Government employees can avail of personal loans instantly as there are many leading banks and NBFCs available, known for offering a personal loan to government employees in India. Individuals working in Central & State Government, PSUs, Railways and Defense can get personal loans at lower interest rates with a minimum monthly income of Rs.15,000. Yes, apart from special rates, government employees can also enjoy a lot of other perks and privileges like flexible tenures, minimal processing fees & other charges, fewer documentation , instant approval and the fastest disbursal. Government employment comes with a job and income stability factor which is preferred by the lenders as far as loan repayment is concerned. Thus, it would be easy to get a personal loans for government employees offered by various lenders online.
Personal Loan to Government Employees, 2020: Top Lenders
There are many renowned lenders which offer personal loan to government employees. Know each one of them below.
SBI Personal Loan for Government Employees
State Bank of India offers personal loans to government employees in order to fulfill their varied needs. The bank under its Xpress Credit scheme offers unsecured loans to the employees of Central, State & Quasi-Government along with employees Central PSUs and Profit Making State PSUs.
|Interest Rates||10.50%-14.90% per annum|
|Loan Amount||Rs.25,000-20 lakh|
|Tenure||6 Months to 6 Years|
|Processing Fee||1.50% of the Loan Amount+GST|
|Minimum Monthly Income||Rs.15,000(salaried)|
|Prepayment Charges||Nil-3% of the Principal Outstanding+GST|
|Penal Interest||2% per month on overdue amount for the period of default|
Axis Bank Personal Loan for Government Employees
The bank offers personal loans to salaried professionals, which means being a government you can also avail of Axis bank personal loans online with lots of features and benefits to choosing from.
|Interest Rates||12%-24% per annum|
|Loan Amount||From Rs.50,000-Rs.15 lakh|
|Tenure||Up to 5 Years|
|Processing Fee||1.50%-2.50% of the loan amount+GST|
|Minimum Monthly Income||Rs.15,000|
|Part Payment Charges||Zero|
HDFC Personal Loan for Government Employees
Government employees can apply for a personal loan at HDFC and fulfill their multiple needs with lots of features and benefits. The bank offers this unsecured loan instantly to meet the multiple needs of all.
|Interest Rates||10.75% to 21.30%|
|Loan Amount||Up to Rs.15,00,000|
|Processing Fee||Up to 2.50% of the loan amount|
|Minimum Monthly Income||Rs.15,000|
|Prepayment Charges||2%-4% of principal outstanding|
|Part Pre Payment Charges||2%-4% of part payment amount|
ICICI Personal Loan for Government Employees
The bank offers personal loans to government employees with many features and benefits. One can enjoy his personal loan journey with ICICI bank.
|Interest Rates||11.25% to 22.00% per annum|
|Loan Amount||Up to Rs.20 lakh|
|Processing Fee||Upto 2.25% of loan amount + GST|
|Minimum Monthly Income||Rs.17,500,20,000 &25,000 (Salaried),|
|Prepayment Charges||5% on principal outstanding + GST|
Personal loan Eligibility for Government Employees
- An applicant should be an Indian citizen
- The minimum age of an applicant should be 21 years
- The maximum age of an individual should be 58/60 years
- He/She must be a Permanent Government Salaried Employee with a minimum income of Rs.15,000
- An applicant should have at least 1 year of job stability with the current employer while having a total work experience of 2 years, which varies from bank to bank
- The cibil score of an applicant should be above 700(out of 900)
Documents Required for Government Employees Personal Loan
- Loan Application Form
- 2 Passport size photos
- Salary Slips for last 3 months
- Identity Proof: PAN Card or Driving License or Voter ID Card or Adhaar Card, etc.
- Residence Proof: Driving License/Voter ID Card/Adhaar card, etc.
- Last 3 months Bank Statements
- Employment Proof
- Form 16 of the last 2 years
- Signature Proof
Features and Benefits
Quick Approval: Being a government employee, you can expect the fastest approval. Yes, your personal loan application will be accepted quickly if your eligibility matches with the lender.
Fastest Disbursal: With quick approval comes the fastest disbursal. Yes, as soon as your personal loan application is approved by the lender, the loan amount will be disbursed quickly in your bank account.
Easy Repayments: The personal loan journey of a government employee would be easy as this unsecured loan comes with flexible tenure options. Yes, a borrower can repay his loan with easy monthly installments that are affordable.
Minimal Documents: A personal loan comes with many perks and privileges and minimal documentation is one of them. A borrower simply needs to submit a few documents and you are done.
