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Tata Capital > Blog > Personal Use Loan > What is Xpress credit loan? – Personal Loan Government Scheme

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What is Xpress credit loan? – Personal Loan Government Scheme

What is Xpress credit loan? – Personal Loan Government Scheme

If you’re hesitating to plan that long-awaited family holiday, renovate your house or are stressing about how you will meet your medical expenditure, it’s time to take a sigh of relief. Because there is a way, you can do all that without dipping into your savings.

State Bank of India (SBI) offers the Xpress credit loan scheme. This scheme allows you to take out a loan for any big-ticket purchase and keep your savings away for a rainy day. Whatever your need, this personal loan can help you with it.

And so, here we’ll discuss everything you need to know about this government personal loan scheme. Let’s begin!

Understanding the Meaning of Xpress Credit Loan

Xpress Credit Loan is a personal loan scheme offered by the State Bank of India for salaried individuals, including government employees. Under this scheme, salaried individuals can get instant loans to meet their financial needs. Loans ranging from Rs 25,000 to Rs 20 Lakh, and up to Rs 35 Lakh in some cases, can be availed under this scheme, with loan tenures of six months to six years.  

Xpress Credit Loan, meaning SBI’s quick, paperless personal loan specifically designed for salaried individuals, has features like attractive interest rates, minimal documentation and low processing fees. The application process is easy and fully digitised, ensuring quick sanction and disbursement of funds. 

Eligibility Criteria

The Xpress credit loan can be applied for by individuals meeting the following eligibility criteria:

  • Individuals with an SBI salary account and a minimum salary of Rs 15,000
  • Individuals working with central, state, quasi-government, public sector undertakings (PSUs), reputed educational institutions, and selected corporates.
  • Individuals with an EMI/NMI ratio of less than 50%

Also, read – Top Government Schemes for Startups and MSMEs in India

How to apply

If you meet the eligibility criteria, the next step is filling up the application form. You can download this from SBI’s official website or collect it from your nearest SBI bank branch. The application form requires details like name, age, address, income, work profile and the like. Ensure all details are correct and legibly written to get your loan application approved quickly. 

To benefit from this govt. personal loan scheme, you will need to accompany your application form with the required documents. 

Salaried employees need to submit the following documents with the application form: 

  • Passport-size photographs
  • As proof of identity- Aadhaar card, PAN card, driving licence, voter identity card, passport 
  • As proof of income- bank account statement, salary slips, ITR, Form 16 
  • As proof of address- Aadhaar card, ration card, passport, bank account statement, driving licence, electricity bill, telephone bill, sales deed/ property purchase agreement
  • Letter of authority addressed to disbursing authority
  • Copy of identity card issued by the employer organisation
  • Letter of authority from the authority responsible for disbursing salary

Individuals with a Defence Salary Package (DSP), Paramilitary Salary Package (PMSP) and Indian Coast Guard Salary Package (ICGSP) the following documents are to be submitted:

  • Passport-size photographs
  • AS proof of identity- Aadhaar card, PAN card, voter identity card, driving licence
  • As proof of address- passport, telephone bill, voter identity card, electricity bills
  • Copy of salary slip for the preceding six months
  • Bank statement for the preceding six months for the account where the salary has been credited.

Also, read – Government Schemes for Women Entrepreneurs in India

Documents Required for Xpress Credit Loan

For the Xpress Credit loan, a person needs to submit a set of documents that generally include identity proof, address proof, income proof, and other verification documents, along with an application form. In case of salaried employees, the Xpress Credit Loan documents required are: 

  • Proof of identity
  • Proof of address 
  • Latest salary slips (at least 3 months)
  • Bank account statement showing salary credit
  • Copy of ID card issued by employer
  • Proof of income: Form 16, recent Income Tax Returns (ITR)
  • Letter of authority (where applicable, as per employer/organisation norms)

Additional documents required in case of individuals with special salary packages (DSP, PMSP, ICGSP) are salary slips for last 6 months and bank statement of account where salary is credited for the same duration. This is a slightly altered set with emphasis on longer salary/bank statement histories.

Also, read – All About Government Business Loan Schemes

Xpress Credit Loan Interest Rates and Tenure

The Xpress credit loan tenure ranges from six months to six years (or until retirement, whichever is earlier).  The Xpress Credit Loan interest rates vary based on your employment category. Look at the table below for a better understanding. 

Applicant CategoryInterest Rate (p.a.)Maximum Loan Amount
Defense and Central Armed Police11.15% – 12.65%Up to Rs 35 lakh
Central/State Govt and PSU11.55% – 14.05%Up to Rs 20 lakh
Corporate Salaried12.55% – 14.55%Up to Rs 20 lakh

Additional charges

When applying for an Xpress credit loan, certain additional fees are also levied by SBI. These are as follows. 

  • Processing fees

SBI charges 1% of the loan amount and the applicable service tax as a processing fee under the instant credit scheme. 

  • Penal interest

There is no penal interest for loans amounting to Rs 25,000 and below. However, for loan amounts more than Rs 25,000, individuals will be charged a penal interest where the discrepancy exceeds the EMI amount and for more than a month.  

