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Personal Loan

The State Bank of Patiala through a vast network of 1236 branches offers numerous products which are utterly designed per the requirement of mass Indian Customers .The loans products offered by State Bank of Patiala is broadly in three categories.

  • Personal Segment Loan- Personal Loan, Home Loan, Education Loan etc
  • MSME Segment Loan- Loans for Medium and Small size enterprises including Professionals such as doctors etc.
  • Agriculture Loan- Loans exclusively designed to cater the financial requirement of agricultural sector and allied activities.

SBP Personal Loan

 A personal loan, as the name signifies is a loan granted for any purpose for which customer may seek some urgent financial need. This could be many a type of expense both premeditated and not deliberated. State Bank of Patiala ensures an agreeable customer service through its hassle free processing system and transparency in the entire process.

Post evaluation of the customer profile and their repayment capacity, both the salaried and self-employed professionals can apply for personal loan for any legitimate purpose whatsoever.

The eligibility and documentation requirements for personal loans in SBP are minimal and if the bank is satisfied about the credentials and repayment capacity of the applicant, the loan dispersal is almost immediate.

 

Features and Benefits of SBP Personal Loan are:

  • Loan amount in a tune of minimum 1 lacs to maximum 10 lacs depending on customer profile and requirement.
  • The tenure is provided to a maximum term of 60 months i.e. 5 years
  • Floating rate of interest so that the customers can reap the benefit of any change in interest rate as per market situation.
  • Processing Fee is collected upfront @  1.01% of the Loan amount.
  • With no pre-closure charges , customer can pay off the loan at any point of time once they have the funds with them.
  • No collateral required and minimal documents.
  • Multiple modes for EMI payment- PDC/Standing Instruction for auto debit from SBP savings account or ECS mandate for direct debit from any other bank account.
  • Any delay in EMI payment for more than 1 month attracts a Penal interest @ 1% over and above the applicable interest rate) on the entire loan outstanding for the period of default.
  • Moreover the default in payment shall be subject charging a penalty, the rate of which shall be at the discretion of the bank. For every issued cheque return irrespective of reason a charge of Rs. 281/- shall be imposed in addition to the enhancement in rate of interest.
  • Customer doesn’t have the flexibility to convert the rate of interest from floating to fixed.
  • The repayment is done as Equal Monthly Instalments or generally referred as EMI.

Interest Rate

Product

Rates

Personal Loan Scheme

12.50% p.a. (3% above MCLR i.e. 9.50%)

(Where check off facility is available)

Personal Loan Scheme

14.50% p.a. (5% above MCLR i.e. 9.50%)

(Where check off facility is not available)

 

Fees & Charges

Amount

Application Fee

Nil

Loan Processing fee

1.01% of Loan Principal Amount

Foreclosure Charges

Nil

Interest Rate Conversion Charges (Switching from Floating to Fixed Interest or Vice-Versa)

N.A

Late Payment Charges

1% PA on the total outstanding amount if the Emi is delayed for more than one month.

Cheque Bounce Charge/ EMI Bounce Charge

Rs. 281/- for each return

Documents Required for SBP Personal Loan

For SBP Personal loan, the bank normally do not ask applicant for more than a few critical documents for approving a loan which makes things much simpler and hassle free for applicants.
 

List of papers / documents applicable to all Resident individual applicants are

  1. Completed loan application
  2. 2 passport size photographs (including those affixed in loan application)
  3. Proof of identification: Electoral ID Card / Passport / Driving License / PAN card.
  4. Proof of residence: Electoral ID Card / Passport / Electricity Bill / Telephone Bill.
  5. Proof business address, in case of non- salaried borrowers
  6. Statement of bank account for the last six months
  7. Signature identification from present bankers
  8. Personal Assets and Liabilities Statements in Bank’s standard format.

Additional documents required for salaried persons:

  1. Original salary certificate for last month.
  2. TDS certificate- Form 16 or copy of I.T. Returns for the last two financial years, duly acknowledged by I.T. Deptt.

For professional /self- employed / businessmen:

  1. Three years I.T.Returns duly acknowledged by I.T Deptt./ I.T. Assessment Orders for computation of income
  2. Copies of challans in respect of advance payment of income tax

For Professionals the highest professional qualification degree is also required. The above list is indicative of what banks generally ask before processing a loan application. The requirements vary as per the bank’s policy; some may ask for all documents while some may ask for only a few from the above.

