Personal Loan for Government Employees

• Loan amount: There is no limit on the minimum loan amount; the maximum amount can go up to Rs. 40 Lakhs.
• Rate of interest: The government loan interest rate starts at as low as 8.45% p.a.
• Tenure: The repayment tenure typically ranges from 1 year to 6 years.
• Processing fee: The processing charges on these loans can go up to 2.50% of the loan amount.
• Prepayment charges: You have to pay up to 5% + applicable GST on prepayment, however, some lenders are offering a 100% waiver on the processing fees as of now.
• Collateral: Collateral or security is not required for unsecured loans.

State Bank of India (SBI) Personal Loan for Govt Employees

Permanent/confirmed employees of State and Central Government can avail of SBI personal loans for govt employees up to Rs. 20 Lakhs for tenure up to 6 years under SBI Xpress Credit and SBI Quick Personal Loan schemes. The SBI loan for govt employees can be used for any purpose.

Features

• Loan amount: Up to 24 times net monthly income (NMI) or Rs. 20 lakhs for a term loan or an overdraft facility.
• Eligibility: Indian resident of 21 years or above with a minimum net monthly income of at least Rs. 15,000 and an EMI/NMI ratio of below 50%.
• Tenure: Minimum 6 months and maximum 72 months or remaining service period (whichever is less).
• Interest rate: The interest rate for personal loans for govt employees in SBI is between 10.60% to 13.85% p.a.
• Processing fee: 1.50% of the loan amount (subject to minimum Rs. 1,000 and maximum Rs. 15,000) + applicable GST.
• Prepayment charges: Up to 3%.
• Collateral: No collateral, security, or guarantor is required for this government personal loan.

Axis Bank Personal Loan for Govt Employees

Axis Bank offers up to Rs. 15 Lakhs multipurpose personal loans for government employees including Public Sector Undertakings, Central and Local bodies. The tenure ranges between 12 to 60 months and the interest rate starts from 10.49% p.a.

Features

• Loan amount: Minimum 50,000 and maximum Rs. 15 Lakhs.
• Eligibility: Confirmed government sector employees of PSUs and central/Local bodies aged between 21 years to 60 years and having a minimum net monthly income of at least Rs. 15,000.
• Tenure: Minimum 12 and maximum up to 60 months.
• Interest rate: For this government loan interest rate varies from 10.49% to 21% p.a.
• Processing fee: Minimum Rs. 3,999.
• Prepayment charges: 2% to 5% + applicable GST.
• Collateral: No collateral or security is required.

Union Bank of India Personal Loan for Govt Employees

Union Bank of India provides a special personal loan for government employees (SRLGE) scheme. You can get up to Rs. 15 Lakhs under this scheme for a tenure of up to 60 months. No processing fee is involved and the interest rate starts from 9.30% p.a.

Features

• Loan amount: There is no limit on the minimum loan amount and the maximum quantum of loan is Rs. 15 Lakhs.
• Eligibility: Permanent/confirmed employees of State/Central government organizations, PSUs, defence, ministries, AIS officers, government teaching and non-teaching staff, aged at least 18 years and maximum 60 years.
• Tenure: Maximum up to 5 years.
• Interest rate: The interest rate is attractive and varies from 9.30% to 13.40% p.a.
• Processing fee: A Nil processing fee is applied to this govt employee loan scheme.
• Prepayment charges: No prepayment charges are involved.
• Collateral: The spouse of the applicant must join as a co-applicant. If the borrower is single/widow/divorcee, a personal guarantee of one of the co-employees with sufficient means is required.

Punjab National Bank (PNB) Personal Loan for Govt Employees

PNB offers a government employee loan scheme named Personal Loan Scheme for the Public. Under this scheme, government employees drawing a salary from PNB can get a loan of up to Rs. 10 Lakhs for a tenure of up to 60 months, an interest rate starting at just 8.45% p.a.

Features

• Loan amount: Up to 15 times of Gross Monthly Salary, subject to a maximum of Rs. 10 Lakhs.
• Eligibility: Confirmed/ permanent employees of Central/State government, PSUs, and LIC agents with a minimum of 2 years of service and drawing salary from PNB.
• Tenure: The entire loan has to be repaid within the remaining period of service or in a maximum of 60 EMIs.
• Interest rate: The interest rate for this govt personal loan is the lowest and ranges from 8.45% to 14.50% p.a.
• Processing fee: PNB offers a full waiver of processing fees and documentation charges from 01.09.2021 to 31.12.2021.
• Prepayment charges: No prepayment charges were levied.
• Collateral: A suitable third-party guarantee is acceptable to the bank.

HDFC Bank Personal Loan for Govt Employees

HDFC Bank offers personal loans for government employees online for medical emergencies, travel, weddings, home renovations, and other requirements. Employees of PSUs, including central, state, and local bodies can get up to Rs. 40 Lakhs loan against salary with little or no documentation for 6 years tenure.

Features

• Loan amount: Up to a maximum of Rs. 40 Lakhs.
• Eligibility: Salaried employees of PSUs (public sector undertakings), including central, state, and local bodies aged between 21 to 60 years and earning at least Rs. 25,000 monthly income.
• Tenure: The borrowed amount for this central govt employee loan scheme can be repaid in a maximum tenure of 6 years.
• Interest rate: The interest rate ranges from 10.50% to 21% p.a.
• Processing fee: Up to 2.50% of the loan amount, minimum Rs. 2,999 and maximum Rs. 25,000.
• Prepayment charges: Nil charges on foreclosure for salaried after 12 EMI payments and 2% to 4% for part prepayment.
• Collateral: No collateral is required as it is a collateral-free personal loan.

Below are the details of personal loan eligibility for government employees:

• Applicants should be aged at least 18 years when applying for the loan.
• The maximum age should not be above 60 years when the loan matures.
• The minimum net monthly income required is Rs. 15,000.
• Applicants should be confirmed government sector employees working with PSUs, Central or Local government bodies, and government colleges or institutions for at least the last 2 years.
• The EMI to NMI ratio after consolidating all the present commitments including the EMI of the proposed loan should not exceed 50%.
• It is tough to find personal loans for government employees with bad credit, so a credit score of 700 or above is required by most lenders.

Below are the documentation requirement details for personal loan govt bank:

• Personal Loan application form (duly filled and signed), along with 2 recent coloured passport-sized photographs.
• Income Tax Returns for the past 2 years.
• KYC documents, such as PAN card, aadhar card, driving license, passport, etc.
• Proof of residence, such as aadhar card, driving license, passport, utility bills, etc.
• Proof of income, such as salary slips, salary certificates, bank statements, etc. 
• Defence personnel should submit a copy of the identity card issued by the department.

MyMoneyMantra has made it easier to avail the government personal loan online. All you need to do is to:

• Furnish the required details online and upload soft copies of the necessary documents.
• If you satisfy the eligibility criteria, you will get instant approval.
• The loan will be disbursed within less than 2 days of approval.
• The loan proceeds will be credited directly into your bank account.