State Bank of India (SBI), the country's largest lender, offers a variety of loans to meet financial needs of its customer under its personal finance portfolio. The different loan products of SBI are home loan, car loan, personal loan and education loan. The interest rates applicable on different loans vary, depending upon the type of loan, its term and other factors. The bank offers the following schemes with attractive rates of interest, said State Bank of India on its official website, sbi.co.in.
Here are different types of loans offered by SBI:
1. Personal loan: SBI offers a range of personal loan schemes for different needs. A borrower can apply for SBI's personal loan without requiring any kind of security or collateral. An individual can get a term loan of up to 24 times of his/her net monthly income, which is subject to a maximum of Rs 15 lakh, said SBI. However, one needs to have a minimum gross monthly income of Rs 50,000. SBI charges an effective interest rate ranging between 12.15 per cent and 13.80 per cent for personal loans.
2. Home loan: The housing loan is a product, where customers take loan to buy or renovate house against the same property as collateral. On housing loans ranging between Rs. 30 lakh and Rs 75 lakh, SBI charges an effective interest rate of 8.95-9.05 per cent for salaried borrowers, according to its website - sbi.co.in. In case of female borrowers, SBI offers lower interest rates between 8.90 and 9 per cent.
3. Education loan: SBI offers different types of loans for education such as student loan, scholar loan and loan to study abroad. Under student loan, loan is given for pursuing higher education in India or abroad which amounts up to Rs 10 lakh for studies in India and Rs 20 lakh for studies abroad. SBI charges an interest rate of 10.55 per cent on loan of up to Rs 7.5 lakh and 10.80 per cent above Rs 7.5 lakh.
4. New car loan: SBI offers loans for new car where interest is calculated on daily reducing balance, said SBI on its website. This type of loan can be used to buy all type of passenger cars, multi utility vehicles and SUVs (Sports Utility Vehicle). No pre-payment penalty and advance EMI (equated monthly instalments) is required in order to avail SBI's new car loan. SBI charges an interest rate of 9.30 per cent to 9.80 per cent for new car loans.