Special Personal Loan interest rates for Government employees

Serving the government as an employee is a matter of pride. A government job not just ensures job security but also a wide range of benefits. While private sector employees enjoy high salaries, you can enjoy monetary benefits, too, in the form of special Personal Loan scheme for government employees.

Personal Loan for Government Employees

Many banks and non-banking financial companies (NBFCs) provide Personal Loans to government employees at attractive interest rates. These Personal Loan interest rates are lower than the rack rates offered to private sector employees. Some lenders also charge zero processing fees to employees of the defence sector.

Eligibility criteria

To be eligible for a Personal Loan, you must fulfil the basic criteria:

  • Age: 21-65 years
  • Income: Minimum Rs.20,000 for government and permanent employees, which may vary from lender to lender
  • Credit score: Over 700


Government entities eligible for special Personal Loan interest rates

Central and State Government: All confirmed and permanent employees working for the central government or state government

Maharatna PSUs:Employees of the seven Maharatna companies, namely:

  • Bharat Heavy Electricals Limited (BHEL)
  • Gas Authority of India Limited (GAIL)
  • Oil and Natural Gas Corporation (ONGC)
  • Steel Authority of Indial Limited (SAIL)
  • Coal India
  • NTPC
  • IOCL

Navratna PSUs:Employees of the Navratna companies. Some of them are:

  • Bharat Petroleum Corporation Limited (BPCL)
  • Container Corporation of India Limited (CONCOR)
  • Rashtriya Ispat Nigam Limited (Vizag Steel)
  • Hindustan Aeronautics Limited (HAL)
  • Hindustan Petroleum Corporation Limited (HPCL)
  • Mahanagar Telephone Nigam Limited (MTNL)
  • National Mineral Development Corporation Limited (NMDC)


Public Sector Banks:There are 21 nationalized banks in India that fall under this category. Some of the banks include the State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda, Canara Bank and Indian Bank.

Educational Institutions:Confirmed/permanent employees and teachers working in schools, colleges, universities, autonomous bodies

defence:Permanent employees working for Indian defence services. It includes –

  • Indian Navy, Army and Air Force
  • Military Station Headquarters
  • Border Security Force (BSF)
  • Central Reserve Police Force (CRPF)
  • Central Industrial Security Force (CISF)
  • Services Selection Board (SSB)
  • National Disaster Response Force (NDRF)
  • Indo Tibetan Border Police (ITBP)

Calculating EMIs

Although discounted, different lenders offer different rates of interest. The rate of interest will depend on your income, credit score and your employer. As the interest rate changes, so will your EMI. Calculating the EMI for every interest rate can be a cumbersome process. Not just that, EMI is also affected by change in loan amount as well as tenor. Alter any one of these three and the EMI will change.

To Sum up

You no longer need to postpone your financial goals due to shortage of funds. The special Personal Loan for government employees is offered by banks as well as NBFCs. In fact, financial institutions like Bajaj Finserv not just offer attractive interest rate but also an online account to track progress of your loan in real time.


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