SBI Personal Loan Interest Rate

A personal loan is an unsecured loan, meaning you don’t have to pledge any collateral as security in order to avail the loan. The end use of the loan could be anything from personal expenses like to fund your child’s wedding, to fund your dream vacation, for a medical emergency or any business expenses. It could be used to consolidate your credit card debt since its interest rates are generally lower than credit card interest rates.

At the same time, it is important to note that personal loans are among the most expensive loans. They come with the highest interest rates since they are 'unsecured'. The lenders charge a high interest rate to safeguard their money against default. In the case the customer defaults, there is no security or collateral from the customer that the lender can dispose off to recover the unpaid dues.

The interest rate on a personal loan could range from 13% to as high as 32%.  The rate is influenced by a variety of factors, like your repayment record, your credit history, net annual income, debt-to-income ratio, employment stability etc.

What Factors Affect the Interest Rate on SBI Personal Loans?

There are a variety of factors that affect the interest rate on a personal loan. Following are some of the important factors:

Your borrowing history and credit score: Lenders look into your borrowing history in order to evaluate your repayment ability. Since a personal loan is an unsecured loan, lenders are particularly interested in learning about your past credit behavior. Generally, the higher your credit score, the better the interest rate will be. The benefit of having a good track record of fulfilling your debt obligations is that you might be able to negotiate a lower interest rate with your lender.

Your loan amount as compared to your annual income: Your loan amount is taken into consideration while deciding on the interest rate. If your loan amount is a small percentage of your annual income, then your interest rate will tend to be lower. Likewise, if your loan amount is a high percentage of your annual income, then lenders might not be confident about your repayment capacity and might sanction the loan amount at unfavorable interest rates. 

SBI Personal Loan Interest Rate

Currently, SBI Personal loan interest rates range from 12% p.a.  to upwards of 18% p.a. or more depending on your credit history, repayment ability, etc. 

Apply for SBI Personal Loan

There are several ways in which you can apply for an SBI personal loan:

  • You can apply directly online at the SBI website
  • You can go in person to your nearest branch with the required documentation
  • You can contact the customer care department of SBI
  • You can contact a sales agent.

Looking for help or advice on personal loans? If you want to apply for a personal loan with the lowest interest rates as applicable to your credit profile, then CreditMantri can guide you through the entire process and match you with the loan offer best suited to your needs.