*Please note quotes shown will be from Our Partners

Personal Loan

South Indian Bank offers personal loan to individuals who meet the SIB Personal Loan amount eligibility in order to meet certain unavoidable expenses.  These SIB Personal loans can be availed in multiple variants and are issued at competitive pricing.


Key Features of South Indian Bank Personal Loan:
 

  • SIB offers Personal Loan towards funding an individual’s personal or family needs such as purchase of consumer durables like white goods, electrical and electronic equipment, peripherals, funding of medical expenses, funds for inland or foreign travel, inland or foreign business travel and individuals travelling abroad for employment purpose.
  • The bank levies upfront charges amounting up to 0.50% of the sanctioned loan amount.
  • The bank levies certain Annual percentage rate on all SIB Personal loans that it issues. Annual percentage Rate (APR) represents the total cost which might have to be borne by the applicant in order to avail loan from the bank. It’s a onetime charge. The current APR of the bank is fixed at 0.50% of the sanctioned loan amount.

Types of Personal Loans

SIB Flexi Loan


This is a loan scheme offered by South Indian Bank which provides loan facility to high net worth individuals for their personal use. The features of SIB Personal Loan are:
 

  • The loan is available to resident Indians as well as Non Resident Indians in the form of term loans
  • The amount of loan issued would be determined based on the annual income required for SIB Personal Loan, the repayment capacity and the security offered. This SIB Personal loan is different from project loans or industry loans where the loan is offered based on the strength of the project or the activity chosen
  • Only high net worth individuals can apply for a SIB personal loan either singly or jointly as they fit the SIB Personal Loan eligibility
  • The SIB Personal loan can be used for any purpose provided it is not for a speculative purpose or any other activity which is restricted by the Government of India or the State Government or any other local body. The purpose for which the SIB Personal loan is being availed should be clearly mentioned in the application form for the bank to know. If a NRI is applying for the SIB Personal loan, then it would not be granted for investments made in non-banking business, agriculture, plantation, real estate business, construction of farm house or for trading in Transferable Development Rights (TDRs). An undertaking from the NRI in this regard would have to be obtained for banks to offer personal loans
  • The minimum amount of SIB Personal loan available under this scheme is Rs.2.5 lakhs
  • The maximum quantum of SIB Personal loan available would depend on the security against which the SIB Personal loan is availed. A loan against a prime urban property or non-urban residential property is maximum of  Rs.1500 lakhs, and loans higher than this amount is not available
  • The annual repayment amount of the SIB Personal loan should not exceed 75% of the total annual income from every source for a businessman. If the applicant is a salaried individual, the minimum net take home salary after paying the SIB Personal loan instalment should not fall below 50% if the gross salary is up to Rs.20, 000, 40% if the gross salary is Rs.20, 000 to Rs.30, 000 and 30% if the gross salary is above Rs.30, 000
  • The value of the property, whether a prime urban property or a non-urban residential property should be at least 200% of the SIB Personal loan amount sanctioned
  • A SIB Personal loan processing fee equivalent to 0.50% of the amount of SIB Personal loan sanctioned would have to be paid upfront irrespective of the amount of SIB Personal loan availed
  • This SIB Personal loan would be directly credited to the borrower’s Savings Account, Current Account or NRO Account
  • The SIB Personal loan repayment tenure for SIB Personal Loan can range from a minimum of 6 months to a maximum of 120 months. If the applicant wishes to prepay the SIB Personal loan amount entirely within the first 6 months, full interest for 6 months would have to be paid by the borrower as per the requirements for personal loans even when the SIB Personal loan account is closed.
  • If the value of the SIB Personal loan is limited to Rs.100 lakhs and the maturity period is also limited to 12 months, the applicant can repay SIB Personal Loan through bullet payments
  • If the applicant is a married individual, the spouse can also act as a co-applicant and submit his or her documents
  • Any type of foreclosure or prepayment charges are waived if the term loans are offered at a floating SIB Personal Loan interest rate
  • The interest rate for Personal Loans on the Flexi Loan scheme is fixed based on the bank’s Marginal Cost of Funds based Lending Rate also called MCLR in short. The applicable SIB Personal Loan interest rates would be MCLR + 3.80% per annum
     
  • In case of people excluded from the tax bracket and having given a declaration regarding the same.
     
  • For applicants under this category the bank requires submission of certain documents to the satisfaction of the branch manager.
  • However, the maximum amount of loan to be sanctioned under this category is dependent upon the annual of the individual. An applicant falling under this category can avail loans equivalent to his annual income or up to Rs.3 lakhs, whichever is lower.
     
