SBI Personal Loan: How To Apply, Prepayment Charges, Other Features

The State Bank of India (SBI), like other financial institutions, offers personal loans for the needs that range from travel expenses (domestic or foreign), medical treatment of self or family member, financial liability such as marriage of son or daughter, meeting margins for purchase of assets etc. To be able to seek personal loan, you should be a salaried individual engaged in a good corporate, self employed, engineer, doctor, architect, chartered accountant, MBA with a minimum of two years of experience.

The minimum salary for seeking personal loan in urban and metro areas is Rs 24,000 and Rs 10,000 in rural or semi urban area. One can seek a personal loan of 12 monthly income for salaried individuals and pensioners subject to the ceiling of Rs 10 lakh. The documents required for seeking personal loan for the existing bank customers are passport size photograph, and latest salary slips and form 16.

The personal loan is repayable in 48 EMIs. One can pay more than the EMI if you wish to, without having to pay any prepayment penalty. The processing charges of SBI personal loan are anywhere between two to three percent of the loan amount, with service tax applicable.

One can even make the prepayment of EMIs in full or in part and closure of account before the end of term. But one is supposed to pay the prepayment charges of 3% on the prepaid amount. But no prepayment charges will be applicable if the account is closed from the proceeds of a new loan of a new scheme.