5 Best Personal Loan Providers for Government Employees

5 Best Personal Loan Providers for Government Employees

The eligibility criteria of personal loans depend a lot on one’s employment. Salaried employees are preferred by the lenders as they have a regular income which assures the lenders of timely repayments. The lender also takes your employer into consideration. Bigger private sector firms and MNCs have an edge over the smaller unknown firms. Government employees are the most sought after by the lenders as they have job stability along with regular monthly income which considerably decreases any chances of default.


For availing a personal loan, the government employees must comply with the eligibility criteria as defined by the lenders. Though different lenders have different criteria, it is more so same on the following aspects.

  1. Age of the borrower: The personal loan applicant must be at least 21 years old at the time of application. Maximum age acceptable is 60 years. Lenders prefer that the loan tenure should be finished by the time you retire.
  2. Income: Most lenders seek a minimum of Rs. 15000 monthly income of the applicants. This becomes a deciding factor for the lenders on how much loan amount to offer.
  3. Employment: Personal loan for salaried can be easily availed by the government employees working with any department of state or central government, PSU, government colleges, government schools etc. Lenders are happily willing to offer them the loan, but they must have served at least 1 year in the job.
  4. Financial credentials: The applicant must not have much credit and liabilities on his head. The lenders are concerned about their repayments and hence take the ongoing loans, EMIs and credit history into consideration.


For a quick loan approval and processing, the government employees shall keep the documents pertaining to one’s proof of identity, proof of employment, proof of address, bank statements for past 1 year, salary slip for last 6 months and signature proof-verification handy.

Read More: Top 10 Personal Loan Finance companies in India – 2020

Here is a list of top 5 personal loan providers for government employees.

  • State Bank of India

SBI Personal loan comes with several benefits for paramilitary, defence and Indian coast guard personnel. The rate of interest for them cannot exceed 12.50% while for others it may go up to 15.40%. They charge processing fees of 1% along with taxes whereas the foreclosure charges are 3% of the prepaid amount.

  • HDFC Bank

HDFC Personal loan can easily be accessed through the bank’s digital platform. The government employees having their account with the bank can avail pre-approved personal loan products whereas those not having an account with the bank can get their loan approved in only 4 hours provided they meet the eligibility criteria and submit the requisite documents. HDFC bank provides flexible loan tenure to the borrowers. They charge up to 2.50% as processing fees and around 2-4% of the outstanding liability in case the borrower pre-pays the loan amount.

  • Axis Bank

Axis Bank offers easy application processing and quick approvals for the eligible candidates. Easy repayment options and flexible tenure makes this a prospective personal loan provider for government employees. They don’t charge you anything as foreclosure fees in case you close your loan before the loan tenure. Their processing fees charges vary between 1.50% to 2%.

  • Union Bank of India

Union Bank of India offers two rates of interest to the government employees depending upon whether they are presenting employer’s undertaking or not. If they are providing the employer’s undertaking, the bank will charge them latest 1-year MCLR+2% and in case they are not providing the same, latest 1-year MCLR+3.5% is charged. The government employee applying for a personal loan with them must also have an active savings account with the bank. The bank doesn’t charge any processing fees, but 1 per cent is charged on the outstanding liability in case the borrower closes the loan before the loan tenure.

 Oriental Bank of Commerce

The bank has several attractive offers for the government employees like a rebate of around 1 per cent of the actual interest rate than what is offered to other salaried individuals, processing fees of 0.5% (minimum of Rs. 500) of the loan amount, easy documentation processing and quick loan disbursal. One can avail a loan of up to Rs. 10 lakhs. The bank seeks a guarantor for offering their loan product.

Government employees can avail instant personal loans through LoansJagat portal and grab the best low-interest rate deal matching their profile. LonasJagat lets you compare the offers from these top lenders amongst several others to help you make an informed decision.

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