  • In Case of persons travelling abroad for employment purpose:
     
  • For people travelling abroad for employment purpose, the bank requires submission of certain documents such as certified copy of international qualifying examination like CGFNS / IELTS, certified copy of valid Passport; certified copy of Employment offer letter / Work permit, certified copy of registration obtained by the recruitment agency etc to be obtained).
  • However, the maximum amount of loan to be sanctioned under this category is dependent upon the total expense incurred and on the monthly salary. An applicant falling under this category can avail loans amounting up to 75% of his total expenses to be incurred while travelling, or up to Rs.5 times of his monthly salary as per the work contract or up to Rs.3 lakhs, whichever is lower.
     
  • In Case of Non Resident Indians (NRI’S):
     
  • This loan can be availed by all NRI’S.
  • However, the maximum amount of loan to be sanctioned under this category is dependent upon the average annual remittance minus bulk remittances to the individual’s NRI account or to the spouse’s domestic account. An applicant falling under this category can avail loans amounting up to 50% of his annual remittances, or up to Rs.3 lakhs, whichever is lower.
     
  • In Case of Business class applicants:
  • Individuals running a business of their own or self-employed non-professionals, filing regular IT returns are eligible for a loan with the bank.
  • However, the maximum amount of loan to be sanctioned under this category is dependent upon the annual income minus capital gains of the individual. An applicant falling under this category can avail loans equivalent to his annual income as per his audited financials or up to Rs.3 lakhs, whichever is lower.

Amount of Loan: The South Indian bank offers Personal loans to various applicants. However, the eligible loan amount and the repayment tenure vary from individual to individual depending upon the applicant’s job profile.


In Case of salaried applicants:
 

  • Individuals working with reputed MNC’S, government organizations, whether central or state based and employees of IT industry and other such related organizations are eligible for a loan with the bank.
  • However, the maximum amount that can be sanctioned is dependent upon the net monthly income of the individual. An applicant falling under this category can avail loans amounting up to 25 times of their net monthly income minus the SIB Personal Loan EMI or up to Rs.3 lakhs, whichever is lower.

In case of group loans:                
 

  • Group loans are issued to all salaried individuals working with public sector companies including central, state and local bodies, employees of private limited companies, other blue chip companies and reputed institutions.
  • The South Indian bank offers Personal loans under two categories, namely, SIB Personal loans for individuals and group loans.

In Case of SIB Personal loans issued to individuals:
 

  • The loan is issued to salaried individuals including doctors having a professional medical degree, employees of private limited companies, and employees of public sector companies including central, state and local bodies. So anyone who is an employee whether it a general employee or professional employee can apply for a personal loan. Government employees include any individual working for any government organization whether it is a local organization; state based organization or a central organization as long as the remaining period of their service is equivalent to the repayment period.
  • Self-employed individuals, businessmen and professionals who are working independently rendering their services themselves are also eligible for availing a personal loan from the bank.
  • Individuals with sufficient income and a steady source of income are also eligible for availing personal loans from SIB.
  • Even Non-resident Indians (NRI’S) can avail SIB personal loans .

Rate of interest

The personal loans of the bank are issued at a fixed rate of interest. These fixed rates correspond to the Base rate which is applicable on any date. If the base rate increases, the interest rate on loans also increases and vice versa. The bank issues personal loans to all applicants at the fixed rate of interest that is 13.00%


Service fee and Charges: The bank levies certain fee and charges on all loans that it issues. The list of the service fee and charge is given below:
 

