Check out the eligibility criteria for availing SBI personal loan in detail!


A personal loan being an unsecured loan, requires zero security or collateral and comes with end-use restriction on the funds, which means you can use the proceeds for any purpose. These purposes may include personal, or business linked reasons like trips abroad, the ward’s higher education or marriage, home renovation, arrangement of funding for startup etc. 

State bank of India, commonly called SBI, is one of the important banking institutions that caters to financial solutions as per the need of the customer. Before you opt for the SBI personal loan online or offline route, ensure to check your SBI Personal Loan eligibility criteria and repayment capacity. 

Important eligibility criteria for State Bank of India personal loan are:

Attribute Self-employed professionals Salaried
Occupation Professionals like a doctor, engineer, CA, lawyer etc. Salaried individuals working in private, government sectors etc.
Age limit 21 – 65 years 21 – 58 years
Employment status In business for nearly 2 years and at least one year with current business. Employed for nearly 2 years and at least one year with the current employer.
Minimum income limit Rs 5 lakh gross annual receipts Rs 24,000
Maximum loan amount Rs 15 lakh Rs 15 lakh
Repayment tenure Minimum six months and maximum tenure of 60 months Minimum 6 months and maximum tenure of 60 months
Credit score 750 or above 750 or above


Aspects impacting SBI personal loan application

FOIR: Fixed obligation to income ratio or also known as FOIR is a crucial attribute determining the SBI personal loan eligibility. Minimum FOIR must be maintained to become eligible for the personal loan. Your FOIR should not go over 50 percent of your monthly income. 

Co-applicant: If you include a co-applicant, it enhances your repayment capacity, which enhances your SBI personal loan eligibility. 

Stable profession or job: Stability in the job field is crucial for a personal loan. 

Company profile: The more reputed the company, the better it is to avail. 

Negative industry kind: State Bank of India holds a list of professions as well as industry types, which are not provided with a loan. 

Residence: If you remain in a rental home, it may lower your repayment capacity. However, if you reside or live in your own home, it may enhance your repayment capacity. 

Salary mode: State Bank of India sanctions the loan if the salary gets credited to your account and not through cheque or if it is a salary in hand. 

Location: The location you reside in determines your minimum loan eligibility for a loan. It usually is high for the urban areas and low for the suburban or rural locations. 

Mandatory testimonies for the SBI personal loan

  • Passport size photos
  • Duly filled up loan application
  • Identity proofs – Copies of PAN card, Aadhaar card and Driving license
  • Bank statement for the past 6 months
  •       IT return – for the salaried – form 16 or IT returns for past 2 financial years. 

For the self-employed – IT returns for three years.

Rate of interest 

Name Interest rate  Processing charges Loan amount Repayment tenure
State Bank of India 9.60 percent onwards Up to 1.5 percent of the loan amount Up to 20 lakhs Up to 5 years


How to avail SBI personal loan? 

  •       Customers can approach the nearby State Bank of India branch for loan applications. 
  •       Also, they can download the personal loan application from the official SBI’s site and fill it up and submit the same to the bank professional. 
  • Note that for existing customers, once the loan approval is granted, loan disbursal will be done swiftly. 
  •       For new customers, the approval procedure will happen after the completion of the verification procedure. Loan disbursement will happen, which might take some time. 

SBI personal loan repayment

You must repay your loan via the EMI mode. You can repay your loan in the listed ways: 

  • Post-dated cheques: This must be submitted in a timely manner. Submission of the repayment can also be from a non-State bank of India branch.  
  •       Standing instruction: This facilitates periodically scheduled repayments for the fund transfer. Here, EMI is deducted towards the month-end automatically from your account as specified. 
  • Electronic clearing services or ECS: This is applicable for the non-State Bank of India account holder who would deduct the EMI automatically towards the end of the month from your account. 

Stated here are two important factors that are considered by the lenders when evaluating your eligibility for a personal loan: 

Credit score

It is one of the crucial filters that lenders factor in to evaluate your personal loan application. Those with credit scores of about 750 or more are thought to be credible and have enhanced chances of getting approval for personal loans. Few lenders also offer personal loans at a preferential interest rate to you if you have a higher credit score. As those in India with a credit score of less than 750 are usually the ones with no credit discipline, lenders may reject the personal loan application or levy a higher rate of interest to compensate for the higher involvement of credit risk. 

As a requirement for a personal loan is generally uncertain and can hit anytime, regular reviewing of scores right before application submission for a loan may not be useful. Instead, you must develop the habit of reviewing your credit report timely. Doing so will endow you with the required time to take up corrective measures to improve your score. Just by adopting credit healthy practices like repaying the EMIs and credit card dues on time, keeping a lower CUR (Credit Utilization Ratio) of below 30 percent, avoiding repetitive loan or credit card applications etc., you can ameliorate your credit score. 

Timely review can even help you to timely identify the data or any clerical issues in your report, which you can report to your bureaus or lenders for correction. Having a corrected report can enhance your score automatically, along with your eligibility for a personal loan. 

EMI repayment capacity

Like other loans, lenders of personal loans to consider your repayment capacity when evaluating your application. Generally, lenders want your monthly repayment liabilities, which includes your EMIs for the existing as well as the new loans, to be within 60 percent of your monthly income. If you exceed this limit, you may have lower chances of personal loan approval. As higher tenures lead to lower EMIs, if you exceed this limit of 60 percent, you must select a longer tenure to enhance your repayment by reducing your monthly EMI.


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