Personal Loan for Defence Personnel

Realising the growing need for personal loans among defence personnel, many lenders in India started offering special personal loans for defence personnel and pensioners to help them cater to their financial needs. SBI (State Bank of India), Saraswat Bank, HDFC Bank, PNB (Punjab National Bank) and many other lenders offer personal loans to these individuals.

Below are some popular personal loan schemes for defence personnel from top banks:

SBI Personal Loan for Army Person

SBI offers special personal loans for army persons under the SBI Xpress Credit loan and SBI Quick schemes. Following are the details of the SBI personal loan for defence personnel:

• Rate of interest: SBI personal loan interest rate for defence personnel varies from 10.60% to 13.60% p.a.
• Loan amount: The loan amount for SBI personal loan for army persons varies from Rs. 24,000 to Rs. 20 lakhs.
• Processing fee: SBI offers a 100% waiver on the processing fee on this loan.
• Repayment tenure: The tenure of loan repayment for personal loans for defence personnel in SBI is 6 months to 6 years.
• Prepayment charges: 3% on prepaid amount. There are no prepayment charges if the account is closed from the proceeds of a new loan account within the same scheme.
• Eligibility: 
  • Minimum age should be 21 years.
  • The minimum monthly income should be Rs. 15,000.
  • The EMI/NMI Ratio should be less than 50%.
  • Should have a Salary Account with SBI or other banks.
  • You can also get an SBI personal loan for paramilitary personnel.

HDFC Personal Loan for Defence Personnel

HDFC offers personal loans for defence personnel up to Rs. 40 Lakhs and a repayment tenure of 12 to 60 months. Generally, HDFC personal loan interest rate for defence personnel starts from 10.25% p.a. for other borrowers. However, the interest rate for HDFC personal loans for army personnel can be different as the bank offers preferential pricing on loans for defence personnel.

HDFC personal loans for defence personnel are easy to obtain and require very few documents.

PNB Personal Loan for Defence

PNB offers personal loans for defence personnel up to Rs. 10 lakhs at attractive interest rates starting from 8.45% p.a. and processing fees up to 1% of the loan amount + GST. Currently, the processing fee is waived completely. The repayment tenure is 1 to 5 years and the foreclosure facility can be availed of at zero additional charges.

Till verification of the documents and disbursal of funds, applicants have to be posted at the same location and they also require job confirmation proof from their department head. After receiving the funds, they can repay the loan amount in EMIs from anywhere through the auto debit option.

Large private sector banks including HDFC Bank, ICICI Bank and Axis Bank seem to have finally recognized the important role such employees have in serving the nation and are open to offering various types of Personal Loan products to such individuals. For the men and women serving in these organizations of national importance, there is finally recourse to get funds through the Personal Loan route which is amongst the quicker ways to liquid funds without collateral. It is understood that Personal Loan Interest Rates are being offered at 8.45% p.a. onwards.

Demand for Personal Loans has been growing on the back of rationalization of interest rates, easy availability of such loans from banks and financial institutions, online credit scoring as well as emergence of intermediaries and third-party financial product distributors such as MyMoneyMantra who has reached out the customers from all walks of life.

The reluctance to provide such loans was understood to be based on multiple factors some of which include – frequent transfers, changing banking relationships, low salary (before seventh pay commission).

However, change is in the air, and over the last few months some leading private sector banks have proactively started offering Personal Loan products to employees (mentioned in the table below) serving in Defence, Paramilitary and Railway services.

If you fall under any of the categories mentioned above, you can apply online for personal loan for defence personnelwith MyMoneyMantra to get access to quick funding