  • Loan Processing Charges: The bank levies a processing charge ranging from 0.25% to 1 % of the sanctioned loan amount.
  • No due certificate: The bank also issues a due certificate, if required by the applicant. The bank levies no charge for issuance of a no due certificate.
  • Solvency certificate: The bank also issues solvency certificates if demanded by the customer at certain charges. The charges to be levied against issuance of such certificates depend upon the amount of the sanctioned loan.
  • For loans amounting up to Rs.25000, the bank levies a solvency certificate issuance charge of Rs.100.
  • For loans lying between Rs.25000 to Rs.1 lakh, the bank levies a solvency certificate issuance charge of Rs.250
  • For loans lying between Rs.1 lakh and up toRs.5 lakhs, the bank levies a solvency certificate issuance charge of Rs.500.
  • For loans lying between Rs.5 lakhs and up toRs.10 lakhs, the bank levies a solvency certificate issuance charge of Rs.1000.
  • For loans above Rs.10 lakhs, the bank levies a solvency certificate issuance charge of Rs.100 per lakh
  • Charges for late payment/Emi Penal: An applicant must make sure to pay his EMI’S well on time. If he fails to do so, the bank levies EMI penal fee standing at the rate of extra 2% over the existing rate to be charged from the date of defaulted payment.
  • Charges for changing from fixed to floating rate type and vice versa: The bank does not allow for sweeping of interest rate methods. Once opted for a particular option, the applicant cannot switch to any other option.
  • CIBIL report: the bank may also issue a CIBIL report or any other credit information report to the borrower at their request. However, the bank will levy a charge of Rs.50 for issuance of such reports.
  • Documentation Charges: These charges are levied at the time of disbursements and renewals of the loans. These charges are to be levied over and above all other fee and charges. The charges to be levied under this category depend upon the amount of the sanctioned loan:
  • For loans amounting up to Rs.10000 and below, the bank levies a charge of Rs.100.
  • For loans lying between Rs.10000 to Rs.1 lakh, the bank levies a charge of Rs.250.
  • For loans lying between Rs.1 lakh to Rs.2.5 lakhs, the bank levies a charge of Rs.500.
  • For loans lying between Rs.2.5 lakhs to Rs.5 lakhs, the bank levies a charge of Rs.1000.
  • For loans lying between Rs.5 lakhs to Rs.50 lakhs, the bank levies a charge of Rs.2000.
  • For loans lying between Rs.50 lakhs to Rs.1 crore, the bank levies a charge of Rs.3000
  • For loans amounting above Rs.1 crore, the bank levies a charge of Rs.5000.

 

  • Property Valuation Charge: The charge to be levied against property valuation depends upon the amount of the sanctioned loan.
  • For loans amounting up to Rs.5 lakhs and below, the bank levies a charge of Rs.500.
  • For loans lying between Rs.5 lakhs to Rs.10 lakhs, the bank levies a charge of Rs.1000.
  • For loans amounting above Rs.10 lakhs, the charge levied will be equivalent to the fee taken by the expert valuer.

Amendment Charges: the bank does not levy any charge if the amendments have to be done because of the bank’s mistake or any omissions have to be done from the bank’s end. However, if the same has to be done on a request by the borrower, the bank levies certain charge for every such instance. The charge to be taken depends upon the amount of loan to be sanctioned. All expenses incurred out of the bank’s pocket in the form of telephone bills and fax charges have to be borne by the applicant.
 

  • For loans amounting up to Rs.5 lakhs and below, the bank does not levy any charge
  • For loans lying between Rs.5 lakhs to Rs.100 lakhs, the bank levies a charge ranging from a minimum of RS.1000 to a maximum of Rs.10000.
  • For loans amounting above Rs.100 lakhs, the bank levies a charge ranging from a minimum of RS.5000 to a maximum of Rs.50000.
     
  • Inspection Charges: The bank levies inspection charges against the inspection of the securities. The inspection charge depends upon the amount of the loan sanctioned.
     
  • For loans amounting up to Rs.25000 and below, the bank does not levy any charge.
  • For loans lying between Rs.25000 to Rs.1 lakh, the bank levies a charge of Rs.50.
  • For loans lying between Rs.1 lakh to Rs.2lakhs, the bank levies a charge of Rs.100.
  • For loans lying between Rs.2 lakhs to Rs.5 lakhs, the bank levies a charge of Rs.150.
  • For loans lying between Rs.5 lakhs to Rs.10 lakhs, the bank levies a charge of Rs.200.
  • For loans lying between Rs.10 lakhs to Rs.25 lakhs, the bank levies a charge of Rs.300.
  • For loans lying between Rs.25 lakhs to Rs.50 lakhs, the bank levies a charge of Rs.400.
  • For loans lying between Rs.50 lakhs to Rs.100 lakhs, the bank levies a charge of Rs.600.
  • For loans lying between Rs.100 lakhs to Rs.500 lakhs, the bank levies a charge of Rs.800.
  • For loans lying between Rs.500 lakhs to Rs.1000 lakhs, the bank levies a charge of Rs.1000.
  • For loans amounting above Rs.1000 lakhs, the bank levies a charge of Rs.2000.
  • All expenses incurred out of the bank’s pocket in the form of travelling expenses have to be borne by the applicant.

