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Government Employee Personal Loan
Many lenders provide easy and quick personal loans to government employees. Lenders such as HDFC Bank, Axis Bank, State Bank of India, and Oriental Bank of Commerce provide loans at affordable interest rates. Employees working in any public sector unit (PSU), government schools and colleges, and central and state government departments are eligible for this personal loan.If you are a government employee, apply for a personal loan on CreditMantri. We provide a hassle-free and simple loan application process. You can also do a free credit score check and download a free credit report.About Government Employee Personal Loan
- Government Employee Personal Loans Features and Benefits
- Government Employee Personal Loans Comparison of Top Lenders
- Government Employee Personal Loan Eligibility
- Government Employee Personal Loan Documents
- Things To Consider Before Applying For A Government Employee Personal Loan
- Conclusion
- FAQs of Government Employee Personal Loan
Government Employee Personal Loans Features and Benefits
The common features of a government employee personal loan are:
- Competitive interest rates
- Flexible repayment tenure from 12 months to 72 months
- Multipurpose loans or no end usage restriction
- Collateral free
- No minimum loan amount
- The maximum loan amount is based on the repayment capacity
Government Employee Personal Loans Comparison of Top Lenders
Bank | Interest Rate | Maximum Loan Amount | Maximum Loan Tenure |
|---|---|---|---|
9.60% p.a. | 20 Lakhs | Upto 6 years | |
11.25% | 40 Lakhs | Upto 5 years | |
Starting from 10.49% p.a. | 40 Lakhs | Upto 5 years | |
Starts from 10.75% p.a. | 40 Lakhs | Upto 5 years | |
Starts from 10.49% p.a. | 1 Crore | Upto 5 years | |
Starts from 10.99% p.a. | 35 Lakhs | Upto 7 years | |
Starts from 10.49% p.a. | 50 Lakhs | Upto 6 years |
Government Employee Personal Loan Eligibility
Criteria | Notes |
|---|---|
Age | Minimum 21 years to apply for the loan and maximum 60 years at the time of loan maturity |
Profession | Employees working in any public sector unit (PSU), government schools and colleges, and central and state government departments. |
Income | At least Rs. 15,000 per month. Some banks will provide relaxations if you have an account with them |
Financial Stability | The applicant must not have too many debts on hand already. The applicant must not take home less than 30% of the gross income after paying all the loan EMIs. |
Job Tenure | For government employees who have been in the job for at least one year, getting a loan is easy. However, for people who have just entered government service, it depends on the lender. |
Government Employee Personal Loan Documents
Type of Document | Documents |
|---|---|
Identity Proof | Either one of the following:
|
Address Proof | Either one of the following:
|
Proof of Employment | Letter of employment that includes the employee’s dates of employment, job title, and salary. |
Salary Slips | At least for the last 3 months |
Bank Statement | Banks statements of the past 6 months |
Signature Proof Verification | Passport, PAN Card, etc. |
Things To Consider Before Applying For A Government Employee Personal Loan
- Compare Interest Rates From Various Lenders: You need to check out the interest rates offered by various lenders before choosing the personal loan product
- Additional Discounts for Existing Bank Accounts: If you already have an existing bank account, you can get additional discounts and offers. You can check with your bank regarding offers available for you.
- Pre-approved Loans: Pre-approved loans are offered to existing customers of the bank. They are approved quickly and the money is disbursed instantly.
- Charges on Personal Loans Varies Across Banks: When you take a personal loan, you must include the various charges on personal loans in the loan cost. In addition to the interest rate, you must also feature these costs while computing the loan cost.
- Check If You Can Pay The EMI Amount: Check if you can fit in the EMI amount within the monthly budget. You should do this before you apply for a loan.
Conclusion
Government employees can get personal loans easily. Several lenders will offer personal loans to them at preferential interest rates. However, it may not be based just on income but also on other personal loan eligibility criteria.
FAQs of Government Employee Personal Loan
1. Can government employees take personal loans?
Yes, government employees can get personal loans easily. It is available to employees of public sector undertakings (PSUs), including central, state, and local bodies.
2. How much personal loan can a government employee obtain?
This will depend on various factors such as monthly income, credit score, nature of your job, work experience, and other factors. Also, different lenders set different eligibility criteria.
3. What is the time taken by banks to process personal loans?
Most banks approve personal loan applications within just a few hours since the process is completely digital. The loan amount gets disbursed in one or two days in most cases.
4. How can I decrease the EMI payable for a personal loan?
If you have a good relationship and a good credit history with the bank where you already have an account, you can negotiate for a better interest rate or a discount. You can also reduce the EMI for a personal loan by increasing or maintaining a credit score above 750.
5. Is it fine for retired government employees to apply for personal loans?
Most banks give personal loans to individuals who are still employed. So, it may be a little tough for retired employees to get personal loans. However, there are lenders who give loans to retired employees. You can check with your lender for personal loan eligibility criteria and determine whether it matches your requirement.
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