State Bank of India is the largest public sector bank in India. And also, the bank has the highest loan disbursements amongst personal loans, car loans, home loans & corporate loans. The bank has very customer-friendly policies that suites the needs of the customers. The interest rates being charged by the state bank of India is the lowest amongst all the public sector banks, private banks, and the NBFC’s. Thus the SBI is amongst the most recommended bank for obtaining personal loans. The bank charges an interest rate of 9.60% per annum, which is the lowest amongst all the banks. The SBI in case of default of loans only follows legal action to be taken against the borrower. Bank does not follow malpractices like hiring recovery agents for the recovery of the loans. Also, SBI is the largest bank in India is rated amongst the most trusted bank in India. The bank never misleads the customers while obtaining the loans. Banks charge interest rates that are very affordable to the lender. And the personal experience if surveyed amongst the different lenders SBI is the best name in the banking sector for the customer experience.
The bank follows proper compliance policies for the disbursement of loans. SBI straight away rejects the application of the candidates without the appropriate documents. Also, the bank does not accept the application of applicants with a low CIBIL score. The bank is very rigid in the disbursement of the loans in case of a poor CIBIL score. The bank expects a minimum score of 700 points out of 1000 points to get the loans approved. Also, the borrower should have stable and consistent income only if the bank approves the applicant’s loan. The bank extends the tenure of a maximum of 6 years which is one year higher than other banks. However, to become early debt-free, the borrower can avail of the loan for a shorter duration as well to become early debt-free. The bank also charges late payment fees for those borrowers who pay their installments beyond the due date. The bank has clear & transparent policies in case of the terms & conditions of the loans. Bank does not take any hidden charges, and the processing fees are 1% + taxes as applicable which is very reasonable.
Process for applying for the Personal Loan with SBI:
· Fill the application form being obtained from the bank
· Fill the form, do a signature wherever required and attach the passport size photograph
· Attach the Xerox copies of all the necessary documents required, which should be self-attested
· The application would then be processed within 48 hours, and the amount would be credited into the borrower’s bank account
Eligibility criteria while applying for the loans
· The borrower’s age should be minimum of 21 years, and the maximum should be 58 years on the date of maturity
· The applicant should be a citizen of India
· The maximum loan tenure would be 72 months from the date of application
· The minimum salary criteria should be Rs.15,000 for applying for the personal loan
· The maximum amount of loan which can be obtained is Rs.20 lakh
· The borrower, along with all the necessary documents, should be able to provide income proof or salary slips to prove that consistent income is going on for the borrower
We can conclude that the State Bank of India has the most customer-friendly policies in case of availing the personal loans. The borrower is also charged the lowest interest rates of 9.60% per annum, which is the lowest amongst all the lenders. The bank has clear & transparent policies, and thus the chances of the applicant getting mislead due to any reason is very less. The borrower also enjoys the maximum tenure on repayment of loans, thus reducing the monthly liability of the borrower.