Search in Indianmoney's WealthPedia

Home Articles Personal Loan For Government Employees

Personal Loan For Government Employees Research Team | Posted On Monday, October 15,2018, 05:35 PM

5.0 / 5 based on 2 User Reviews

Personal Loan For Government Employees



Whether it’s a medical emergency, unexpected house repairs, wedding expenses or minor surgeries, a personal loan for government employees comes in handy to meet such needs. Almost every bank in India offers personal loan schemes. There are some banks that offer special personal loan schemes just for government employees in India. Unlike personal loans offered for individuals and the salaried, the ones offered for government employees come with many benefits like low interest rates, low processing charges, no pre payment penalty, no security loans, minimal documentation and easy repayment options.

Want to know more on Personal Loans? We at will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

You May Also Watch:

Iframe Content

Personal Loan For Government Employees

Eligibility criteria to avail personal loans:

  • The applicant must be a minimum of 21 and a maximum of 65 years.
  • The applicant should have a minimum income of Rs 20,000 a month.
  • Must have 6 months experience in their current job.
  • The CIBIL score of the applicant must be above 700.

Documents required For Personal Loan:

  • Signed application form
  • Age proof: Passport or birth certificate
  • Identity proof: Aadhaar card or voter ID
  • Address proof: Aadhaar card or voter ID
  • Income proof: Salary slip of the last 6 months.

Personal loan interest rates:

The interest rate on personal loans for government employees starts at 11.35% a year. As per the current rates, there are a few banks that offer the lowest rate of interest on personal loans for government employees along with benefits like low processing fees, no processing fees for defense personnel, and low interest rates for public sector bank employees. The rate of interest varies across banks and ranges from 11.35% to 16% a year.

Government entities eligible for special personal loans:

Central government undertakings: In these companies the government enjoys more than 51% stake. The personal loan interest rates offered to employees of central government employees starts from 11.6% a year.

State government undertakings: the rates on personal loan for state government employees and institutes like colleges and universities vary across banks. For employees of the state government, the interest rates start from 11.6% a year.

Maharatna PSUs: Any public sector undertaking that has an annual turnover of more than 20,000 Crores in the last three years and has an annual net worth of 10,000 Crores and can raise investments in the range of Rs 1000 to 5000 Crores are eligible to become Maharatna PSUs. Presently there are 7 Government companies that come under this category. They are BHEL, GAIL, ONGC, NTPC, Coal India, Indian Oil Corporation and Steel Authority of India. The personal loan rates for the employees of the PSUs is different from the rates offered to private sector companies.

Navaratna PSU: The Navaratna PSUs have six distinct parameters. They are net worth, net profit, total manpower cost; cost of services, production cost, capital employed and profit before depreciation. There are 17 companies included as Navaratna PSU’s. The interest rates for personal loans for Navaratna PSU’s start from 11.49%

Public sector banks: public sector banks are those banks where the majority of stake is held with the government.  The shares of the banks are listed on stock exchanges and the government holds more than 50% of shares. There are 21 national banks that are listed under public sector banks. The interest rate for the personal loan varies across banks.

For defense personnel: banks offer special loans to the armed forces, keeping in mind their unmatched contribution to the Nation. Banks offer special rates on personal loans to the defense personnel as they come under the armed forces category. Any individual working for the Indian Navy, the Indian Air force and the Indian Army are eligible for these loans. The eligibility of the loan scheme is linked to the designation and ranks of these individuals. Some banks also extend this scheme to police department employees.  Many banks offer zero processing fees as a part of special benefits to defense personnel. The interest rates for these personal loans start from 15.25% a year.

Calculating EMIs:

The EMIs on your loan depend on the following factors:

  • Amount of loan
  • Rate of interest
  • Tenure

EMI= (P*1)*(1+I) ^N/ [(1+I) ^N-1]


1. P stands for principal amount,

2. I stands for interest and

3. N stands for the number of installments.

SEE ALSO: Get Personal Loans in Emergency Situations

To sum up:

There are many banks in India that offer special personal loans to government employees along with special rates and additional benefits. However, it’s important to check and compare these rates and benefits offered by banks. Let’s take a look at some banks offering credit facility to government employees:

SBI personal loan for government employees:

The State bank of India offers personal loans to government employees under its express credit facility. The bank offers this loan to the central and state government employees. The individuals who want to avail this loan should have a monthly income of Rs 5,000 and can avail a loan up to Rs 15,00,000. The interest rates vary from 10.65% -14.65% and a processing fee of 1% is charged on the quantum of loan sanctioned.

HDFC personal loan for government employees:

The HDFC bank also offers personal loans to government employees of public sector undertakings including the central and the state government employees. The minimum monthly income to avail this loan must be Rs 15,000 and a maximum loan up to Rs 40 lakhs can be availed. The personal loan offered by the bank comes with tenure of 5 years and a processing fee of 1.5% is charged on the loan amount.

Axis bank personal loan for government employees:

Axis bank offers personal loan to government employees including public sector, central and local bodies. The loan can be availed at an interest rate of 15-24%. The individual must have a minimum income of Rs 15,000. The maximum loan that can be availed is Rs 15,00,000 for tenure of 5 years.

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

Be Wise, Get Rich.


What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
Get It now!

This is to inform that Suvision Holdings Pvt Ltd ("") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.