The penal interest will be 2% p.a., in addition to the interest rate charged for the loan. However, the penal interest will not be levied where a portion of the instalment or EMI remains overdue. 

  • Foreclosure charges

In case the borrower wants to close the account before the term ends, they will have to pay 3% as repayment charges. It will be charged on the prepaid, irrespective of whether the borrower repays the EMI in part or complete before the end of the term. 

However, this charge can be avoided if the borrower uses the proceeds of a new loan granted under this scheme. 

Also, read – 5 Reasons Why Investing in Government Housing Schemes is a Smart Option

Comparing Xpress Credit with Other Personal Loan Options

Since borrowers often evaluate multiple lenders before applying for a personal loan, here’s a side-by-side comparison of Xpress Credit loan vs personal loan alternatives for better clarity: 

FeatureSBI Xpress CreditHDFC Bank Personal LoanTata Capital Personal Loan
Interest Rate11.15% to 14.55% (depending on employment type)10.85% to 24% 10.99% to 29.99% p.a
Loan Amount RangeRs 25,000 to Rs 20 lakh Rs 50,000 to Rs 40 lakh Rs 40,000 to Rs 35 lakh
Loan Tenure / Repayment Period6 months to 72 months12 to 60 months 12 to 72 months
Processing Fee / Charges1% of the loan amount + taxes. Up to Rs 6,500 + GST Up to 3.5% of loan amount + GST
Pre-closure / Foreclosure Penalty3% of prepaid amount (varies by category)2% to 4% of outstanding principal (after first 12 EMIs)Part Prepayment: No charge up to 25% disproportioned principal; 6.5% (first 12 months), 4.5% (after)
Foreclosure: 6.5% (within 12 months), 4.5% (after 12 months)

Managing Your Xpress Credit Loan Effectively: Tips and Best Practices

Learning how to manage Xpress Credit loan can seem overwhelming at first, but with better financial planning it can become easier. Some practical ways in which you can avoid Xpress Credit loan mistakes are: 

  • Affordable repayment: Choose a tenure that keeps monthly payments affordable and set up automatic debits to avoid missed instalments. 
  • Regular review of loan statements: Keep a track of the repayment on SBI’s digital platforms to check progress or spot any discrepancies.  
  • Part-payments: When you have surplus income, use it to make part-payments which will help to reduce interest and shorten the loan term. However, keep in mind the prepayment charges applicable. 
  • Keep an emergency fund: It can be used to cover a few EMIs in case of financial uncertainty. 
  • Avoid taking on multiple loans: Multiple loans at once can strain your budget. 

To sum up

The Xpress credit loan’s meaning is an instant loan to meet your financial needs immediately. By following the application procedure and submitting the required documents, you can receive your personal loans within days. 

Personal loans are a great way to finance large purchases, emergency expenses, debt consolidation, etc. And we at Tata Capital can also help you with that. By offering personal loans at attractive interest rates, we help you live today without sacrificing tomorrow.  

To learn more, visit our website and apply for a loan today!

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FAQs

What is Xpress Credit Loan?

Xpress credit loan is a personal loan that SBI offers to eligible salaried customers maintaining a salary account with the bank. It involves quick approval, minimal paperwork, attractive interest rates and flexible repayment options.

Who is eligible for Xpress Credit Loan?

 

Eligibility criteria for Xpress Credit Loan mainly includes salaried individuals with a minimum salary of Rs 15000, having a regular salary account in SBI. This covers Central and State Government employees, defence personnel, PSU staff, and corporate employees. Applicants must also have an EMI/NMI ratio less than 50%.

What are the typical interest rates for Xpress Credit Loan?

 

Interest rates generally fall within a competitive range and vary by employer category, income, and credit profile. Government and PSU employees usually receive more favourable rates, while corporate salaried individuals may be charged slightly higher.

Can I apply for Xpress Credit Loan online?

 

Yes. Eligible customers can apply through SBI’s YONO app, net banking portal, or the bank’s official website. The online process is quick, paper-light, and allows instant eligibility checks, making it convenient for existing salary account holders.

What documents are required for Xpress Credit Loan application?

 

The applicants can download the application form from SBI’s official website and attach the required documents, which usually include identity proof, address proof, recent salary slips, bank statements, and employment details.

Is Xpress Credit Loan a government scheme?

 

Xpress Credit Loan is a personal loan product offered by the State Bank of India to its eligible salaried customers. However, government employees are offered better interest rates.

How does Xpress Credit Loan work?

 

SBI evaluates your salary account and creditworthiness, sanctions the loan, and disburses the amount. You repay through monthly EMIs over 6 months to 6 years.

What is the maximum loan amount and tenure for Xpress Credit Loan?

 

The maximum loan amount for an Xpress credit loan is Rs 20 Lakh, and the maximum tenure is 6 years.

What are the key benefits of Xpress Credit Loan for government employees?

 

Xpress Credit Loan is extremely beneficial for government employees, as it offers personal loans at more favourable interest rates, given the stability of their income, without the need for security or a guarantor.

What are the charges involved in Xpress Credit Loan?

The charges involved in Xpress Credit loan are:

 

  • Processing fee: 1% of the loan amount + GST.

  • Penal interest: 2% per month on overdue amount. 

  • Foreclosure: 3% on the prepaid amount.

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