SBI Personal Loan: State Bank of India (SBI) is the country’s largest bank, and millions of customers use their personal loan facility. This loan is useful for any personal need such as weddings, children’s education, medical expenses, home renovation, or urgent business requirements. However, the biggest question remains: if you take a ₹10 lakh personal loan from SBI, what will be the monthly EMI, what will be the bank’s interest rate, and what processing fees will be charged? Let’s understand this with simple language and accurate calculations.

SBI Personal Loan Interest Rates and Terms

As of August 2025, SBI personal loan interest rates range from 11.15% to 14.30% per annum. This rate depends on your CIBIL score, salary, and profile. The better your credit score, the higher the chances of getting a loan at a lower interest rate.

SBI also charges a processing fee on this loan. Currently, the processing fee is up to 1.50% of the loan amount, plus GST is charged separately. This means for a ₹10 lakh loan, the processing fee could be approximately ₹15,000.

EMI Calculation for ₹10 Lakh SBI Personal Loan

Let’s assume you’ve taken a ₹10 lakh personal loan with an interest rate of 12% per annum. Here’s how the EMI will vary for different tenures:

The table clearly shows that if you choose a 3-year loan, you’ll pay an EMI of ₹33,237, but you’ll pay less total interest. However, if you choose a 5-year tenure, the EMI reduces to ₹22,241, but you’ll pay more interest.

Right Way to Decide EMI

EMI selection depends on your monthly salary and expenses. If your salary is more than ₹50,000, you can take a shorter-term loan and pay it off quickly. However, if your salary is between ₹30,000 to ₹40,000, taking a longer-term loan would be appropriate to reduce the EMI burden.

It’s important to note that choosing a longer tenure means paying more interest. Therefore, when deciding on EMI, you should consider your savings and future responsibilities before making a decision.

Processing Fee and Other Charges

SBI charges up to 1.50% processing fee on personal loans. If you take a ₹10 lakh loan, the processing fee will be approximately ₹15,000 plus additional GST. Additionally, if you want to prepay the loan, prepayment or foreclosure charges may apply, depending on the bank’s terms and conditions.

Why SBI Personal Loan is Better

SBI’s Personal Loan is safe and reliable because it comes from the country’s largest government bank. The interest rates are competitive compared to other banks, documentation is easy, and money gets transferred to the account quickly. Additionally, customers get digital approval and easy repayment facilities.

Conclusion

If you take a ₹10 lakh personal loan from SBI, your EMI will depend on the interest rate and tenure. At 12% interest for 3 years, the EMI will be ₹33,237, while for 5 years, the EMI reduces to ₹22,241. However, you’ll need to pay approximately ₹15,000 as processing fee plus additional GST.

The right EMI choice should always be made according to your salary and expenses so that the loan burden doesn’t become too heavy.

Disclaimer: This article is for general information only. The interest rates and charges mentioned are based on August 2025 rates. Banks may change their terms and rates in the future. Before taking any loan, check SBI’s official website or visit a bank branch for complete information.