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Your CIBIL score acts as the primary criterion that determines your eligibility for a personal loan. All banks, including State Bank of India, assess your score as an important part of the loan approval process. Your score, which is mentioned in your CIBIL report, is an analysis of your credit history, count of your prevailing loans, frequency of loan and credit card applications, timeliness of repayment of dues, and various other factors. These parameters enable SBI to analyze the probability of recovering the personal loan amount, in case they offer you a loan.
For poor and medium good CIBIL scores, personal loan applications are assessed on the basis of other parameters like current monthly income, credit utilization ratio, employment stability, etc.
The CIBIL score, evaluated on a scale between 300 and 900, is divided into different categories. 300 defines the lowest score and 900 indicates the highest. Each of these categories has different interpretations for lenders like SBI and other non-banking financial institutions, which determine your personal loan eligibility.
Here’s the meaning of CIBIL scores for SBI personal loan:
SBI personal loans enable borrowers to finance their personal objectives, whether it is a medical treatment or vacation or any other financial need. Let’s take a look at the types of SBI personal loans:
Low interest rates, and that too, charged on interest on a daily reducing balance, makes it one of the most competent personal loans. Low processing charges and lack of security payment and additional charges add to the benefits that this SBI personal loan offers. Minimal documentation makes it even more convenient for borrowers to opt for this SBI personal loan.
Nominal processing fees (Nil Processing Fees for Defence Pensioners), no hidden costs and Quick and seamless loan processing enable borrowers to meet planned as well as unforeseen personal and medical expenditures. While there are no nominal processing charges applicable for Defence Pensioners, nominal charges are applicable for other loan borrowers.
This SBI personal loan is best suited for employees of Central and State Governments, Quasi Government Bodies, Defence Establishments, Educational Institutions, PSUs, and selected rated corporates.
Your CIBIL Report includes details regarding every defaulted payment for the next three years. Hence, the lack of timeliness of debt repayments becomes visible to SBI when you apply for a personal loan in the future. This raises a red flag for SBI, making them sceptical of offering your personal loan.
The following are some of the leading factors that may lead to SBI personal loan rejection:
Follow these tips to gradually enhance your CIBIL score for being eligible for SBI personal loan:
What are the personal loan rates of SBI?
The interest rate on SBI personal loans, as per October 2018, varies between is 11% and 15.4%, depending on the SBI personal loan scheme. There may be additional charges, like processing charges, applicable over and above the basic interest rate applicable on SBI personal loans.
What are the eligibility criteria for getting SBI Bank personal loan?
The below chart will give you a clear understanding of the essential eligibility criteria for purchasing a SBI personal loan:
What if I have a low CIBIL score? Will SBI still give me a personal loan?
The higher your CIBIL score, the higher are your chances of securing a personal loan across banks. The same is applicable for SBI personal loans as well. Not just getting a personal loan, you will also be eligible for it at favorable terms and conditions like comparatively lower interest rate and higher loan amount. A CIBIL score over 750 is generally considered to be a good score.
Middling scores between 600 and 749 reduce your chances of getting a SBI personal loan, but does not eliminate your chances altogether. However, with such CIBIL scores, the bank may consider to evaluate your eligibility for a personal loan based on other factors like monthly income, employment stability, number of existing loans, etc.
CIBIL score between the range of a 300 and 599 minimizes your scope of getting a SBI personal loan to a great extent. In such cases, a personal loan may be offered against collateral like shares, assets, gold schemes and FDs.
Does skipping SBI payment affect my CIBIL score?
Yes, skipping bank loan payment is one of the common reasons that affect CIBIL scores. If you default on your SBI personal loan payment, it will definitely reduce your CIBIL score.
Will a loan settlement with SBI affect my CIBIL score?
Yes, loan settlement with banks, including SBI, affects your CIBIL score.
Can I get more than 3 SBI personal loans if I have a good CIBIL score?
Yes, it is possible for you to get more than 3 SBI personal loans. However, it does not depend only on your CIBIL score. There are several other criteria involved, as per the discretion of the bank.