State Bank of India (SBI) is arguably the largest lender in India with more than 25,000 branches across the country. It offers all sorts of banking products such as personal loans to help you with quick funds for all your personal needs like marriage, education, medical emergency, etc.
The bank brands personal loan offers under Xpress Credit and sets interest rates of different borrowers differently based on the profession they are into. All of you reading this piece should know SBI Xpress Credit Loan Interest Rate applicable to you before deciding whether to avail the credit service or not.
How Much Does SBI Charge to Defence Personnel on Xpress Credit Loan?
SBI offers Xpress Credit Loan to defence personnel, paramilitary or Indian Coast Guard salary package applicants at interest rates of 11.95%-12.45% per annum. The defence personnel with no salary accounts would be offered a slightly higher rate of 11.95%-13.45% p.a. The interest rate for other corporate salary account ranges from 12.95%-13.95% per annum. Xpress Power Scheme sees interest rates of 12.05%-13.70%. IT employees are expected to be handed the loan with 13.35%-15.35%. Xpress Elite Scheme is for those holding salary accounts with SBI. Other than salary package applicants would see the loan getting charged at 11.20%-12.70% p.a. SBI offers a loan to even non-permanent employees working in government units and reputed educational institutions. Pensioners receive the loan at 11.90%-12.40% per annum.
Can You Negotiate for a Lower SBI Xpress Credit Loan Interest Rate?
Yes, you can. The interest rate demonstrated above is not a flat one. In fact, it is based on the 2-year MCLR that is subject to review every month. The spread is added over the MCLR to arrive at the lending rate. You can’t negotiate as far as the MCLR is concerned. It’s because the MCLR is reflective of the bank’s cost of funds.
However, the spread can be negotiated as that is basically charged on the basis of credit risk the borrower poses while taking a loan. If you have a good credit score, earn high and possess an existing relationship with SBI, it won’t be a surprise if the public lender agrees to your request of lowering the rate. The rate, if get lowered, would benefit the borrower in the form of reduced interest outgo.
How to Figure out the Interest Cost on SBI Xpress Credit Loan?
The interest cost can be evaluated by using the SBI Personal Loan EMI Calculator. What does the calculator do is help compute the Equated Monthly Installment (EMI) on the basis of tenure, loan amount and interest rate. The EMI is a sum total of principal and interest payable towards a loan. So, the calculator would also put forward the amount of interest payable from your pocket.
SBI Xpress Credit Loan Documents Required
- You need to submit the following documents to procure Xpress Credit Loan from SBI
- Identity Proof – PAN Card/Voter ID/Driving License/Passport/Aadhaar Card
- Residence Proof – Voter ID/Driving License/Passport/Aadhaar Card/Electricity Bill/Telephone Bill
- Income Proof – Latest salary slips (Salaried), last 2-3 years Income Tax Return (ITR) (Self-employed)
- Bank statement for the last 3-6 months
- Passport size photographs
SBI Xpress Credit Loan Application Form PDF Download
You can download the form from the official website of SBI. Fill the form correctly by mentioning your personal and professional details correctly. You need to submit the form along with relevant documents to support the application. The bank will check the details carefully and approve the application only upon successful verification.