SBI Provides Personal Loan for Government Employees i.e To the employees of under noted entities maintaining salary account with SBI at zero margin.
Central and State Government, Quasi- Government, Central PSUs, Educational Institutions of National Repute, Selected corporates who have business relationship with banks are eligible to apply for personal loan.
All the other important information regarding the Personal Loan is given below;
Quantum Of Finance
For Term Loans :-
Minimum loan of ₹ 25,000/- is sanctioned up to a maximum of 24 times net monthly income subject to a maximum of ₹ 15 Lakhs.
For Overdraft :-
Minimum of ₹ 5 Lakhs and maximum same as for the term loan i.e ₹ 15 Lakhs.
Maximum loan amount for School Teachers is capped at 12 months Gross Salary both under Term Loan and Overdraft facility.
Repayment Tenure
Maximum 6 months or residual service provide whichever is less.
Income Clause
To avail Personal Loan For Government Employees, The net monthly income of the borrower should be ₹ 5000/-
Interest Rates
Effective interest rate to avail personal loan for government employees ranges from 11.90% to 14.75% per annum.
Processing fees
1% of the loan amount + Applicable service tax.
Prepayment charges
Any EMIs prepayment full / part and closure of account before the end of term will attract the prepayment charges of 3% on prepaid amount.
No prepayment or foreclosure charges will be applicable if the account is closed from the proceeds of a new loan account opened under the same scheme.
Penal Interest
Penal Interest @2% p.a. would be charged over and above the applicable interest rate on the overdue amount for the period of default. If part instalment or part EMI remains overdue then penal interest should not be levied.
Provision for 2nd Loan
Two loans can be taken from the bank at the same time. Second Loan can be taken after 1 year of disbursement of the 1st loan which needs to be satisfactorily conducted and is regular at the time of sanction of 2nd Loan. However, There cannot be more that two loans.
This is subject to the overall EMI/NMI ratio of 50%.
No margin is set as per the bank till now. Also, no security / third party guarantee is required.
If you are a Central / State Government or Defence pensioner drawing pension through one of SBI Branches then you can also avail SBI Pension Loan. To get pension loan your age should not be more than 76 years. SBI offers quick loan disbursal with no hidden costs, low processing fees & minimum documentations.
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