Government Employees 2018-09-21T13:57:20+00:00
Give Details

Personal Loan for Government Employees

An employment with the Government of India is a prestigious appointment; it facilitates a chance to serve the Nation & contribute towards its progress & security.

A career with the Indian government is also sought after, as it provides an individual with the stability & security of a life time, along with the prestige & fulfilment of serving your motherland.  A lucrative pay structure with provisions for various benefits & a handsome pension plan after retirement is guaranteed.

Therefore every youth dreams of making a breakthrough, of passing the exam for selection in the central or state level.

The monthly income always a surety the government employee is ready to meet all his monthly obligations. Leading Banks & NBFC’s are willing to give Personal Loans to candidates who are Government employees; they are treated under a special category for processing of their personal loans.

With the hike in the salary & pension of all Government employees, the spending power & lifestyle demands have increased manifold; a Personal Loan is easily available to fulfil requirement for funds when needed.

A Personal Loan can be used for following reasons

A personal loan can be used for any personal requirement, some major reasons for which a Personal loan can be used are as per follows:

  • To meet expenditures for a Wedding or any other Family function.

  • For finance needed for the renovation or refurbishing of your home.

  • To pay for the education expenses of self or family.

  • Finance for use in Emergencies & medical expenses.

  • Personal Loan funds can be used to go on a family vacation.

Rate Chart of Central/State Goverment

Loan Provider Net Salary Rate of Interest Processing fees TENURE
HDFC BANK >=50K 14.75% 1.75% 12 TO 60 MONTHS
>=35k 15% 2% 12 TO 60 MONTHS
20K-35K 16.75% 2% 12 TO 60 MONTHS
ICICI BANK >=35K 15.75% 2% 12 TO 60 MONTHS
20K-35K 17.75% 2% 12 TO 60 MONTHS
CITI BANK >=35K 13.99% 1% 12 TO 60 MONTHS
< 35K 16% 2% 12 TO 60 MONTHS
Axis BANK >=20K 15-18% 2% 12 TO 60 MONTHS
>=75K 11.25% 1% 12 TO 60 MONTHS
Axis BANK
(Salary Account Holder)
>=50k 12.75% 1.50% 12 TO 60 MONTHS
>=35K 12.49% 1.50% 12 TO 60 MONTHS
<35K 14.99% 1.50% 12 TO 60 MONTHS
*Disclaimer : Rates are liable to change as per revision by the Bank.

Benefits of a Personal Loan

Funds can be obtained via a personal loan without any guarantee or collateral. The Loan amount is given to the applicant solely on the basis of the profile & documents proving the income.

A personal loan has a quick turnaround time. The amount needed can be secured quickly without any hassles. A Personal loan application can be processed within a week.

A Personal loan can be repaid in easy monthly instalments. The ECS option makes it convenient for the payment transfer. The tenure for the Personal Loan can be fixed as per the repayment capacity of the applicant so that paying back the loan amount is not a burden.

The Rate of Interest & processing fees charged will be at a minimal, the Government sector being a prized one Banks will offer competitive rates to lure applicants.

The Eligibility Criteria required of a Personal Loan for Government Employees

  • The Age of the applicant should be above 21 years, the loan should be completed by the age of 65 years.

  • Under the pensioners plan the loan is valid for 5 years post retirement.

  • The Salary should be a minimum of 20, 00/-.The amount being transferred to the Salary account monthly.

  • The applicant should have been gainfully employed in the Government sector for a minimum period of 12 months.

  • The personal loan applicant should have a clear Credit history if he has availed any loans or credit cards.

Prominent features of a personal loan for Government category

  • Personal loans are offered starting from ₹ 50.000/- up to ₹ 30 lakhs.
  • The tenure for which the Personal Loan is issued is from12 months to 60 months.

  • CIBIL score should be above 700 points.

  • Category D government employee only eligible if they have a successful alternate secure/unsecure Loan running.

Employment under the Government is listed as per the following

Public sector Undertakings (PSUs) or CPSEs

Leading PSUs are the prime focus for all Banks; they are fast growing companies with high profit turnovers. Employees of these companies are offered increased loan amounts with best in class interest rates.
The Department of Public Enterprises issues guidelines for categorization in category I & II based on their financial performance, net worth, revenue & profit as MAHARATNA /NAVRATNA/MINIRATNA.

MAHARATNA

The status of MAHARATNA is granted to a company as per the following criteria.

