Personal loans from State Bank of India are great financial tools and can be obtained easily if the eligibility criteria set by the SBI bank is met. This criteria differs for different types of personal loans offered by SBI.
| Personal Loan Type | Age Limit | Job Type | Maximum Loan Amount | Minimum Loan Amount |
| Xpress Credit Personal Loan | 21-58 years of age | Salaried individual in reputed corporate, self-employed engineer, doctor, architect, chartered accountant, MBA, govt. and PSU employee |
Rs.15 lacs | Rs.24,000 |
| Pensioner Loan | 60-76 years of age | Pensioners | Max. 10 months of pension; up to 14 lacs | Rs.25,000 |
| Festival Loans | 21-58 years of age | Salaried individual in reputed corporate, self-employed engineer, doctor, architect, chartered accountant, MBA, govt. and PSU employee |
Rs.50,000 | Rs.5000 |
| SBI Saral | 21-58 years of age | Salaried individual in reputed corporate, self-employed engineer, doctor, architect, chartered accountant, MBA |
Rs.10 lacs | Rs.24,000 in metro cities Rs.10,000 everywhere else |
Factors affecting State Bank of India Personal Loan Eligibility
SBI processes personal loan applications quickly subject to the eligibility of the loan applicant. Some of the main factors on which loan eligibility depends are mentioned below.
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- Job of the applicant
State Bank of India places huge importance on the job type of personal loan applicants. Any applicant who earns a regular income and is either from a reputed organization or from a government sector enterprises is given preference over customers who do not work for known organizations. Known organizations offer stable jobs and as such the repayment capacity of customers is better.
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- Age of the applicant
Banks want customers to be in the earning age group so that chances of repayment on time are increased and those of defaulting are decreased. Hence, age of the applicant for SBI personal loans is generally above 21 years and below 58 years; except for pensioner loan which is aimed at providing finance to senior citizens.
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- Credit history
Credit history is a record of you as a borrower. Obtaining credit depends a lot on your past credit history. This lets banks know how regular you are in paying your loan installments and how have you have handled your previous credit lines. Your credit history gives banks ample data to evaluate you as a worth customer.
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- Relationship with the bank
Banks already know all KYC parameters for existing customers and as such are more open to providing credit to their existing customers rather than outsiders. This is also because they know about your financial assets and your general financial health which makes decision-making easier for them while sanctioning loans.
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- Monthly income of the loan applicant
Monthly income of a loan applicant determines his/her repayment power. Higher the monthly income easier it is for borrowers to pay loan installments. Generally, banks lend only when the total amount of your loan liabilities for a month is equal to or less than 40% of the monthly income.
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- Existing debt liabilities
Lower the number of credit channels like loans etc. on your name, higher is your SBI personal loan eligibility. This is because, too many debt liabilities can hamper regular payment of installments and as such customer might default. Hence, banks look at how many existing loans you have on your name before sanctioning personal finance.
How to increase State Bank of India Personal Loan Eligibility?
Personal loan eligibility can be increased by taking a few steady steps that contribute to strengthening a customer’s credit history.
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- Maintain a good credit history:
Timely bill payments, installment payments and proper closure of loans affects your credit history. All these things when done rightly and on time help you in maintaining a good credit record which is essential for obtaining any form of credit.
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- Have a mix of both secured and unsecured loans:
A right mix of secured and unsecured loans paves the way for good credit history. Having just unsecured loans does not reflect too well on customer’s financial records and as such you should try availing both forms of credit to add credibility to your financial strength.
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- Don’t apply for finance in too many banks:
While you may be frantically looking for personal finance in case of any urgent financial need, applying at too many banks is not the best course of action. Too many loan applications with several credit providers may sound too desperate to banks and it also does reflect badly on your credit score.
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- Do not change your job frequently:
Banks prefer customers who have a stable job with a stable organization. This ensures banks that the borrower will be able to repay his/her loan dues on time. Banks are always on the look-out to reduce the number of their non-performing loans in order to reduce losses.
