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Personal Loan

The State Bank of Hyderabad (SBH) the largest bank associated with SBI (the State Bank of India). With more than 1500 branches across the country and its headquarters in Hyderabad, it is a leading player in India’s banking and finance industry. A personal loan is among the easiest loans a person can avail as the individual does not have to provide their house or flat as security, unlike a home loan, they also need not to show proof of admission, as with an education loan. Personal loans are availed for myriad reasons, from paying high fees, for financing a wedding, for paying off a credit card balance.


Features of SBH personal loan
 

  • The SBH Personal Loan has an uppermost limit of Rs.7.5 lakhs. First time borrowers however, will get a maximum of Rs.5 lakhs.
  • The SBH personal loan has to be paid back within 36 months. The borrower has to ensure that his or her repayments begin at the end of the first year of taking the loan and the repayment must be completed within three years.
  • The interest rate that the bank charges are very attractive as compared to other banks.  
  • Loan is sanctioned with complete transparency. It levies zero hidden charges, reasonable processing fees and easy loan processing with up-to-date information about loan application status at every stage. Therefore, when you avail a loan, you can be assured that there are no hidden charges applied which can burn a hole in your pocket and which are not informed to the customer prior to the loan application. The processing fee is not fairly high but corresponds to the amount of SBH personal loans availed.
  • Exhaustive provision for connecting with the bank through Mobile banking, Net banking and Phone Banking. There are many options for the customer to connect with the bank in respect of any query he or she may have, in relation to the SBH Personal Loan availed. Borrowers may contact the bank with their grievances, problems or queries. With such a variety of communication option, every query can be addressed with a guarantee that it will be answered correctly and promptly.
  • The loan is repaid through Check off facility. Where the Check off facility is not available, the loan may be repaid through Equated Monthly Instalments (EMIs). The SBH personal loan is generally paid through post-dated cheques but can also be paid through the Electronic Clearing Systems (ECS).

Different types of SBH personal loans

SBH Prashanti scheme:


Purpose:

To enable the Pensioners to meet their personal expenses State Bank of Hyderabad offers the loan under this scheme. The loan amount can be utilized by the borrower to meet his personal expenses, medical expenses, or for the marriage of the children. The bank has introduced four types of pension loan schemes they are as follows:
 

  • SBH LOAN TO PENSIONERS.
  • SBH LOANS TO FAMILY PENSIONERS.
  • SBH LOAN TO PENSIONERS WHO ARE 70 YEARS OF AGE OR ABOVE.
  • SBH PENSION LOAN TO affluent PENSIONERS-“PRASHANTI SCHEME”.

Eligibility:
 

For the Pensioners


Everyone from State and Central Government including railways, defense and telecom Department Pensioners and bank Pensioner’s whose account is maintained with the State Bank of Hyderabad branch.


In case the age of the pensioner is not more than 72 years of age.


Loan Amount: The loan amount can be a maximum of 12 months net pension with a restriction of Rs.7.50 lacs only. The EMI cannot exceed the 40% of the amount of the net pension. The age of the borrower at time of full repayment of the loan should not be more than 74 years.


In case the age of the pensioner is above 72 years and not more than 75 years.


Loan amount: The loan amount can be a maximum of 12 months net pension with a restriction of Rs.2.00 lacs only. The EMI cannot exceed the 40% of the net amount of the net pension. The age of the borrower at the time of the repayment of the loan should not be more than 77 years.


For the family pensioners


Family pensioner is the spouse of the deceased is authorized to receive the pension after the death of the pensioner subject to the condition that the age of the spouse cannot exceed 70 years.

 

  1. Loan Amount:

The SBH personal loan amount can be a maximum of 12 months net pension/net family pension with a restriction of amount not exceeding Rs.7.50 lacs. The EMI for the loan also cannot exceed 40% of the net pension amount.
 

  1. Repayment:

The repayment of the loan is made through Equated Monthly Installment or EMI.
 

The Loan repayment starts from the succeeding month of sanction of loan.
 

