SBI Slashes Personal Loan Processing Fee to 0.5% — Lowest in 3 Years

State Bank of India, the country's largest lender, has announced a significant reduction in personal loan processing fees from 1% to 0.5% for all digital applications. The limited-period offer runs until June 30, 2026.

The reduced fee applies to SBI's Xpress Credit personal loan product, which offers amounts from ₹50,000 to ₹35 lakh at interest rates starting 10.75% per annum. Existing SBI salary account holders get an additional 25 basis point discount.

This move comes as competition among lenders intensifies. HDFC Bank and ICICI Bank have already been offering zero processing fee promotions through fintech platforms. SBI's entry into the fee-reduction war benefits borrowers who can now shop for the best overall deal.

A ₹5 lakh personal loan now costs just ₹2,500 in processing fee with SBI, compared to ₹5,000 earlier. Combined with competitive interest rates, the total cost of borrowing drops meaningfully.

Fintech aggregators like GoCredit allow borrowers to compare processing fees, interest rates, and disbursal times across 40+ lenders — ensuring you find the cheapest option for your profile.

Pro tip: Always compare the APR (Annual Percentage Rate) which includes processing fees, not just the interest rate.