Maximum Loan Amount: Your personal loan comes with a maximum loan amount of up to Rs.20 lakh. Yes, which means all your financial needs can easily be fulfilled without any hassle.
Online Process: Talking about an online process, it is a seamless process, wherein just a few steps an individual can apply and get the required loan amount. The process is quick, easy and seamless, hence is preferred by many.
Fees and Charges
Talking about fees and charges, a borrower needs to pay certain charges while availing a personal loan. Yes, a borrower needs to pay a one-time processing fee of 1.50%-2% of the loan amount, at the time of availing the loan. While on the other hand, there are other charges such as prepayment/foreclosure charges of up to 5% of the principal outstanding that an applicant needs to bear during his personal loan journey.
How to Apply Online Personal Loan for Government Employees
You just need to apply online for a personal loan as the process is simply easy and quick. With the help of many digital marketplaces such as Quikkloan, applying for a personal loan would be a smooth sail. Yes, with the best of the services like the lowest personal loan interest rate for government employees, the credit assessment, fastest approval, the quickest disbursal, and minimal fees and charges, the personal loan journey at Quikkloan would be a hassle-free experience. In just a few steps, you would be able to get an instant personal loan online.
Know Your EMI Calculations
If you are not sure about your EMIs, use a personal loan EMI calculator online to be sure about your monthly installments. This online device with its well-designed algorithms helps in knowing the EMIs in a hassle-free manner. You simply need to feed: Loan Amount, Tenure and Interest Rate into the device and within a few minutes it will churn out the values for you.
Let’s understand the calculation with the help of an example. Here personal loan is taken for a loan amount of up to Rs.20 lakh at an interest rate of 12% per annum for a tenure of 5 years.
Table Showing EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
|Loan Amount (in Rs.)||Interest Rate(per annum)||Tenure (in Years)||EMI (in Rs.)||Total Interest Amount(in Rs.)||Total Amount=Principal +Interest (in Rs.)|
Table Showing Principal, Interest and Balance Amount
|Year||Principal (in Rs.)||Interest(in Rs.)||Balance Amount(in Rs.)|
Factors Affecting Personal Loan Eligibility of Government Employees
The personal loan eligibility of a government employee increases if he matches the required criteria. Lenders would be more than happy to lend, if an employee is fitted into the points below.
Employment Type: Being a government employee in itself adds more value to your loan application. And, an extra addition will be if the company you work with comes under CAT A or CAT B. Yes, working in a Fortune 100 or 500 government company would be a win-win situation as far as availing a personal loan is concerned.
Income: For a hassle-free personal loan journey, a government employee needs to have a good monthly income. Yes, a minimum monthly income of Rs.15,000 is required in order to become eligible for a personal loan. However, the higher income you have, the better it is for you as it shows easy loan repayments.
Cibil Score: How your three-digit numeric summary be left alone if we are talking about a personal loan. A government should also have a good cibil score, i.e. above 700 out of 900 to have a smooth loan experience. After all, a good score is an indication of fair credit history, which means the lender can trust a borrower as far as loan repayment is concerned.
Company Tie-up: If the company you work with has a tie-up with a lender, which means your salary is credited in the same bank account, it would be easy for you to grab the best personal loan deal. Yes, a regular flow of income is an indication that a lender can trust you when it comes to loan repayment.
Frequently Asked Questions (FAQs)
Q.What is the loan tenure available for personal loans?
A.The loan tenure typically varies from 12 months to 60 months. Depending upon your flexibility, you can choose a tenure and repay the loan.
Q. How much time do banks take to process personal loans?
A.With the advent of technology, it is now very easy to get your personal loan approval. Most banks provide their approval within just a few hours. The loan amount will be disbursed within just one or two days in most cases.
Q. What are the occasions in which personal loans are offered?
A. Banks do not impose any restrictions on how the loan amount can be spent. Hence, you can take a personal loan for any occasion based on your financial requirements. You may use the loan amount for various things like emergency medical needs, weddings, home renovation, vacation, etc.
Q. What is the minimum income required for government employees to apply for a personal loan?
A. A government employee needs to earn a minimum monthly income of Rs.15,000. However, the criteria varies from bank to bank. Thus, it would be advisable to check the same before applying.
Q. Which government employees are eligible to apply for a personal loan?
A. Employees working in Central & State Government Undertakings, State-Owned PSUs, Railways and Defense are eligible to apply for a personal loan.