हिंदी में पढ़े
Personal Loans for Government Employees are collateral free loans offered to meet the personal requirements of individuals employed with government sector, with no end usage restriction. Most lenders usually offer lower interest rates to the employees of government sector. PSU banks usually offer these loans to government employees having their salary accounts with them.
Let us have a detailed look on the features, interest rates, eligibility, documentation and application process of personal loans offered to government employees.
Features of Personal Loan for Government Employees
- Collateral free loans– Personal loans offered to government employees are unsecured loans offered against no collateral.
- No end-usage Restriction– Employees of Central/State Government can use the loan proceeds to meet their personal requirements, except for speculation.
- Loan against salary- Most lenders offer personal loans to government employees holding their salary accounts with them. However, the applicant may or may not have a salary account with the bank/NBFC.
- Low Interest Rates- Due to job and income stability, employees of government sector are offered personal loans at preferential interest rates with flexible repayment tenure.
Personal Loan Interest Rates for Government Employees offered by Various Lenders
| Lenders | Interest Rates (p.a.) |
| State Bank of India | 10.30%-15.30% |
| Union Bank of India | 10.35%-11.55% |
| Kotak Mahindra Bank | 10.99% onwards |
| HDFC Bank | 10.90%-24% |
| Bank of Baroda | 10.90%-16.25% |
| Punjab National Bank | 10.50%-16.35% |
Eligibility Criteria of Personal Loan for Government Employees
The personal loan eligibility criteria set by the lenders for government employees planning to avail personal loans is as follows. However, the eligibility criteria may differ across lenders.
- The minimum age of the applicant should be 21 years at the time of loan application and the maximum age of the applicant at the time of loan maturity should be 60 years or retirement age, whichever is higher.
- The applicant should be employed with Central/State Government, Public Sector Undertakings, defence, armed forces, Ministeries or Department under Ministries, officers in All India Services, teaching and non-teaching staff at schools and colleges, etc.
- The minimum net monthly income of the applicant should be Rs 20,000.
- The employee may or may not have a salary account with the bank/NBFC.
- Employees having a minimum work experience of 1 year are eligible for Personal Loan for Government employees.
- Applicants having a CIBIL score of 750 and above usually have higher chances of availing personal loans at lower interest rates.
Documents Required for availing Personal Loan for Government Employees
Lenders require the following set of personal loan documents from the government employees during loan application. However, the required documents may vary from lender to lender.
- ID Proof- Aadhar card, Passport, PAN card, voter ID, Driving License
- Address Proof- Telephone bill, electricity bill, ration card, rent agreement, Aadhar card, Passport, Voter ID, Driving License
- Bank account statement for past 6 months
- Salary slip for last 3 months
How can Government Employees apply for Personal Loans
Government Employees can apply for personal loans in the following ways.
- By logging in to the official website of the bank/NBFC.
- By visiting the bank branch
- Through the mobile application of the lender
Government employees should also visit online financial marketplaces like Paisabazaar and compare the interest rates and other features offered by various lenders. They can also check for pre-approved offers with the lenders with whom they already have a savings/current/FD/loan account or have availed a credit card, and opt for best personal loan offer as per their requirements.
