Government Employees: Why not Have a Look on SBI Personal Loan Schemes

By Tori 5 years ago

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Over the past couple of years, there is a significant surge in unsecured loans. There is an increase in demand for personal loans and credit cards. Among various audience group, Government employees have their charm. They are entitled to many benefits with low-interest rate. The reason is their job stability and fixed monthly payment. Even people working for Public sector units like NTPC, Indian Oil, and Bharat Petroleum can avail a personal loan at low-interest rate. Here, we will discuss some personal loan schemes of SBI Bank for government employees. Employees working in the Central Government, State Government, and Public Sector Undertaking are eligible for low-interest rates.

Government employees cheer up! Whether it is a medical emergency, family vacation or a wedding function – they can avail SBI Xpress Credit Loan up to Rs 15 lakhs with a maximum tenure of 48 months. The interest rate for an SBI Personal Loan starts at 11 % p.a. Moving over to another popular product, SBI Pension Loan, the maximum loan amount is Rs 14 lakh for a maximum tenure of 5 years. SBI Pension Loan interest rate starts at 12.45% onwards. There is zero processing fee for the Defense personnel.

Eligibility Conditions for an SBI Personal Loan –

  1. An applicant should be aged between 21 to 58 years of age.
  2. The minimum monthly income requirement is Rs 20,000
  3. Employees should have an experience of not less than 3 years, and on the present job, their experience should not be less than 6 months
  4. Good CIBIL Score. 700+ CIBIL Score makes a winning personal loan application.

Documents Required for an SBI Personal Loan

Being a Government Bank, SBI asks for the following documents –

  1. Duly signed in the application form
  2. Identity Proof Documents – Voter ID Card, PAN Card, Driving License, Passport, etc
  3. Processing Fee Cheque
  4. Last 6 months of bank passbook statement and 3 months bank statement
  5. Last salary certificate/current salary certificate/Form 16 for self-employed individuals
  6. Latest ITR, bank statement, Form 16 for self-employed individuals

How is SBI different from ICICI & HDFC Bank?

Verticals ICICI Bank Interest Rate HDFC Interest Rate
Central Government Employees 11.60% 15.50%
State Government Employees 11.60% 15.50%
Maharatna PSU 11.35% 11.49%
Navratna PSU 11.35% 11.49%
Railways 11.60% 14.99%
Defense 11.50% 16.00%
PSU Banks 13.25% 15.50%

How SBI is different from Bajaj Finserv Personal Loan

Interest rate charged by Bajaj Finserv Personal Loan is higher as compared to the SBI rates.

Bajaj Finserv Eligibility –

Rate of Interest 13.99% p.a.
Employees Government, Railway and PSUs
Income ₹ 27000/32000/37,000
Amount Loan ₹ 25 lakh
Tenure 60 months
Processing Charge 2.25% to 3% of the loan amount

Maximum Permissible Loan Amount for Central & State Government Pensioners –

Maximum Loan Amount Age
Rs 14 lakh 72 years
Rs 12 lakh 72-74 years
Rs 7.5 lakh 74-76 years

Maximum Permissible Loan Amount for Defense Pensioners 

Maximum Loan Amount Age
Rs 14 lakh 72 years
Rs 12 lakh 72-74 years
Rs 7.5 lakh 74-76 years

Maximum Permissible Loan Amount for Family Pensioners

Maximum Loan Amount Age
Rs 5 lakh 72 years
Rs 4.5 lakh 72-74 years
Rs 2.5 lakh 74-76 years

Salient Features of an SBI Personal Loan for Government Professionals –

Minimum term Loan Amount ₹ 25,000
The maximum term loan amount 24 times NMI with a maximum of Rs.15 lakh
Minimum amount for overdraft ₹ 5 lakh
Maximum amount for overdraft 24 times NMI with a maximum of Rs.15 lakh
Minimum NMI ₹ 5000
EMI/NMI Ratio <50%
Tenure of the repayment residual service for the 5-year period or whichever is less
Penalty Interest 2% per annum
Charges for the Prepayment Prepaid amount’s 3%
Processing Fee 1% of the loan amount + service tax that will be applied

How to apply for an SBI Personal Loan?

  1. You need to visit the official website and fill out the application form available there.
  2. Fill the required information and the bank representative will get back to you
  3. Then you need to confirm the details. Usually, you provide income proof documents like salary slips, bank statement or IT Returns
  4. Once confirmed, you will receive the money in your account.

Note: You can apply directly or apply through any online financial marketplace. Even, when you apply through any Fin-Tech marketplace, there is no fee, and you get cashbacks. 

Frequently Asked Questions (FAQs)

  1. I am working in a public sector corporation. Should I go for SBI Personal Loan?

Yes. Why not. If you need money to meet your needs or fulfill your aspirations, apply for an SBI Personal Loan. Applying is easy and simple. Also, note down the following advantages of an SBI Personal Loan.

  1. The interest rate for an SBI Personal Loan starts 11.00% onwards
  2. SBI at regular intervals bring forth some special offers, where you can save on your deal.
  3. There is zero processing fee for the defense personnel.
  4. What should be my minimum monthly income to get an SBI Personal Loan?

Usually, you need to have a minimum monthly income of Rs 20,000 to eligible for an SBI Personal Loan. Though depending on your profile, there may be slight variations in your eligibility.

  1. How much experience is required to avail an SBI personal loan?

There should be a minimum experience of at least 6 months in the current job and a total of 3 years.

  1. Is a retired person available for an SBI Personal Loan?

Pensioners of Central/State/Defense establishments, who are drawing their pensions through any of the SBI branches and is not over 76 years of age are eligible to apply for an SBI Personal Loan.

Why SBI Personal Loan?

State Bank of India is the largest bank in India with over 60,000 ATMs and 24,000 branches. It is a government corporation statutory body with an asset size of Rs 40 lakh crore. It has a vast customer base of around 500 million. More than 2,50,000 employees are working in this multinational public sector bank.