Festivals are no doubt an important part of our Indian society and it is celebrated with great zeal and fervor across the country. However, the sad thing is that celebrations are becoming expensive day by day. Earlier with less money, festivals were celebrated so beautifully but nowadays it is not that easy as people have to borrow money or take advance from their companies. Keeping this in mind, banks in India have started offering festival loans to people.
State Bank of India, country’s largest lender also provides festival loan to make sure that these special occasions are celebrated in the right way. Besides this, you can also check out SBI Gold Loan scheme that comes with low rate of interest and no hidden charges.
SBI festival loan is basically a type of personal loan, which is offered like any other loan with certain eligibility requirements & other basic criteria.
Features and Benefits of SBI Festival Loan
SBI Festival Loan is introduced to meet the expenses of festivals. Its features and benefits are as follows;
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Offered at competitive rate of interest
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Very low processing charges. It is charged at 1 percent of the loan amount + applicable service tax
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Minimal documentation
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No hidden costs / administrative charges
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No need for a collateral if the bank is convinced of your repayment capacity
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No prepayment or foreclosure charges
It is important to mention that there are many farmers in the country who are already taking benefit of SBI Agriculture Loans.
Eligibility Criteria of Festival Loan
The basic requirements for SBI Festival Loan are;
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Person should be earning a minimum net monthly income of Rs. 3000 or above.
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Your spouse’s income can be clubbed with yours to calculate the loan amount. In this case, they should guarantee the loan as it is taken on joint basis.
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The applicant can be a Government employee with minimum of two years’ service Or self-employed individual with min three years standing/experience Or person having a regular source of income from verifiable sources like Pension & interest from TDRs or NSCs or Government Securities.
What is the amount of loan available in SBI Festival Loan?
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Min loan amount - Rs. 5,000.
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Max loan amount - Rs. 4 times your net monthly income subject to a maximum amount of Rs. 50,000.
Documents Required for SBI Festival Loan
For SBI Festival Loan you must have the following documents;
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Passport size photo
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Official address proof for professionals & self-employed individuals
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Latest salary slips & Form 16 for salaried candidates
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IT returns for the last 2 years for self-employed individuals & professionals
How to Apply for SBI Festival Loan
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There are many ways in which you can apply for SBI Festival Loan but the easiest way is – online. A person can apply on State Bank of India’s official website - https://www.sbi.co.in/ for the loan.
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Fill the application form and upload the required documents.
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You can also track the application status after submitting it.
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Before applying, it is good to use the EMI calculator on the portal to understand the estimated amount of outflow. All you need to do is enter the principal amount of loan & intended duration of loan. This is helpful in better planning for loan repayment.
‘Lack of money cannot stop you from celebrating your favourite festival’……
