Government or PSU employees, especially those who have retired have to be very good at savings. In order to meet their day to day expenses sufficient saving is the key especially when he/she is the only earning person in the family or when there is no one to support financially. However life is uncertain and any unfortunate event or emergency can take place anytime and can take a hit on your pocket. Although personal saving can be utilized in such scenarios but it may not be able to fulfill the demand always. And even if it does, you may not be able to meet the future financials objectives.
And at such difficult times like medical emergencies, marriage of children etc. taking finance from banks help. There are many financials offering personal loan for government employees or PSU. Although such loans are expensive but still it helps in attaining the temporary money crunch. Check out personal loan for low salaried individuals.
Here is the list of banks offering personal loan for PSU or central/state government employees. The table also shows loan amount, interest rate and income required.
|Name of Bank||Maximum Loan Amount (INR)||Interest Rate %||Monthly Income Required|
|Oriental Bank of Commerce||For govt. employees: 5,00,000|
For pensioners: 2,00,000
|Bank of India||500000||4.00% + BSS (0.30%) above 1 Year MCLR||NA|
|Axis Bank||1500000||15.50% to 24%||15000+|
|State Bank of India||1500000||12.45% - 12.95%||7500+|
|Bank of Baroda||1000000||One year MCLR +SP+3.00% to One year MCLR +SP+ 6.00%||NA|
|State Bank of Travancore - Suvidha Loan||36 times the net monthly income||12.20-12.70||20000|
|State Bank of Bikaner & Jaipur||1500000||11.85 + one year MCLR||9000|
|Punjab National Bank||1000000||MCLR+3.10%||NA|
|Central Bank of India||1000000||MCLR(12m) + 3.00%|
There are many other banks offering personal loan to state/central government employees or from public sector undertakings (PSUs). But above listed ones are the top most banks.
Note: Interest rates keep changing from time to time. So check with bank for latest rates.
Which working class individuals fall under the category of government or pensioners?
All central and state government employees falling under the following categories
- University or college teachers
- Permanent and employees who are confirmed
- Age not greater than 65 years. Age criteria varies for each bank.
Eligibility criteria for personal loan:
Not every application guarantees loan as banks carry out very strict financial history check of the applicant. The main purpose is to evaluate credit worthiness of the individual so that risks involved can be avoided beforehand. Here are the most common eligibility criteria required:
- Income: Your earning plays the most important role. The loan amount and interest rate approval is dependent on this.
- Most banks ask for salary account with their bank.
- Credit history: This is the most important factor in any type of loan or cedit card application. This is the only way using which banks get the whole financial transaction history of the applicant. A poor credit history is the indicator of default and banks can reject the application in such cases. Read more on loans for individuals with poor credit score.
- Applicant should be a permanent employee
- Other criteria include age, employment history – years been with the current organisation, documentation, & others.
Other options to get personal loan are:
- Peer to peer lenders
- Co-operative banks
- Secured loans either against FD or LIC policy
- Private money lenders
- Against gold