  1.  For Family pensioners:

The SBH personal loan EMI’s can be a maximum for the 36 months. Age of the borrower at the time of the full repayment cannot be more than 70 years.
 

  1. Collateral Security:

    For Pensioners:

    The guarantee of the spouse of the pensioner is required. If the spouse is not alive then the guarantee of the third person of family who will be eligible for the pension after the death of the pensioner will be required.


For family Pensioners:


The guarantee of the third party is required provided he is maintaining a satisfactorily conducted        account with the bank. The son or the daughter is preferred as the third party provided they hold the net worth equivalent to the loan amount.
 

  1. Type of loan: this loan provided to the pensioners is a kind of demand loan.
  2. Processing fees: the processing fees charged for the loan is Rs.562/- which includes the service tax @12.36%.

Documents required:

  • Application form cum Authority letter.
  • The demand promissory note to be signed by the Pensioner/ family pensioner in favor of the guarantor and endorsed by guarantor in favor of bank.
  • DP note delivery letter.
  • Letter of waiver

Personal loan scheme- personal loan unsecured
 

  • Purpose: This kind of General purpose unsecured loan are individuals, resident individuals and resident Indians.
     
  • Eligibility:

Category 1. The persons eligible for this kind of unsecured loan are employees of State/ Central Government/ Semi-Government/ Profit making PSU’s with a minimum of 3 years of service in present.


Category 2. Employees of the Private sector companies with SBH 1to 3 rating who are currently banking with the state bank of Hyderabad with a minimum of 3 years of service in the current organization.
 

  • Age: The minimum age required for the loan is 21 years and maximum of 55 years of age or the 36 months prior to superannuation.
  • Loan Amount: The SBH personal loan amount is linked to the Net monthly income (NMI)/ Net Annual Income (NAI) and can be as under: Category 1 & Category 2.customers: 12 times of the NMI subject to a minimum of 25000/-, maximum of 7.5 lacs. However if the person is availing the loan for the first time then the loan amount is restricted to 5.00 lacs.

Quantum of SBH personal loans are subject to the following conditions:
 

Net Annual income required for SBH personal loan

EMI/NMI RATIO

Up to Including Rs.3 lacs.

Should not exceed 35%

 

Above Rs.3 lacs up to including Rs.5 lacs

Should not exceed 50%

Above Rs.5 lacs

Should not exceed 60%

  • Repayment: The repayment of the loan has to be done within 36 Equated Monthly Installments (EMI).
  • Security: check off facility is available for the security purpose but if the check off facility is not available then postdated cheques can be given. ECS mandate should be obtained from the bank.
  • Type of Loan: this unsecured loan is a kind of Demand loan.
  • Processing Fees: The processing fee is 1 % of the advance which can be a minimum of Rs.1000.
  • Cooling Period: No cooling period for this type of unsecured loan is allowed.
  • Prepayment charges: No prepayment charges are taken by the bank for this.

Rupee loans to NRI’s
 

The State bank of Hyderabad also offers the loans to the NRI’s for the general purpose. The Rupee loan offered is a kind of personal loan to the NRI’s.
 

  • Purpose: The purpose of this type of SBH personal loan is to provide the NRI’s or the third party loan for meeting the general purpose.
  • Eligibility: the eligibility for this loan is that the person should be a FCNR deposit account holder.
  • Loan Amount: The loan that is sanctioned can be 75% of the FCNR deposits multiplied by the level rates.
  • Security: The Borrower is required to tender the FCNR/ term deposit receipts to the bank duly discharged.
  • Repayment: The repayment can be made through maturity deposits of the FCNR or term deposits or by fresh inward remittance NRE a/c’s/NRO/local funds for the third party loans.
     
  • Rate of interest: The rate of interest is as follows:

To depositors themselves:


Against NRE term deposits- 1.00% above the interest rate offered on the NRE-TDR’s


Against FCNR deposits- the rate of interest is 11.75% P.A.


Against rupee max gain deposit: the rate of interest is 10.75% P.A.


To third parties:


Against NRE deposits term deposits: as applicable to the respective segmental advances.


Against FCNR deposits-The rate of interest is 12.75% P.A.
 