Mode of disbursement: The disbursement of the sanctioned loan amount to all applicant’s except NRI’S will done by ways of credit of SB/CD account of the borrower. In the case of NRI’S, amount will be disbursed by ways of direct credit to the applicant’s NRO account.


Requirement of Collateral:
 

  • The bank may also demand for collateral against the loans that it issues. However, the type of collateral may vary from individual to individual depending upon the purpose of the loan and nature of the applicant.
  • The bank may or may not demand for any collateral in case of loans issued to doctors and all salaried professionals who hold a SB account with the bank in which their salaries are credited. The requirement of collateral is optional in this case.
  • In case of people going abroad for employment purpose and having applied for a loan with the bank amounting up to Rs. 1lakh and below, the bank requires a third party guarantee. However, for loans above RS.1 lakh the bank may demand for a property or an acceptable collateral security amounting up to 125 times of the sanctioned loan amount.
  • For all other applicants, the bank requires collateral in the form of third party guarantee. However, it has to be kept in mind that the net worth of the guarantor should be at least 3 times the amount of the loan to be sanctioned.
  • In case of group loans, the bank may demand for collaterals in the form of a guarantee by one permanent employee of the organization. However, this permanent employee will have to act as the principal debtor as well as a co-applicant for loan.

Repayment Period: The repayment period of the loan is set at a maximum of 4 years, by ways of 48 Equated Monthly Installments to be paid on a regular basis, i.e. the applicant has to pay off the entire loan within a period of 4 years. However, in case of group loans a single monthly payment amounting to the total monthly installments of the group will be obtained by the institution.

 

Must ReadPersonal Loan Interest Rates Impacted by 4 Factor

Terms and Conditions:
  • The applicant must state the purpose of the loan in the application form as well as in theloan proposal.
  • The interest rate may change without prior notice to the applicants.
  • The APR may change depending upon the quantum and nature of loan.
  • The terms and conditions under which the loan is issued is at the sole discretion of the bank and may change from time to time.
  • Doctor’s Credit: The bank also issue personal loans to individual practicing or employed allopathic doctors and even dentists, having a professional medical degree.
  • These loans are extended towards funding an individual’s personal or family needs such as purchase of consumer durables like white goods, electrical and electronic equipment, peripherals, funding of medical expenses, funds for inland or foreign travel, inland or foreign business travel, medical treatment etc.
  • Amount of Loan: The maximum amount which can be taken as a loan depends upon the net income of the individual and the provision of security as provided by the applicant subject to a maximum of 10 lakhs.
  • In case of loans issued with 100% collateral: The applicant may avail loans amounting to 15 times of his net monthly salary or income as per his latest audited financials/salary slips, subject to a maximum of Rs.5 lakhs.
  • In case of loans issued without collateral: The applicant may avail loans amounting to 15 times of his net monthly salary or income as per his latest audited financials/salary slips, subject to a maximum of Rs.3 lakhs.
  • The applicant has to submit IT return copies for the last three years.
  • Mode of disbursement: The disbursement of the sanctioned loan amount to all applicants will be done by ways of credit of SB/CD account of the borrower or payments will be made directly to the sellers in case of loans availed for purchase of consumer durables.
  • Requirement of Collateral: The bank may also demand for collateral against the loans that it issues. However, the type of collateral may vary from individual to individual depending upon the purpose of the loan and nature of the applicant.
  • In case of purchase of assets, the assets have to be mandatorily hypothecated with the bank.
  • The bank requires a third party guarantee in case of all the loans that it issues. However, it has to be kept in mind that the net worth of the guarantor should be at least two times the amount of the loan to be sanctioned.
  • In case of loans above Rs.3 lakhs (including OD sanctioned), the bank requires a 100% collateral cover.
  • The bank issues personal loans to all applicants at the rate of 13.00%.
  • The bank levies upfront charges amounting up to a 1% of the sanctioned loan amount.


Repayment Period: The repayment period of the loan is set at a maximum of 3 years, by ways of 36Equated Monthly Installments to be paid on a regular basis, i.e. the applicant has to pay off the entire loan within a period of 3 years.

Applying for a SIB Personal Loan

Personal Loan from South Indian Bank is available online where it can be applied for easily. Customers desirous of availing a SBI Personal Loan online can visit the Paisabazaar.com website. The process is simple and all the personal loan requirements can be fulfilled on the same site. Thus, the applicant can place personal loan requests and also apply for a SIB Personal Loan easily. One can also calculate EMI for SIB Personal Loan on the website. Thus the website provides a complete bouquet of online services for loan applicants.