FAQ's
State Bank of India, Bahrain provides you with answers to your commonly asked questions. You can click on the various areas of products and services offered by SBI for which you might seek answers to some basic queries.
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General FAQs
Unlike loans against credit card, in a personal loan, it is necessary for the borrower to draw out the entire loan and the loan is repaid by way of fixed monthly installments. In the case of a credit card, the interest is charged based only on the amount utilized.
An Equated Monthly Installment (EMI) is the amount of money that is paid back to the lender on a monthly basis. It is essentially made up of two parts, the principal amount and the interest on the principal amount equally divided across each month in the loan tenure. The EMI is always paid up to the bank or lender on a fixed date each month until the total amount due is paid up during the tenure.
The EMI facility helps the borrower plan his budget. The EMI is calculated taking into account the loan amount, the time frame for repaying the loan and the interest rate on the borrowed sum.
A credit history is basically a record of your past repayments of loans and credit card bills. Also, there is centralalized data available with the BENEFIT Co. where data from all the banks on existing loans and their repayment patterns of their customers are accumulated. Before approving we as a financial institution will have to check your Credit Reference Bureau (CRB) with the BENEFIT Co. on your loan repayment track record.
It definitely has its benefits! A good repayment track record could fetch you a loan much easily without any hassle and if your repayment track has any arrears or defaults then your loan application might even get rejected.
A fixed interest rate remains constant throughout the loan tenure regardless of the market conditions whereas a floating interest rate can decrease or increase depending on market fluctuations
A loan applicant needs to keep a few things in mind when comparing loans. The applicant needs to determine the kind of loan and the amount he wants to apply for. He needs to keep in mind the total cost of the loan, which will be paid up by the end of his loan tenure.
The second step is to understand the terms and conditions under which financial institutions are offering the loan. Finally he needs to evaluate, which loan offer is the best bet for him.
Other factors that you should look out for are customer service levels and the average time the bank takes to process a loan.
Your credit history, current finance rates, competition, market conditions and special offers are among the factors that influence your APR.
Personal Loans FAQs
Personal loan is an all-purpose loan to meet every individual’s needs, which is given in most cases without any kind of security like a car, home, shares etc. It is handy when you have an urgent need for money in a lump sum.
No! A personal loan does not require collateral. Your proof of income will be all that you need along with other mandatory documents for availing the loan.
- Salaried individual’s
- Self-employed employee
a.Self-employed, professionals and small business owners with satisfactory track record of at least 3 years can apply.Salaried who are employed for over 2 year in a confirmed employment contract are also eligible.
b. For a salaried person the salary should be more then BHD 800/- and for self-employed the average monthly turnover of last 6 months to be more then BHD 3,500/-
c. Loan is open for all nationalities
d. Minimum age 21 years
e. Maximum age 60 years (At maturity of loan, the borrower’s age should be not more than 60 years or normal retirement age, whichever is earlier for salaried employee)
For salaried person the maximum loan amount that can be provided is 18 times thenet monthly income (Max BHD 30,000/-).
For self-employed the maximum loan amount that can be provided will be 8% of the average monthly turnover of the last 6 months.
(Subject to EMI/NMI not exceeding 50% & Max loan limit not exceeding BHD 10,000/-)
The minimum loan amount that can be provided is BHD 1000/-.
The minimum loan tenure will be 12months & maximum loan tenure will be 60 months.
No. Typically, you do not have to provide a guarantor.
Takeover of loan is permittedby the Bank but upon Bank’s discretion.
In case of delay in payment of monthly installment, penalty of BHD 7/- + 5 % VAT will be charged per month.
No Prepayment charges
12. How long will it take for the financial institution to contact me after I submit my application?
On receiving the application from duly filled, signed and presented with all the documents we will contact you within three business days to inform you about the status of your application.
The time taken to approve a personal loan depends on the loan amount, but ideally would take a weeks’ time.
Personal loan proceeds are usually paid to the customer via direct credit into his designated nominated account.
Statements are issued at every end of the month but if wish to know the balance in the meantime, simply contact us on 17548033.
Yes, the financial institution will verify all submitted documents and the details provided in your loan application. Your application could be declined in case of any discrepancies.
Since we are insisting that the customer has to transfer his salary to us on availing the loan, the customer has to give us standing instructions to ECS (Electronic Clearing System) where the monthly payment (EMI) will get automatically deducted every month from your bank account. In certain cases where salary transfer is not possible the customer has to issue post-dated cheques (certain cases) for the entire tenure of the loan
All your loan transactions are recorded in a central data bank which is recorded at BENEFIT Co. in their Credit Reference Bureau (CRB). Defaulting on a loan will show up poorly on your credit history and could pose a problem when applying for a loan / credit card in the future.