Discharge: discharge of the FCNR deposits can be discharged by the deposit holder only.

SBH personal loan eligibility

Before applying for a Personal Loan from State Bank of Hyderabad, the customer will need to check whether he or she is eligible to apply for an SBH personal loan. Not all and sundry can avail a loan at their whim. There are necessary criteria to be fulfilled before the bank grants a loan and every applicant is required to match the stipulated criteria. Below is a list of requirements for personal loans the applicant has to match so that he or she will be eligible to seek a loan from the bank.
 

  • The State Bank of Hyderabad offers SBH personal loans to salaried individuals including doctors, CAs, employees of private employees of public sector companies including central, state and local bodies. Therefore, anyone who is an employee, be it a general employee or professional employee can apply for a SBH personal loan. Employees of Private Sector Companies with a State Bank of Hyderabad 1 to 3 rating may avail of this loan.
  • The individual should be between 21-55 years of age, or 36 months prior to superannuation. Therefore, anyone who is aged 21 years and above can easily avail the loan if he or she matches the other mandated criterion. However, the upper limit on age is 55 years, so for people aged 55 or above SBH personal loans is not allowed as per the bank’s loan policy.
  • The individual should be employed in his current job continuously for a period of at least three years minimum. This condition is applicable whether the loan applicant is working in a public sector company or a private sector company.
  • Loan applicants who apply for the State Bank of Hyderabad Personal loan, who are working in a private sector company should have a State Bank of Hyderabad account.

Factors that affect the SBH Personal Loan amount eligibility
 

There are several factors that affect the SBH personal loan applicant’s eligibility for the SBH Personal Loan. They are as follows:
 

  • SBH will consider higher earning individuals as more likely to be able to pay off their loan.
  • Age – This is a tricky category, as younger loan applicants may find it hard to get their personal loan requests sanctioned by the bank if SBH considers them to be too fickle where their employment is concerned. However, loan applicants who are on the verge of retirement may also find that their loan request does not get approved easily as their loan repayment capacity will diminish post retirement.
  • The loan applicants’ CIBIL score will be checked by the State Bank of Hyderabad the loan gets approved or declined by the bank.
  • Loan applicants with an employment history that is relatively stable will find that their loan application gets approved more easily than those who have an unsteady employment history. SBH will consider a stable work history as a sign of credibility.
  • A loan applicant’s healthy banking relationship with the State Bank of Hyderabad is a key to understanding the applicant’s financial background.
  • If the loan applicant bears the load of an existing debt, it will be viewed as a financial burden by SBH until the applicant clears it.
  • Loan applications from individuals who enjoy permanent employment of companies would be viewed more favorably than those individuals who are under temporary employment.

Interest Rate of State Bank of Hyderabad Personal Loan Unsecured

The SBH personal loan interest rate that will be calculated by the bank will be based on the credit score of the loan applicant.
 

  • If the SBH personal loan applicant’s credit score is more than 80 then his or her interest rate for personal loan will be Base Rate + 5.50%, that is, 15.70% per annum.
  • If the loan applicant’s credit score is ranges from 71 to 80 then his or her interest rate will be Base Rate + 5.75%, that is, 15.95% per annum.
  • If the SBH personal loan applicant’s credit score is between 61 to 70 then his or her interest rate will be Base Rate + 6.00%, that is, 16.20% per annum.

State Bank of Hyderabad Personal Loan Charges
 

 

Fee

Amount

Loan Processing Charge

1% of the advance, subject to a minimum of Rs. 1000.

Pre-payment Charges

There are no pre-payment charges

No Due Certificate / No Objection Certificate (NOC)

NIL

Duplicate of No Dues Certificate / NOC

NIL

Solvency Certificate

NA

Stamp Duty and other Statutory Charges

As per applicable laws

Legal / Incidental Charges

Actual


Must ReadPersonal Loan Interest Rates Impacted by 4 Factors

Documentation

Loan applicants can provide a copy of of their Voter’s ID card, or Passport or Driving License as a proof of identity to apply for this personal loan. As address proof, the SBH personal loan applicant may provide copies of their Ration Card, Passport, telephone bill, Rental Agreement or Electricity Bill. The Loan applicant will have to provide their current dated salary certificate along with the Form 16 or their most recently received salary slip. They also have to provide a bank statement with the previous three months banking details or a passbook with the previous six months banking details. The loan applicant has to provide the above in original and in self-attested copies to the bank. SBH will use them to verify the identity, address, financial standing, and income and credit worthiness of the loan applicant.

