In India there is absolutely no shortage of festivals. As Indians we love to celebrate each festival with a lot of grandeur as it is a time when families get together and make memories. It’s important that we have the money to fund our grand celebrations. So if you have not managed to accumulate enough money in time for the festivities, SBI offers a great solution in the form of Festival Loan which will help you meet all of your festival-related expense.
Features of SBI Festival Loan
- No hidden costs or administrative charges.
- Loan Amount: The amount that you can borrow as SBI Festival Loan depends on your income and repayment capacity. The minimum amount that can be borrowed with this scheme is Rs.5000/- and the maximum is four times your Net Monthly Income. This maximum amount that can be borrowed is subject to a ceiling of Rs.50,000/-.
- SBI offers Festival Loan with competitive interest rates.
- Minimal documentation
- No security required if check off is available.
- Low processing charges
- No prepayment penalties.
Eligibility criteria for SBI Festival Loan
- You must be earning a net monthly income of Rs.3000/- and above. Your spouse’s income can also be considered while calculating the loan amount. However, he/she must guarantee the loan or avail the loan jointly.
To be eligible for a SBI Festival Loan, you must fall in any of the following categories:
- An employee of PSUs, the government, profit making private/ public limited institutions/ companies etc. with a minimum of two years’ service
- An individual who receives a regular source of income from a verifiable channel such as interest from Government/ TDRs/ NSCs or Pension.
- Self-employed person with a minimum three years’ experience
Documents Required for State Bank of India (SBI) Festival Loan
- In case of self-employed individuals and professionals, you will need to provide proof of official address. This can be shop and establishment certificate/ Telephone Bill/ Lease deed. You will also need to provide IT returns for the last two financial years.
- In the case of salaried persons, you will have to provide latest Salary Slip and Form 16.
- Passport Size Photograph
Charges and Fees for SBI Festival Loan
- Processing Fee: 1% of loan amount + applicable Service Tax
- Prepayment Charges: You will be charged with a prepayment charge of 3% on prepaid amount if you decide to prepay EMIs in full or in part. The same applies for closure of account before the end of term. In case you decide to close the account from the proceeds of a new