SBP Personal Loan to Pensioner Scheme

State Bank of Patiala offers personal loan to pensioner who have regular flow of pension to their SBP saving account. This allows the retired pensioners to meet any urgent financial requirement.

The Key Features of SBP Loan to Pensioner Scheme are:

  • The quantum on loan amount for Individual pensioner is minimum from Rs.25000/- to a Maximum limit of 18 Months 'Pension with Ceiling of Rs.10.00 lacs for Pensioners who are up to 72 years of age. The EMI to NMI ratio should exceed 50%
  • For Family Pensioners the minimum loan amount is Rs.25000 to a maximum of 18 Months' pension with a ceiling of Rs.5.00 lacs for Pensioners who are up to 72 years of age. The EMI to NMI ratio should exceed 33%
  • The tenure offered is of maximum 60 months.
  • Interest rate is offered on floating basis.
  • Nil Pre closure charges.
  • No penalty for any default in monthly repayment.
  • No collateral required and minimal documents.
  • Annual outstanding balance statement is issued t the end of financial year i.e. 31st march.

Rate of interest:

Product/Loan Amount

Interest Rates w.e.f. 08.06.2015

Loan to Pensioners

12.75% (3.25% above MCLR rate i.e.9.50%)

 

Fees & Charges:

Fees & Charges

Amount

Application Fee

Nil

Loan Processing fee

Rs. 570/- (Not Applicable for Ex-Staff SBP Pensioners)

Foreclosure Charges

Nil

Interest Rate Conversion Charges (Switching from Floating to Fixed Interest or Vice-Versa)

N.A

Late Payment Charges

1% PA on the total outstanding amount if the Emi is delayed for more than one month.

Cheque Bounce Charge/ EMI Bounce Charge

Rs. 281/- for each return

 

Repayment of Loan:

EMI - The loan amount has to be paid in the form of Equated Monthly Instalment or generally referred as EMI in banking terms. The EMI is basically the sum of Interest amount and a principal component wherein the interest rate is charges on reducing balance. Borrowers can repay the EMI through below mentioned modes

  • Standing Instruction in SBP saving account – For this provision loan bowers needs to furnish one standing instruction form mentioning their SBP saving account details while applying for the loan.
  • ECS (Electronic Clearance System) - Through ECS mode customers may repay the EMI  by instructing their banker to deduct the EMI (Equated Monthly Installment) from the designated Bank Account
  • Post-dated Cheques – Borrowers may issue Post dated cheques favoring The State Bank of Patiala for the total numbers EMIs to be paid

Security/Collateral – SBP personal loans doesn’t require any security or collateral to be pledged in lieu of the loan sanctioned. The SBP personal loans are generally cash loan issued for any genuine purpose. Once the applicant satisfies the loan eligibility, State Bank Patiala offers the loan for the purpose as stated in Loan End-use Declaration.

EMI Calculator

The applicant prior submitting can check and plan their loan application amount with the help of this calculator. EMI calculator empowers customer to have their financial planning intact post availing the loan .

Applicants may check the same in simple and easy to comprehensible method.

  • Click on Personal Loan EMI Calculator
  • Fill up the loan amount intended to be availed
  • Enter the rate of interest. Customer may refer to the respective product catalogue online itself for interest rate.
  • Enter the tenure as planned and submit
  • The result would be spontaneous and would give the exact EMI amount.

Important Terms and Conditions

  1. State Bank of Patiala maintains the right to change charges or fees for personal loan from time to time or to induct any new charges or fees, as and when required at its own discretion
  2. State Bank of Patiala is authoritative to divulge any information relating to the personal loan account details to any Government approved credit bureau without any obligation to notify the borrower.
  3. For any delay/default in payment of EMI by due date, State Bank of Patiala has the sole right to intimate customer through various modes such as  post, fax, telephone, email, SMS messaging and / or through third parties appointed for collection purpose to remind, follow-up and collect dues. Any third party so appointed, shall adhere to the Indian Bank Association’s (IBA) code of conduct on debt collection.
  4. The Bank reserves the right to collect any tax is levied by the State/Central Government and /or other Authorities in respect of this transaction
State Bank of Patiala Personal Loan
(4/5 ) 1 Review
Personal LoanPersonal Loan
4/5

Overall good

This was my first experience with State Bank of Patiala and overall it was satisfactory. I applied for a personal loan scheme and it got approved easily at a very low interest rate. I have also recommended my friends about this bank.

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Posted on: Jan 17 , 2017