EMI Calculator

The bank provides the facility of EMI Calculator to calculateEMI for SBH personal loan payable under the loan. Following are some of the instances of calculated SBH personal loan EMI using the bank’s available calculator.
 

  • Mr. Dhawan wants to go on a foreign trip to Europe with his wife to celebrate their 25th wedding anniversary. The tour operator gives a figure of 5 lakhs for which Mr. Vermahas to seek a loan. As per his financial planning process, he feels that he will be able to repay SBH personal loan within a period of 3 years. He is an existing accountholder of the bank and inquires about the rate of interest chargeable and the EMI. He visits a branch of SBH and discusses the situation with a SBH personal loan agent who gives him the EMI figure of Rs.17505, at an interest rate of 15.70%.
  • Mr. Malhotra has a daughter who is all set to marry. Being a grand celebration, Mr. Malhotra starts making a budget. After utilizing all his existing savings for the marriage, he faces a shortfall of 3 lakhs for which he decides to avail a loan. He approaches State Bank of Hyderabad with the proposal and agrees to repay the loan in 3 years. The bank charges him an EMI of Rs.10540 at an interest rate of 15.95%.
  • Tushar recently got a transfer and has now been relocated to Pune. He buys a house and needs Rs.1 lakh for purchasing the necessary appliances for his new home. He doesn’t want to put a dent in his meagre savings and so he decides to seek a SBH personal loan from State Bank of Hyderabad. The bank charges him Rs.4882 in EMIs at an interest rate of 15.70%.

The following table records the EMI of each of the above-mentioned cases for easy understanding:
 

Applicant

Loan Amount(Rs.)

Interest Rate

Tenure for SBH personal loan

EMI (Rs.)

Mr. Dhawan

5 lakhs

15.70%

3 ears

17505

Mr. Malhotra

3 lakhs

15.95%

5 years

10540

Tushar

1 lakh

15.70%

2 years

4882

Why State Bank of Hyderabad Personal Loan?

State Bank of Hyderabad’s vision is “To be the most preferred and trusted bank”. To achieve this vision, SBH has a set of values in place where transparency and ethics in their dealings, respect for the customer, and competence and dedication are of prime importance. State Bank of Hyderabad places great importance on these values and it is evident when one takes into account the many thousands of satisfied customers who trust SBH for all their banking needs. Customers prefer to take personal loans from SBH, as they know that State bank of Hyderabad offers personal loan facility with honesty and transparency. They are not made subject to hidden charges and costs, the loan sanctioning process is one that is trouble-free, and there are many more benefits that they gain from State Bank of Hyderabad that they would not get from another bank. The following points illustrate why customers prefer to avail.

STATE BANK OF HYDERABAD PERSONAL LOANS ARE:
 

  • Easy documentation
  • Fast processing
  • Interest rates that are quite attractive and competitive as per industry standards
  • Daily reducing balance
  • Affordable processing fee
  • No hidden costs or charges

Applying for a SBH Personal Loan Unsecured

The customer can apply for SBH personal loan online through the website www.Paisabazar.com.The interested loan applicant will have to fill up a loan application form and provide the necessary documents for proof of identity, proof of residence and proof of income to apply for a SBH Personal Loan.


The applicant will need to provide his personal details like name, age, address, occupation, income, etc.  In order to match the eligibility criteria laid down by the banks to offer Personal Loans. If the profile of the applicant matches the required eligibility criteria, all the documentation process will be completed and the applicant has to submit the necessary documents as per the personal loan requirements. After the bank satisfies itself with the eligibility criteria and after all required documents are submitted and successfully verified, the SBH personal loan will be granted without any further delay.