Xpress credit personal loans by SBI – Loan amount, Term, Interest

Xpress credit personal loans by SBI: With the growing demand for personal loans, different banks have come up with various personal loan schemes to lure the customers. One such is State Bank of India’s Xpress credit personal loans. In this post we enumerate the complete features of SBI’s most popular personal loan.

Xpress credit personal loans by SBI

Target customer group:

Under Xpress credit scheme, loans are provided by SBI to employees of below mentioned entities having salary account with any branch of SBI. Loans are provided to this group of customers at zero margin, and very competitive interest rates:

  • Central and state Government
  • Quasi-Government (where a part of government ownership exists)
  • Central government’s public sector under takings (PSUs)
  • Profit making State PSUs
  • Educational Institutions having nationwide reputation
  • Selected Corporates who have business relationship with SBI

Subject to certain terms and conditions, loans are granted to employees working in Corporates who do not have business relationship with the Bank.

Income level of the applicants:

Net monthly income of the applicant should be at least Rs 5000. And the EMI/Net monthly income ration should not exceed 50%. This means at any point of time the EMI should not exceed 50% of the net monthly income of the borrower.

Loan amount in Xpress credit personal loans by SBI:

1. Term loan:

Minimum loan amount is Rs. 25,000 while the maximum could be 24 times of net monthly income subject to a maximum of Rs. 15 lakhs. However, for school teachers the Maximum loan amount is capped at 12 months Gross Salary.

2. Overdraft:

Minimum amount is Rs. 5 lakhs while the maximum is as same as a term loan.

3. Repayment tenure:

Loan can be repaid within a period of maximum 5 years.

4. Margin & security:

Nil. Being a personal loan, xpress credit personal loan do not require any collateral.

5. Interest and Charges:

Interest ratesRate of interest varies according to rating of the corporates the borrower works for. Please refer the below link for information related to interest rates: Click Here
Mean ROI for the quarter Jan March 2020  – 12.63%

In most of the cases, check off facility is available. Check off means the employer himself deduct monthly installment from the employee’s salary and remit the same amount directly to the Bank.

Processing fees1% of the Loan Amount + applicable GST
Pre-payment chargesAny prepayment of EMIs in full or in part and foreclosure of the loan before the end of already agreed repayment term will attract the prepayment charges of 3% on prepaid amount
Penal interestOn the overdue amount, Penal Interest @2% p.a. would be charged over and above the applicable interest rate for the period of default.

Second loan:

The second loan can be taken in line with the below conditions:

  • A borrower can avail a second loan after 1 year of availing the 1st loan
  • And the First loan should have been satisfactorily conducted and is regular at the time of sanction of 2nd Loan.
  • The second loan will be sanctioned subject to the overall EMI/NMI ratio of 50%.