Top 5 Personal Loan Lenders for Government Employees

17 Feb 2020 7 min read
Personal Loan: Here are the Top 5 Personal Loan Lenders for Government Employees - Afinoz

All individuals at some point in their lives face challenges to overcome financial problems and government employees are no exception. Personal loans bring deep relief to individuals facing difficulties in meeting unplanned expenses. With dozens of lenders offering loans, it is very simple to get a personal loan

While government employees can get a personal loan from any lender, some lenders have exclusive offers for them owing to their financial stability. State Bank of India, Union Bank of India, HDFC Bank, Oriental Bank of Commerce and IDBI Bank offer attractive schemes to government employees. 

Personal loans for government employees

Bank  Interest Rate Loan Amount Processing Fee
SBI Xpress Credit Personal Loan 11.50% - 14.50% p.a Up to Rs. 20 lakh 1.50% of the loan amount
Union Bank of India 10.10% p.a. onwards Up to Rs. 15 lakh Nil
HDFC Bank 10.75% to 21.30% p.a Up to Rs. 15 lakh 2.50% of the loan amount
Oriental Bank of Commerce 11.45% p.a. onwards Up to Rs. 5 lakh 0.50% of the principal with minimum of Rs. 500/- + GST
IDBI Bank 12% to 14% per annum Up to Rs. 10 lakh 1% of the loan amount

SBI Xpress Credit Personal Loan for government employees

State Bank of India offers Xpress Credit loan scheme for employees working with central, state and quasi-government organisations, as well as central PSUs and profit-making state PSUs. Government employees who have a salary account with State Bank of India can get SBI Xpress Credit loan up to Rs. 20 lakh for various requirements such as their wedding or a vacation, unplanned emergency, or big-ticket purchase. SBI Xpress Credit Personal Loan

SBI Xpress Credit personal loan benefits

  • Higher loan amount up to Rs. 20 lakh
  • Ample repayment tenure up to 72 months
  • Nominal processing fee 1.5% of the principal
  • Provision for a top-up loan

SBI Xpress Credit personal loan key features

Age limit 21 to 60 years
Loan amount Up to Rs. 20 lakh/ 24 times NMI
Minimum income Rs. 15,000 per month
EMI/NMI ratio Less than 50%
Interest rate

For defence applicants: 11.50% – 12.00% p.a.

For other applicants: 12.00% - 12.50% p.a. 

Loan tenure Maximum 72 months or the balance tenure of service, whichever is less

Read: SBI Personal Loan for govt employees

Union Bank of India personal loan for government employees

Government employees who face difficulties in purchasing goods or paying urgent expenses can get a personal loan from Union Bank of India. Personal loans are available for confirmed or permanent employees of central/ state government organisations, central/ state PSUs, central/ state government undertakings, defence/ armed personnel, departments under ministries, and staff of government education institutions. Union Bank of India personal loan for government employees 

Benefits of Union Bank of India personal loan 

  • Zero processing charges
  • No security required to get the loan; guarantee of one co-employee will be enough

Union Bank of India personal loan key features  

Minimum age 18 years
Loan amount Up to Rs. 15 lakh
Interest rate

With employer undertaking: 1Y-MCLR + 2.00%

Without employer undertaking: 1Y-MCLR + 3.50%

Processing fee Nil
Loan tenure 5 years or one year prior to retirement, whichever is earlier

HDFC Bank personal loan for government employees

HDFC Bank is one of the best lenders of personal loans in the country. Government employees can get a personal loan at attractive interest rates starting from 10.75% p.a. for their dozens of financial needs. The procedure of applying for a personal loan with HDFC Bank is quick and simple and needs minimal documentation. HDFC Bank personal loan for government employees

Benefits of HDFC Bank personal loan

  • Minimal documentation: Online application with minimal documentation. 
  • Fastest disbursal: Customers of HDFC Bank can get a pre-approved loan in a few seconds and non-customers within a couple of hours.
  • Personal loan balance transfer: Personal loan borrowers can get the following benefits by transferring their personal loan from the existing lender to HDFC Bank:
  • Interest rate as low as 11.49%
  • Flat processing fee of Rs. 3999

HDFC Bank personal loan key features

Age limit 21 to 60 years
Loan amount Up to Rs. 15 lakh
Minimum income
  • Rs. 20,000 in Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Pune, Kolkata, Ahmadabad, Cochin
  • Rs. 15, 000 elsewhere
Interest rate 12% to 14% per annum
Loan tenure From 12 to 60 months
Prepayment charges
  • 13 - 24 months - 4% of outstanding loan amount
  • 25 - 36 months - 3% of outstanding loan amount
  • After 36 months - 2% of outstanding loan amount

Oriental Bank of Commerce (OBC) personal loan for government employees

Oriental Bank of Commerce offers an exclusive term loan scheme for the permanent and confirmed employees of government organisations, including central and state government, PSUs and other organisations having their salary account with the bank. Under this scheme government employees can get up to Rs. 10 lakh loan for their personal needs. Oriental Bank of Commerce (OBC) personal loan for government employees

Benefits of Oriental Bank of Commerce personal loan

  • Government employees need to undertake nominal documentation
  • Applicants whose minimum income is as low as Rs. 10,000 can get the loan from OBC
  • Those who don’t have an account with the bank need to have a minimum salary of Rs. 50,000

Oriental Bank of Commerce personal loan key features

Age limit 21 to 60 years
Loan amount Up to 15 times gross salary subject to a maximum of Rs. 10 lakh
Minimum income
  • Rs. 10,000 for government employees having their salary account with the OBC
  • Rs. 50, 000 government employees not maintaining salary account with the bank
Interest rate 11.45% p.a. onwards
Loan tenure 60 EMIs
Security One personal guarantor preferably co-employee
Prepayment charges One personal guarantor preferably co-employee

IDBI Bank personal loan for government employees

All central & state government and PSU employees and pensioners having salary/ pension account with IDBI Bank can apply for a personal loan from IDBI Bank. Borrowers can get up to Rs. 10 lakh personal loan to meet their unexpected financial requirements including higher education, renovation of home, medical expenses, abroad trip and wedding expenses. IDBI Bank personal loan for government employees

Benefits of IDBI Bank personal loan

  • Flexible repayment tenure ranging from 12 to 60 months
  • Free personal accident insurance cover for personal loan borrowers
  • To-up loan facility for existing personal loan borrower with clear repayment history for 1 year

IDBI Bank personal loan key features

Age limit 21 to 60 years
Loan amount Up to Rs. 10 lakh
Minimum income Rs. 1,80,000 p.a.
Interest rate 12% to 14% per annum
Loan tenure From 12 months to 60 months
Prepayment charges
  • 2% of the outstanding principal on foreclosure before 6 months of disbursal 
  • Foreclosure/ prepayment after 6 months of disbursal may not have any charges

Documents required for getting personal loan for government employees

While documentation may vary from lender to lender, checklist of the basic documents is as under: 

  • Identity proof 
  • Residential proof
  • Employment proof
  • Salary slips and bank statement 
  • Passport size photographs 

If you are working with any of government organisations, you must check with the bank where you have your salary account about exclusive offers for government employees. Banks usually dole out additional discounts for government employees.   

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