Situated in Mumbai, the State Bank of India is among the top 50 most successful banks in the world. It offers a wide variety of personalized financial services, including credit cards and loans.
To find out whether doing business with this bank is worth it, I went to apply for a loan and came to a few conclusions on its advantages and downsides. Let’s get started!
- Basic Info on the State Bank of India
- What Is the SBI Bank Loan?
- Why the SBI Bank Stands Out from Other Borrowers
- Pros and Cons of the SBI Bank Loan
- What Is Required to Get Started with the SBI Bank Loan?
- Types of SBI Loans
- Friendly YONO App
- SBI Loan Terms and Amount
- Minimal Processing Fee/Good Service
- SBI Bank Contact Details
Basic Info on the State Bank of India
Before I get into the basics of the loan offered by the SBI Bank, I want to cover its history and business concept.
Operating since 1955, its head office is in Mumbai, India, and it is ranked 43rd largest bank in the world according to a 2020 survey.
It is highlighted by an innovative banking approach and offers a superb mobile wallet that can easily be compared to that of the most successful banks.
One of the coolest points is that their online platform allows users to monitor their accounts and make payments 24/7 in a matter of seconds.
Enhanced Banking Experience
Talking about online banking, the State Bank of India does a great job offering zero liability fraud protection, instant response to inquiries.
Plus it has the ability to transfer money from one account to another without having to go through complicated compliant forms.
What Is the SBI Bank Loan?
Advertised to be the friendliest bank loan in India, the customer service told me that I could loan up to 2,000,000 RSI.
It is great to know that the monthly tenure is something that I can negotiate on, and not only that but be able to skip a billing cycle after making a couple of straight payments.
The basic requirements of the loan are that the applicant needs to be between 18 and 58 years old.
In addition to that, provide proof of income, residence, and a copy of an ID document that SBI will go through.
It is great to know that there aren’t many requirements and that as long as I meet all of the criteria, I would be able to get a loan within two business days.
Keep in mind that you need to submit a new photo that will be imprinted on the loan agreement once approved.
Why the SBI Bank Stands Out from Other Borrowers
One of the coolest points of the loans offered by the SBI Bank, whether it is the Private Home loans or Refinancing loans, is that the institution offers competitive introductory rates.
You also can agree on a fixed rate as long as the applicant has a clean credit history and a minimum income of 5000 RSI.
In my personal opinion, it is an ideal choice for people who want to refinance a home loan, especially because it combines good credit offers and isn’t that hard to get approved.
The most important point is that in most cases (especially if the person doesn’t have a great credit rate), the State Bank of India gradually increases the interest rate.
Gradually Increased Interest
As mentioned above, after 3 years, I would expect the interest to go from 12% to 15-16%.
The best way to prevent this is to opt for short-term loans or apply for a new one every couple of years.
Pros and Cons of the SBI Bank Loan
When it comes to the biggest advantages of the State Bank of India loans, the first one is that it is an ideal choice for someone who wants to refinance home loans every couple of years.
As someone interested in renovating their home, it sounded like the best offer.
Apart from being great for new home loans, it is also great for existing home loans, and I said it is the best way to avoid increased interest rates.
Talking about the downsides, the first is that it isn’t ideal for those who want a loan for BTO units.
High Total Interest Rate
Additionally, while I was able to refinance my loan, people who aren’t able to do that will face a high interest rate as it increases over the years.
What Is Required to Get Started with the SBI Bank Loan?
As mentioned above, the application process isn’t complicated and can be done through an online inquiry or via a telephone line.
Before I got started, I wanted to make sure that I met all the eligibility criteria to improve my chances for instant approval.
Anyone who submits all of the required information and has an adequate credit score should be accepted for a loan in a matter of days.
The first requirement is to be over 18 years old, and the second requirement is to be under 58 years old.
Luckily, I met both criteria and moved on to submit proof of my identity and proof of residence.
The best way to increase my chances of getting approved is by showing proof of clean credit history and a score that is above 750.
Types of SBI Loans
Apart from the mentioned home loan and refinancing loans, the SBI bank also offers personal loans, gold loans, and vehicle loans of up to 2,000,000 RSI.
One of the coolest points is that the bank suggests a payment schedule of 5 years and a tenure that goes as low as 10,000 RSI when it comes to the max sum.
Talking about the application process, I was able to get approved within just a single day, with the funds arriving in my SBI account shortly after.
Judging by my personal experience, SBI offers friendlier interest rates when it comes to personal loans, as I was met with 11.5%, which I gladly accepted.
Friendly YONO App
I’ve already suggested that the State Bank of India does a fantastic job when it comes to mobile and online banking.
The featured YONO app lets me monitor my savings and current account and make direct payments towards the lender.
I applied for the personal app through the YONO app, and I think that it is one of the reasons that my loan got sanctioned so fast before they even collected all of the needed documents.
The developers for the SBI Bank seem to know what they are doing as the YONO app is available for iOS and Android users and can be downloaded through the respective app stores.
SBI Loan Terms and Amount
When it comes to personal loans, the average sum seems to be set at around 100,000 RSI.
However, that doesn’t mean that I can’t use the SBI Bank services for other purposes as they offer a flexible payment schedule and a friendly tenure compared to most Indian banks.
Firstly, the maximum loan amount is set at 2,000,000 RSI, which is more than enough to refurbish a home.
In addition to that, the tenure is something that I was able to negotiate with the bank and depended on my creditworthiness and the time that I was getting the loan for.
Flexible Loan Schedules
As mentioned above, SBI is pretty friendly when it comes to offering its users enough time to pay off the loan.
Thus, I found that the most common personal loans are set between 1 and
5 years and depend on the sum of the loan.
Minimal Processing Fee/Good Service
As for the biggest advantages apart from the flexible payment schedules and versatile loan options, the SBI also offers friendly customer service.
In my experience, I was able to settle issues related to account opening and get answers to all my questions within a few hours.
Not only that, but it seems that the team that is approving applicants also works at a great efficiency without charging a large processing fee.
Thus, apart from the higher interest rates that can come if you aren’t able to refinance the loan, there isn’t a lot to say against this SBI financial instrument.
The main issue is that the home loans have an interest rate that increases over the years and can become quite a burden, especially if the borrower isn’t able to refinance their loan.
SBI Contact Details
First and foremost, the SBI Bank offers an extensive how-to page that effectively addresses all of the questions and issues related to account opening, the loan application process, and the changing interest rates.
While I couldn’t find a phone line that is directly related to their customer service, there is a complaint page.
Through this, I could request an answer or raise my concerns regarding problems that I came across.
As mentioned above, their complaint team seems to be working at great speed as all of the answers came within hours.
SBI Bank Head Office
Last but not least, apart from being able to visit the nearest branch and have my issues solved in person, I also wanted to know the information on its head office.
You can find the main office at State Bank of India, State Bank Bhavan, 11th Floor, Madama Cama Road, Mumbai-400021.
You can contact them on 1800112211 (toll-free from MTNL/BSNL) or 18004253800 (toll-free from BSNL).
No one can deny that the State Bank of India is a financial institution that offers a wide variety of personal, home and vehicle loans. According to my experience, while the high interest can be annoying, it is something that I was able to affect by refinancing my loans.
Note: There are risks involved when applying for and using credit. Consult the bank’s terms and conditions page for more information.