Personal Loan for Teachers: Min. Income Rs.5000, Loan Amt. 5 Lakh
|Name of Bank/Lender||Maximum Loan Limit||Minimum Monthly Income Required|
|Indian School Finance Company Private Limited||Rs. 1 Lac – Rs. 5 Lac||Rs. 5,000|
|Canara Bank||Rs. 2 Lacs||Rs. 10,000|
|Axis Bank||NA||Rs. 15,000|
|State Bank of India (Xpress Credit Personal Loan)||Rs. 15 Lacs||Rs. 5,000|
|Allahabad Bank||Rs. 2 Lacs||NA|
|Punjab National Bank||Rs. 5 Lakh||Rs. 10,000 to Rs. 15,000|
|HDFC Bank||NA||Rs. 15,000|
|Bank of Baroda||Rs. 50, 000 – Rs. 5 Lakh||Rs. 6,500|
|Bangia Gramin Vikash Bank||Rs. 1 Lac – Rs. 3 Lac||Rs. 12, 500 – Rs. 17, 000|
|Karnataka Bank||Rs. 5 Lakh||Rs. 10,000|
|Dena Bank||Rs. 1 Lakh||Rs. 15,000|
|Indian Overseas Bank||Rs. 5 Lakh||Rs. 5,000|
|UCO Bank||Rs. 10 Lakh||Rs. 10,000|
|Central Bank of India||Rs. 5 Lakh||NA|
|Oriental Bank of Commerce||Rs. 3 Lakh||Rs. 6,000|
- Most of these lenders offer loan only to permanent teachers
- Salary account with the respective bank is must
- If retired, individual should be drawing pension from the applied bank
- Employees of only schools, colleges, universities
- Employees of central, local and state government only
Other cheaper options for teachers to get personal loan:Against securities: If the teacher has LIC policy, mutual funds, NSC or any other security; then he/she can pledge these securities. Instead of prematurely exiting or selling them, teacher can get personal loan against these. Compared to normal personal loan, such type of credit is worth recommended due to low interest rate and minimum documentation and not a very strict eligibility criteria. Against fixed deposit: Another option to get loan is against FD. This is offered by most of the banks in India. And the interest rate offered is 2%-3% more than the FD interest rate. Again this type of loan is cheaper than normal personal loan. Against Gold Jewelry: If any individual has jewelry and is in need of personal loan then they can pledge their ornaments as security with companies like Muthoot Finance, Manappuram Finance, and others. Even banks offer gold loans. In return, these companies will offer loan, which is at a lower interest rate due to the pledged security in the form of physical gold.
This article has been written by Chandra Mehta.
Chandra is a seasoned banker with 35+ years of experience in banking and financial services industry. He’s a retired banker and has served as Chief Manager and Assistant Vice President in State Bank of India/or its subsidiaries.
He has authored many articles on this site (allonmoney.com).