State Bank of India (SBI) offers a variety of loans under personal finance solutions to satisfy varying needs of the banking public. The bank offers these schemes with attractive rates of interest, said SBI on its website- bank.sbi. The different loan products of SBI are- housing loan, car loan, personal loans, loans against property and education loans. The interest rates applicable on different loans vary, depending upon the class of loan and term, among other factors, mentioned country's largest lender on its portal.
Here are different types of loans provided by SBI under its personal finance portfolio:
1. Housing loan: The housing loan is a product, where one gets loan to buy house property, renovate the property and mortgage loan against the owned property, said SBI. On housing loans up to Rs 30 lakh, for example SBI charges an effective interest rate of 8.35-8.50 per cent, according to its website - sbi.co.in. SBI's home loan portfolio includes regular home loan, balance transfer home loan and NRI home loan.
2. Education loan: SBI offers different types of loans for education, including student loan, scholar loan and loan to study abroad. Under scholar loan, loans are provided for courses at select leading institutions in India like IITs, IIMs, NITs, AIIMS and other premier institutions. The loan amounts up to Rs. 30 lakh. Education loan exclusively for full-time regular courses at foreign colleges/universities amounts from Rs 20 lakh up to Rs 1.5 crore, said SBI. 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.
3. New car loan: SBI offers loans for financing new car where interest is calculated on daily reducing balance, informed country's largest public banking sector entity 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). Overdraft facility is also available under this. No pre-payment penalty and advance EMI ( Equated Monthly Instalments) is required in order to avail SBI's new car loan scheme.
4. Loans against property: SBI offers loans against property for cash requirements against the individual's asset (or property). Loan against property can also be called an all-purpose loan. In case of a cash crunch, customer can leverage a property and avail this loan. Repayment to the bank is to be done in form of EMIs ( Equated Monthly Instalments) at an interest rate pre-decided by the bank. The minimum loan amount that can be taken is Rs 10 lakh and maximum limit is Rs 7.5 crore, subject to location of property, said SBI.
5. Personal loans: SBI offers a range of personal loan schemes for different needs. A borrower can apply for a State Bank of India personal loan without requiring any kind of security or collateral. An individual can get a loan of up to 12 times of his net monthly income when applying either online or at a bank branch, said SBI.