  • The company should be in the NAVRATNA category.

  • It should be listed on the stock exchange.

  • The average annual turnover should be 25000 crore ₹ for the last 3 years.

  • The average net worth should be 15000 crore ₹ for the last 3 years.

  • The company should net an average annual profit of 5000 crore after paying tax for the last 3 years.

  • The company should have a considerable Global presence.

NAVRATNA

To be granted the status of a NAVRATNA a PSU should meet the following criteria.

  • The company should be a MINIRATNA company as a category 1 & Schedule A PSU.

  • The rating of excellent or very good obtained under the Memorandum of Understanding system for three of the last five years.

A composite score of 60 or above in the six performance parameters selected namely:

  • Net profit to net worth

  • Total cost of Manpower for production & services.

  • Profit before depreciation, interest & taxes to capital employed.

  • Profit before interest & taxes to turnover.

  • Earnings per share and inter sectoral performance.

MINIRATNA

A MINIRATNA PSU status is granted to a Central public sector enterprise (CPSE) eligible as with the following criteria
The CPSE which has made profits for the past three years & has a positive net worth.

  • Central /State Government Employees.

  • All staff directly employed with Central Ministries & State Ministry is included in this category. State sponsored Universities, colleges, hospitals & Institutes are given status of government employees.

  • Salary above 35k is included in GA category.

  • Salary below 35k is GB Category

  • Below 25 k is GC.

  • The ROI & loan amount are as per the category.

Rate Chart:

Loan Provider Net Salary Rate of Interest Processing fees TENURE
HDFC BANK >=75K 10.99% 1.50% 12 TO 60 MONTHS
> =50k 11.99% 1.50% 12 TO 60 MONTHS
>=35k 13.99% 1.50% 12 TO 60 MONTHS
ICICI BANK >=75K 11.29% 1.50% 12 TO 60 MONTHS
35k -75k 11.50% 1.50% 12 TO 60 MONTHS
>=35k 13.50% 1.50% 12 TO 60 MONTHS
CITI BANK >=25K 10.99% to 15.99% 1.50% 12 TO 60 MONTHS
Axis BANK >=25K 11.25%-18% 1.50% 12 TO 60 MONTHS

Public Sector Banks

The government of India holds majority stakes in the Public Sector Banks, (i.e. more than 50%)
Hence these Banks are included in Government category for sourcing of Personal Loans. There are a total of 21 PSBs in India.
Discounted rates of Interest are offered as per offers for government employees.

Public sector banks are:

  • Allahabad Bank

  • Andhra Bank

  • Bank of India

  • Bank of Baroda

  • Bank of Maharashtra

  • Canara Bank

  • Central Bank of India

  • Corporation Bank

  • Dena Bank

  • Indian Bank

  • Indian Overseas Bank

  • Oriental Bank of Commerce

  • Punjab & Sindh Bank

  • Punjab National Bank

  • Syndicate Bank

  • UCO Bank

  • Union Bank of India

  • United Bank of India

  • Vijaya Bank

State Bank of India (SBI) and Industrial Development Bank of India (IDBI) Bank often mentioned in this list are regarded as PSUs and not as nationalised banks themselves.

Rate Chart:

Loan Provider Net Salary Rate of Interest Processing fees TENURE
HDFC BANK >=35K 15.75% 2% 12 TO 60 MONTHS
20K-35K 17.75% 2% 12 TO 60 MONTHS
ICICI BANK >=50K 13.25% 1.49% 12 TO 60 MONTHS
35k – 50K 14.70% 1.49% 12 TO 60 MONTHS
<=35K 15.75% 1.49% 12 TO 60 MONTHS
CITI BANK >=25K 10% to 15.99% 1.50% 12 TO 60 MONTHS
Axis BANK >=25K 11.25%-14% 1.50% 12 TO 60 MONTHS

Indian Railways

Is the fourth largest Rail network of the world, it is part of the government sector under the Ministry of Railways.
The Gazetted Staff of the Indian Railway is included in the special government category for Personal Loans.

