Diwali is the festive season in India. When it comes to festival gifting, the unavailability of ready funds dampens the celebrations sometimes. Now don't postpone your celebrations because of the unavailability of funds. Country's largest lender SBI offers you the facility of Festival Loans to help you meet any kind of festival related expenses.
Here are the important details about SBI's Festival Loans.
The festival loan limit would be determined by the income and repayment capacity of the applicant. The minimum amount of loan is Rs 5000, and the maximum amount of the loan is 4 times your Net Monthly Income, subject to a ceiling of Rs 50,000.
There are some eligibility criteria for availing SBI Festival loans.You will get a Festival Loan if you are:
- An Employee of Govt., PSUs, profit-making public/private limited companies/ institutions, etc. with a minimum of 2 years service or,
- A self-employed person with minimum 3 years standing/experience or A person having a regular source of income from verifiable channels like Pension and interest from TDRs/NSCs/Govt. Securities etc
- You have a net monthly income of Rs.3000 and above.
- Your spouse's income can also be considered in calculating the loan amount provided he/she guarantees the loan or the loan is taken jointly.
Following documents are needed to avail SBI Festival Loan:
- Passport Size Photograph of the applicant
- Proof of official address for self-employed individuals and professionals. This can include shop and establishment certificate/Lease deed/Telephone Bill.
- Latest Salary Slip and Form 16 for the salaried persons IT returns for the last two financial years, in the case of self-employed individuals and professionals.
EMI and prepayment charges
The loan is repayable in up to 12 equated monthly installments. Any prepayment of EMIs in full or in part and closure of account before the end of the term will attract the prepayment charges of 3% on the prepaid amount. No prepayment/ foreclosure charges will be applicable if the account is closed from the proceeds of a new loan account opened under the same scheme.