sbi personal loan

Let’s Find Out SBI Personal Loan Interest Rates Here


Not often it is possible to do anything everything you want on your own. Wishes do not stay within the four walls of a room like the many traditional Indian housewives do. While you would love to take your love to the sandy beaches of Barcelona, your friends would be more interested in picking up the latest mobile phone in the market. The costs for all these can get higher and thus make you approach a bank for a loan of your budget. You should look for a suitable personal loan, which can be availed for any purposes like marriage, education, buying a consumer durable or others.

As far as the lender is concerned, there is no doubting of the fact that State Bank of India (SBI) emerges as the most popular bank among its peers. With over 14,000 branches, SBI is the most visible of the lot. But will it be worth for you? I mean to say, have you checked out the interest rates? The reason why this question assumes significance is because of the fact that the interest rates are the ultimate decider of your pocket’s health. More the rates, higher will be the amount of EMI payable each month and vice-versa. So, are you ready to dive into the water of SBI personal loan interest rates? If ‘Yes is your response, then let’s do it now.

SBI Personal Loan Interest Rates-

The interest rates charged by SBI vary across its various personal loan offers. The bank provides a personal loan under two schemes-Xpress Credit Personal Loan and SBI Pension Loan/Jai Jawan Pension Loan.

SBI Xpress Credit Personal Loan-

Doesn’t matter if you want money to fulfill your expedition drive or need the same for any medical emergency, Xpress credit personal loan is what can serve your purpose. Want to check out its interest rates? Well, it’s 11.90% per annum.

SBI Xpress Credit Personal Loan Eligibility-

  • Your net monthly income should be a minimum of ₹ 7,500
  • The ratio of EMI/NMI must not be more than 50

SBI Pension Loan/Jai Jawan Pension Loan –

The interest rate on this loan is upto 14.90% per annum. The eligibility for this loan is stated in the points below.

  • Pensioners from state and central government departments are eligible for this loan.
  • They should be either drawing pension from these departments or have their pension account opened with SBI
  • The maximum age of the applicant is 76 years

How Does SBI Calculate EMI on Your Personal Loan?

It is important to know the amount of EMI payable beforehand as it can help you budget better. Do you know how SBI calculates the EMI on your personal loan? It’s by using the formula that you can check out below.

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

P=Principal Loan Amount

R=Interest Rate

N=Number of Monthly Installments

Let us take an example to figure out the EMIs.

Ravi Malhotra, a Chief Architect in a construction firm, applies for a 5-year personal loan of 5 lakhs at SBI. The interest rate charged by the public lender is 11.90%. The EMI, in this case, will work out to be ₹ 11,097 while the total interest outgo and the total repayment amount are going to be ₹ 1,65,818 and ₹ 6,65,818, respectively.  

EMI, whose extended form is Equated Monthly Installment, forms a component of both interest and principal portions of a loan that are payable each month until the expiry of the tenure. In the early days of your personal loan journey, the interest portion will be more than the principal counterpart. But as you move towards the fag end of the tenure, the interest portion of the EMI gets lower than principal.

The EMI is dependent upon three factors-

  • Loan Amount
  • Interest Rate
  • Tenure

Let us understand the crux of EMI based on all three factors that you can see above.

No need to say that higher loan amount and higher interest lead the EMIs to spiral. But many may not know the exact impact that tenure can have on the EMI. When the tenure is longer, the monthly EMI amount is lower compared to a shorter period of the loan. With the lower amount of EMI, you could drift towards a longer tenure. But there is a catch here. The longer tenure results in higher interest repayments over the loan tenure compared to a shorter period of loan.

If Ravi Malhotra opts for a 4-year loan of the same amount and at the same interest rate, he may have to shell out a higher EMI of ₹ 13,142. But he can cut down the interest repayments to 1,30,834, a saving of 34,984 (1,65,818-1,30,834) over the course of 4 years.

I hope you are now aware of SBI personal loan interest rates and their impact. So, before availing the option of SBI Personal loan, do keep an eye on its interest rates.


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