SBI Personal Loan Vs EarlySalary Loan: Which One Is Right For You?

Personal Loans


13 October 2020

SBI Personal Loan Vs EarlySalary Loan: Which One Is Right For You?

When it comes to personal loans, instant approval is a characteristic no customer would decline. In fact, such a feature is prioritized. Fortunately, competitive credit markets give us plenty of choices. Based on your needs and requirements as a borrower, you can choose from a plethora of options available with banking institutions. SBI has several personal loan offerings, such as e-tatkal loans, and the more popular Xpress Credit Personal Loan. On the other hand, portals like EarlySalary are changing the game for young professionals seeking quick and convenient loans. These can range from wedding, vacation, home renovation, medical emergency, education, and much more. Let’s look at how SBI’s Xpress Credit Personal Loan compares with EarlySalary’s Personal Loan and which one is more suitable for you!

SBI Personal Loan vs EarlySalary Loan

Eligibility

A personal loan is the most common type of loan, and for 2020, its demand has spiked significantly. One must be eligible to apply for a personal loan, and eligibility criteria differ from lender to lender. Here are the eligibility criteria for SBI’s Xpress Credit Personal Loan and EarlySalary’s Personal Loan.

SBI Xpress Credit Personal Loan: To apply for an SBI Xpress Credit Personal Loan, the following is the eligibility criteria :

  • Individuals must have a salary account with SBI
  • The minimum monthly income must be INR15,000
  • The maximum loan amount is INR 25,00,000
  • The borrower should be between 21 to 58 years of age

EarlySalary Personal Loan: To apply for EarlySalary’s Personal Loan, the following are the eligibility criteria:

  • Individuals must be Indian Residents
  • Minimum monthly income must be INR 20,000 to INR 22,000 depending on the area of residence
  • The borrower should be between 21 to 55 years of age

Minimum Loan Amount

The minimum loan amount is an important factor to consider when applying for a personal loan as it must be in accordance with the reason why you’re taking a loan in the first place. In this case, EarlySalary takes the cake due to a much lower minimum loan amount, which enables young individuals to make quick decisions and only borrows the amount they need, negating the surplus.

SBI Personal Loan: The minimum loan amount for SBI’s Xpress Credit Personal Loan is INR 25,000

EarlySalary Personal Loan: The minimum loan amount for EarlySalary’s Personal Loan is INR 8,000

Interest Rate

As a borrower, you’d want to pick a lender that offers the lowest interest rate while taking out a personal loan. The following are the interest rates for SBI and EarlySalary:

SBI Personal Loan: The interest rate per annum for SBI’s Xpress Credit Personal Loan ranges from 10.50% to 16.40%.

EarlySalary Personal Loan: Since the personal loans provided by Early Salary are usually short term, the monthly interest rate ranges from 2% to 2.5%.

Prepayment Charges

Prepayment charges or a prepayment penalty is the fees or charge that an individual has to pay the lender or bank if they decide to repay the loan before the end of its term. Prepayment charges can be avoided by taking loans from institutions that give out loans without these penalties, such as EarlySalary. 

SBI Personal Loan: The prepayment charges for SBI Xpress Credit Personal Loan are 3% of the prepaid amount

EarlySalary Personal Loan: There are no prepayment charges or penalties if you decide to repay your loan before the end of its term

Process

SBI Personal Loan: Applying for SBI’s Xpress Credit Personal Loan has been simplified through minimum documentation requirements. However, it is not entirely digital and repayment is only through bank transfer from the salaried account.

EarlySalary Personal Loan: Applying for a Personal Loan through EarlySalary is a quick, hassle-free process that is mostly digital. The personal loan can be repaid through different means such as:

  • Auto Payments
  • Net Banking
  • UPI
  • Adding EarlySalary as a beneficiary in your bank account and transferring money

Long Term Advantages

SBI Personal Loan: Long term advantages of taking an SBI Xpress Credit Personal Loan are:

  • SBI claims low processing charges – these are set at 1.5% of your loan amount.
  • SBI offers a  provision for a second loan
  • Subject to eligibility, SBI claims to offers loan up to 20 Lakhs
  • SBI also claims minimum documentation

EarlySalary Personal Loan: The long term advantages of taking an EarlySalary Personal Loan are plenty:

  • Flexible loan amounts, starting from INR 8,000 to INR 5 Lakhs, with very lenient eligibility criteria. So it’s practically possible for you to receive a loan of the maximum amount.
  • A digital process with minimum documentation. Absolutely no paperwork.
  • Pay as you use: Pay interest only on the amount you use from the credit limit given to you
  • Zero repayment charges
  • Flexible tenure, with the option to repay in a tenure ranging from 90 days to 365 days
ParametersEarlySalary LoanSBI Xpress Credit Personal Loan
EligibilitySalaried individual, Indian ResidentMust have a Salary account with SBI
Interest Rate2% to 2.5% per month10.50% to 16.40% p.a.
Borrower’s
Age
21-55 years21-58 years
ProcessShort, quick, digitalPaperwork involved, therefore slower
Pre-Payment ChargesZero
prepayment charges
3% on prepaid amount
Long-Term
Advantages
Flexible tenure, pay as you use, lesser minimum loan amount, digital processProvision for a second loan
Minimum
Loan
INR 8,000INR 15,000

Hence, there are several things to consider before taking out a personal loan, which depends on why you’re taking the loan. 

In today’s fast-paced world, EarlySalary provides individuals with quick loan solutions with instant approvals and exclusive features such as zero repayment fees, to ensure that the process is hassle-free and digital. Be sure to check out the eligibility criteria before applying for any loan, and read through the terms and conditions carefully to choose the most suitable and appropriate personal loan for your needs!

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs! We’re listening all day on:
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