Compare SBI Personal Loan and ICICI Bank Personal Loan for Best Offers

A personal loan is a good choice but comparing SBI personal loan vs ICICI Bank personal loan is always a difficult task. Do you know why? Because both are leading banks and offer seamless services to the users. This is the reason; people get confused when they compare the two loan products. However, if you’re looking for a loan and the same state of confusion is not letting you decide which one to pick, then you’re at the right place. In this blog, you will find that what are the key areas that you should look for to borrow a loan from one of these banks.

Interest Rate:

When you apply for a personal loan, you look for a lower interest rate so that you can repay the loan on time. However, if you wish to choose SBI personal loan then you must know that it provides the lowest interest rates. But there are certain strings attached to it that you may find confusing. First of all, it offers many kinds of personal loans to different borrowers. In the first instance, it looks like a good offer for government employees. On the other hand, ICICI Bank offers personal loan for salaried and self -employed professionals but its loan products are for everyone. This means whether you’re a govt employee, pensioner, salaried or self-employed, you can avail these loans. Though there will be a slightly higher rate of interest rate as compared to SBI, still it is pocket-friendly. For example, the SBI personal loan interest rate ranges between 11.45% and 14.90% and ICICI Bank personal loan interest rate ranges between 10.99% and 18.49%.

Loan Amount:

As per your need, you may require a higher range or a lower range of personal loan amount. If you need a personal loan up to Rs 5-10 lakh then both banks are capable to fill your pockets but if your need is on the higher side, then you must take the course of ICICI Bank personal loan because it offers a sum of up to Rs 40 lakhs. On the other hand, out of 4 different personal loan schemes, SBI only offers a maximum amount of Rs 15 lakh and remind you that too is not fixed. In simple words, the loan amount is decided on the eligibility of the candidate. So, if your requirement is small, then you can take the loan from any bank but if you need more than Rs 15 lakh, then your ultimate destination for the personal loan should be ICICI Bank.

Tenure:

If you want to feel less burden on your shoulder, you can choose a longer tenure to repay your loan, but to make sure that your lender is offering you longer tenure, you should check the loan tenure before you apply for a loan. For instance, ICICI Bank personal loan offers repayment of up to 5 years. On the other hand, SBI personal loan also offers a repayment tenure of up to 5 years but SBI Xpress credit personal loan offers a personal loan up to 6 years. And, if you’re looking for a longer tenure, then this scheme is built for you.

Processing Fee:

At the time of loan disbursal, an additional fee is charged from the customer which is known as processing fee. Taking a personal loan on a higher processing fee is never going to be a good idea, because you will have to pay a whopping amount as a processing fee. If you’re eager to know about the processing fee of both these banks, then you must know that the processing fee for SBI personal loan stands up to 1 % and in the SBI pension loan, it is zero. On the other hand, the processing fee for ICICI Bank personal loan goes up to 2.25%. Here, you can see the clear difference in the amount paid as a processing fee. So, if you love to save while borrowing, then SBI personal loan is a good choice.

Eligibility and Documentation:

Since SBI Bank offers its loan in 4 different categories, it a surmount task to understand the eligibility criteria of this. Moreover, different loan categories require a different set of documents to process the loan application. In simple words, its eligibility criteria and the documentation process are a bit complex as compared to ICICI Bank personal loan. Because ICICI Bank personal loan offers a simple product and focuses on that one, any borrower can fulfil it easily.

Conclusion

No doubt that both the banks are prominent banks of India but it’s a difficult task to pick one for personal loans. However, there are certain benchmarks, that can be looked for to give a final call. If you are associated with SBI Bank in any way or if you’re a government employee, you should go for SBI personal loan. But, if you’re new to the borrowing and don’t want to indulge in any sort of confusion, then ICICI Bank personal loan is made for you.

Shruti Keshre is a Digital Marketing Executive at Afinoz Digitalizing Finance.