Co-applicants are also held responsible for repaying the loan. Defaulting on your loan will affect their credit rating as well.
If your loan gets rejected with the bank then it doesn’t reflect in your CRB record, but after you avail your loan and then cancel it, CRB record will be updated.
Yes the bank has the rights to change the interest rate as and when it deems appropriate. The bank may do it at its own sole discretion without customer consent.
All the information you provide is secured by the Bank’s designated officials. Your application will only be reviewed by those parties involved in helping you fund your loan. Once the loan is sanctioned the documents will be kept in the safe locker.
AUTO LOANS FAQs
- Salaried individual’s
- Self-employed employee
a. Self-employed, professionals and small business owners with satisfactory track record of at least 3 years can apply.Salaried who are employed for over 1 year in a confirmed employment contract are also eligible.
b. For a salaried person the salary should be more then 300 BD and for self-employed the average monthly turnover of last 6 months to be more then 5,000BD
c. Loan is open for all nationalities
d. Minimum age 21 years
e. Maximum age 60 years (At maturity of loan, the borrower’s age should be not more than 60years or normal retirement age, whichever is earlier for salaried employee)
Auto loan financing is only offered here for the purchase of a new or used car from a franchised dealer. At the moment we are financing all categories of 4 wheel drives.
For salaried person the maximum loan amount that can be provided is 24 times thenet monthly income.
For self-employed the maximum loan amount that can be provided will be 24 times net monthly income or 2 times net annual income (Subject to EMI / NMI not exceeding 50% and Max. loan limit not exceeding 20,000BD).
Yes, down payment will depend on whether it is a new or used car. For new cars, downpayment should be at least 10% of the vehicle cost and for used cars downpayment should be at least20%of the vehicle cost.
The minimum loan tenure will be for 12months and maximumloan tenure will be for up to 84 months.
Single premium for the same will be added to the loan amount. The premium calculation would depend on the tenure of loan &amount of loan availed.
Yes, takeover of loan is permitted subject to terms and conditions of the bank.
In case of delay in payment of monthly installment, penalty of BHD 7/- + applicable VAT will be charged per month.
No Prepayment charges
Documents that need to be provided for an auto loan differ according to the profile of the applicant as to whether he is salaried or a self-employed individual.
However the standard documents that is usually needed include 2 Passport Photo, CPR, Passport Copy with residence permit (for expatriates), 6 Months Bank statements, CRB Consent form, Assets & Liabilities Declaration, Health Declaration, Vehicle Quotation, Driving License copyand Income Proof.
Income Proof:
a. For Salaried Individuals – Last 3 month’s salary slips, salary transfer letter &assignment of leaving indemnity from Employer (all in original).
b. Self-employed Individuals – CR copy, memorandum & articles of association, latest audited financial report of the company & PDC’s.
13. How long will it take for the financial institution to contact me after I submit my application?
On receiving the application from duly filled, signed and presented with all the documents we will contact you within three business days to inform you about the status of your application.
The time taken to approve a personal loan depends on the loan amount, but ideally would take a weeks’ time.
Statements are issued at every end of the month but if wishto know the balance in the meantime, simply contact us on 17548033.
Yes, the financial institution will verify all submitted documents and the details provided in your loan application. Your application could be declined in case of any discrepancies.
Since we are insisting that the customer has to transfer his salary to us on availing the loan, the customer has to give us standing instructions to ECS (Electronic Clearing System) where the monthly payment (EMI) will get automatically deducted every month from your bank account. In certain cases where salary transfer is not possible the customer has to issue post-dated cheques (certain cases) for the entire tenure of the loan
All your loan transactions are recorded in a central data bank which is recorded at BENEFIT Co. in their Credit Reference Bureau (CRB). Defaulting on a loan will show up poorly on your credit history and could pose a problem when applying for a loan / credit card in the future.
Co-applicants are also held responsible for repaying the loan. Defaulting on your loan will affect their credit rating as well.
If your loan gets rejected with the bank then it doesn’t reflect in your CRB record, but after you avail your loan and then cancel it, CRB record will be updated.
Yes the bank has the rights to change the interest rate as and when it deems appropriate. The bank may do it at its own sole discretion without customer consent.
All the information you provide is secured by the Bank’s designated officials. Your application will only be reviewed by those parties involved in helping you fund your loan. Once the loan is sanctioned the documents will be kept in the safe locker.