Rate Chart:

Loan Provider Net Salary Rate of Interest Processing fees TENURE
HDFC BANK >=50K 14.25% 1.50% 12 TO 60 MONTHS
>=35k 15% 1.50% 12 TO 60 MONTHS
>=25K 16.25% 1.50% 12 TO 60 MONTHS
ICICI BANK >=35K 15.75% 2% 12 TO 60 MONTHS
20K-35K 17.75% 2% 12 TO 60 MONTHS
CITI BANK >=35K 13.99% 1% 12 TO 60 MONTHS
>35K 16% 2% 12 TO 60 MONTHS
Axis BANK >=20K 15-18% 2% 12 TO 60 MONTHS
>=75K 11.25% 1% 12 TO 60 MONTHS
Axis BANK
(Salary Account Holder)
>=50k 12.75% 1.50% 12 TO 60 MONTHS
>=35K 12.49% 1.50% 12 TO 60 MONTHS
<35K 14.99% 1.50% 12 TO 60 MONTHS

Personal Loan for Defence

The Defence forces of country comprise of the Indian Armed Forces which are the military forces of country .The three uniformed services The Indian Army, The Indian Navy & the Indian Air force additionally supported by the Indian Coast Guard & the Assam frontier Riffles & various inter service commands & institutions. The Defence forces come under the jurisdiction of the Ministry of Defence.

The Paramilitary forces are responsible for the internal peacekeeping & the Law & Order maintenance of our nations it also known as the Central reserve police force & come under the ministry of Home Affairs. These include the following services

  • Central Reserve Police Force
  • Border Security Force
  • Indo Tibetan Border Police
  • Central Industrial Security Force
  • Sashastra Seema Bal
  • National Security Guard
  • Special Protection Group

Prominent Banks offer special rates & discounts on processing fees to the Defence & Paramilitary forces. Some Banks also forward personal loans to Police personnel.

Rate Chart:

Loan Provider Net Salary Rate of Interest Processing fees TENURE
HDFC BANK All income category 14.75% NIL 12 TO 60 MONTHS
ICICI BANK All income category 14.75% NIL 12 TO 60 MONTHS
CITI BANK >=35K 13.99% 1% 12 TO 60 MONTHS
<=35K 16% 2% 12 TO 60 MONTHS
Axis BANK >=20K 15-18% 2% 12 TO 60 MONTHS
>=75K 11.25% 1% 12 TO 60 MONTHS

Personal Loan for Pensioners

Personal loans for Pensioners can be availed by retired employees of Central government, State government & Defence services. After serving in the government services for an entire lifetime Employees are guaranteed a safe & secure livelihood on retirement. The pay commission has increased the pension structure of retired persons; they can afford a good lifestyle.

Taking into account the pension granted as a regular income Banks offer personal loans to pensioners to meet their requirement for funds for medical expenses, a child’s wedding or any other personal expenses.

The personal loan Tenure for pensioners is up to 5 years after the retirement date & the maximum age is 76 years.

Rate Chart:

Loan Provider Net Salary Rate of Interest Processing fees TENURE
HDFC BANK All income category 14.50% 1.50% 12 TO 60 MONTHS

Other Personal Loan Charges

Rate of Interest 10.99% – 18%
Processing fees 0% up to 2%
Preclosue charges As per Bank policy
Other Charges incurred for a Personal Loan
Loan cancellation charges Nil (However the processing charges will not be re funded.
Interest will be charged on the interim period of loan closure.
Cheque Bounce Charges Rs 550/- per cheque Bounce.
Charge for late payment 2% per month from date of unpaid EMI
Cheque swapping charges Rs 500/-
Amortization Schedule charges Rs 200/-
Stamp Duty At actual as per applicable law
CIBIL report copy charge Rs 50/- per copy.
Service Tax/Other Taxes At actual applicable presently or in the future.
Legal,reposession & incidental charges At actual.

Representative example of Charges for a Personal Loan of 1 lakh

Loan amount ₹ 100,000
Processing fees Nil to ₹ 2000/-
EMI for 36 months tenure @ 14% ₹ 3417/- monthly
Preclosure charges as per individual policy of the Bank
Stamp duty & taxes levied as per government rules & regulations

Documents Required

KYC Documents:

  • Identity Proof – PAN Card/Aadhaar Card/Driving Licence/Passport/Government ID

  • Address Proof (Present & Permanent) – Aadhaar Card/Driving Licence/Passport/Utility Bill

  • Passport size photographs-2

Income Documents:

  • Salary Slips for the last 3 months.

  • Bank Statement for the last 3 months (showing salary credits)

  • Form 16 current/last year

Proof of Government service:

  • A Government ID card showing the Designation & Department.

  • Service Certificate with Government ID Number