As a government employee, you are entitled to certain perks and privileges along with your salary. But sometimes, even these benefits of being a government employee are not enough to help you fight off a financial emergency. This emergency could be on account of an upcoming wedding, medical expenses, or any unforeseen personal event. In such a situation, you might think of borrowing money from your acquaintances, but it is not the ideal solution. First of all, they might not have as much money you require and then in many situations could be reluctant to lend it as well. In such a situation, the best option that you have is to avail of a Personal Loan.
Personal loans have risen in popularity over the last few years for the benefits and flexibility they offer. Keeping in mind the particular requirements of government employees, many financial institutions have started offering Personal Loans created exclusively for them. One of the most feature-rich and noteworthy Personal Loan for government employees in the present market is SBI Personal Loan.
About SBI Personal Loan for Government Employees
State Bank of India, SBI is the leading public sector bank with a large customer base all over India. SBI is known for offering innovative financial products that are eagerly awaited by the customers. SBI Personal Loan for government employees has been designed to address the urgent financial requirements of government employees effectively. Like other SBI Personal Loans, this is also an unsecured loan and does not require any collateral or guarantor to secure the loan amount.
Salient features of SBI Personal Loan for Government employees
SBI Xpress Credit Personal Loan is an exclusively created Personal Loan for Government Employees. Following are some of the major noteworthy features of this loan offering from SBI:
1. SBI Xpress Credit Personal Loan can be used by the borrower for any personal emergency without any need to inform the bank regarding the usage of the money.
2. The minimum loan amount as a term loan is Rs. 25,000 while the maximum available amount as an overdraft is Rs. 5 Lakh.
3. The maximum amount available under this loan as a Term Loan or Overdraft is Rs. 20 Lakh, subject to the credit profile of the applicant.
4. Interest rates against SBI Personal Loan for government employees start from 11.9% per annum.
5. It is an unsecured loan offering and does not require any collateral or a guarantor to secure the loan amount.
6. Only basic documentation is required to process the application. Approvals and disbursals are done within a few working days.
7. Minimum repayment tenor is 6 months, and maximum repayment tenor is 6 years or time left for retirement.
8. Processing fees applicable is 1% of the availed loan amount plus taxes. Foreclosure charges of 3% are applicable in the case of pre-payment.
9. Interest will be charged on daily reducing balance basis. The overdue amount will attract 2% penal interest charges.
10. Applicant must have a Salary Account with SBI to avail this facility.
If you are a government employee and wish to apply for the SBI Personal Loan for government employees, then you should check out your eligibility criteria as per the below-mentioned parameters:
1. You must have a salary account with State Bank of India and must be receiving a minimum monthly income of Rs. 15,000/- in that account regularly.
2. The maximum amount available to you as a Personal Loan would be 24 x NMI (Net Monthly Income).
3. The EMI/ NMI ratio should be less than 50%.
4. You can apply for a Second Loan anytime after the first loan has been disbursed. However, your EMI/ NMI ratio should not exceed 50%.
5. You should be employed with Central, State, or Quasi-Government departments or Central PSUs and profit-making state PSUs.
6. Applications should be made through the branch or the YONO app.
7. You should fall within the age bracket of 21 years – 58 years.
8. The minimum work experience you possess should be 3 years with at least 6 months with the present employer.
9. You must have a CIBIL Score of 750+ to be approved for this SBI Personal Loan for government employees. CIBIL scores of 700+ are also acceptable, subject to certain conditions.
10. You can avail a second loan under this scheme to foreclose the dues of the first loan without incurring any foreclosure charges.
Benefits of applying for SBI Personal Loan for Government Employees
1. Apart from extending financial freedom to take care of your urgent expenses, SBI Personal Loan for government employees offers you several other benefits such as High-Value loans. With high-value loans of up to Rs. 20 Lakh, you can effectively take care of your financial liabilities. You can also use this amount to consolidate your multiple small loans and high-interest Credit Card debts.
2. Extended Repayment Tenor: With an extended repayment tenor of up to 6 years, you can opt for an EMI amount as per your comfort level without stretching your finances.
3. Low-Interest Rates: Interest rates starting from as allow as 11.90%. This Personal Loan minimizes your interest costs and allows you to save money on your repayments.
4. Minimal documentation: As you already have a Salary Account with SBI, only minimal documentation is involved in the application process. Rest of the information is collected from your customer profile with the bank.
5. No Hidden costs: You are informed upfront regarding the various expenses and costs involved with the loan. There are no hidden charges associated which can otherwise act as a financial burden.
With so many benefits on offer, SBI Personal Loan for government employees is an excellent option to help you meet your financial obligations in an efficient manner.