail personal loan to cover all your medical expenses either the unpredictable ones or expenses to fulfill daily medical expenditure.

3. Perform a Wedding : Now-a-days it is very common to plan well in advance to perform a wedding. But marriage is something you never knew what and where it happens or rather when it happens. It truly is ‘Planning the unplanned’.  The so called investments might not reach the maturity period and you might not be able to be left with cash in hand.

So, irrespective of the plans, you can anytime go for a personal loan to fulfill your heart content style of wedding.

But remember opt for a loan amount to an extent you can repay it.

4. Luxury Needs : Today’s world is in comfort-friendly zone. So, if you are in need of that high-end phone or a laptop, or if you crave for that newly launched car or a smart T.V., you can definitely get a personal loan. Usual lifestyle now in India is having a fun-filled and lovely family time. So, the financial crisis might interrupt your vacation plans.  Personal loans always help you to fulfill all your dream desires.

Personal loans are therefore also known as multi-purpose loans as they may be used for a variety of reasons. The lender does not question the intent of the borrower.

Moreover, loanyantra is always with you to take care of your financial health. We assure you with a lower interest rate and that too with the best bank. Also avail the discount for one full year which will again reduce your interest rate.