SBI's Festival Loans will have no prepayment charges, the bank said.
If you are planning on take a loan to finance some festive season shopping but do not wish to completely exhaust your credit card or take a personal loan, State Bank of India, the country's largest lender has rolled out its Festival Loans program. The loans can be used meet any kind of festival related expenses, the bank said, adding that these loans will be cleared with minimum documentation and will carry no administration charges. The loans will have a ceiling of Rs 50,000, SBI said.
Here are the important details about SBI's Festival Loans
Loan limit: The festival loan limit would be determined by your income and repayment capacity. The minimum amount of Loan is Rs.5000/- and maximum amount of the loan is 4 times your Net Monthly Income, with a ceiling of Rs.50,000.
Documents needed: You need to show your latest Salary clip and Form 16, in the case of salaried persons. In case of self employed individuals and professionals, IT returns for the last two financial years needs to be presented. SBI will also require a passport size photograph and proof of residence.
Security: SBI said that no primary or collateral security is required if check-off facility is available from your employers. Otherwise, personal guarantee of the spouse or any other person of adequate worth will be required.
Charges: The bank will charge a processing fee of Rs.100 per application. You can prepay the loan partly or fully, at any stage, without any prepayment penalty, SBI said.
EMI Schedule: The loan is repayable in up to 12 equated monthly installments, SBI said.