SBI Personal Loans for Govt Employees: Interest Rates & Features

SBI Personal Loans for Govt Employees: Interest Rates & Features

If you are a government employee who is thinking of applying for a Personal Loan you are lucky to have a Personal Loan option with maximum benefits, and that too, on the customised terms & conditions from the banking major-the State Bank of India.

SBI is the name to reckon with. It is the largest public sector bank in India with an impressive network of branches spread all across the country. The Personal Loans by SBI are particularly popular for the customer-friendly application process and low rate of interest. The bank extends different Personal Loan products such as SBI Saral Personal Loan, SBI Xpress Credit Personal Loan, and SBI Personal Loan to cater to a varied base of customers.

The SBI offers separate Personal Loan products to meet the distinct needs of different segments such as salaried, self-employed, pensioners, etc. Likewise, they have designed a customized Personal Loan for Government Employees with some of the striking features and benefits. 

Types Of SBI Personal Loan Interest Rates
SBI Xpress Credit

12.00% Apply Now

SBI Xpress Power

12.10% Apply Now

Pension Loan

11.95% Apply Now

XpressElite Scheme

11.00% Apply Now

SBI Personal Loan for Government Employees

Here is a quick list of features and benefits of Xpress Personal Loan by SBI for government employees:

Loan Amount: SBI Personal Loan can be borrowed for a minimum of Rs.25000 and the Maximum of 24 times the net monthly income, or Rs 15 lakh.

10 Best Banks for Personal Loan in India 2020

Lower Interest Rate: SBI charges lower interest rates on Personal Loan which is calculated on a daily reducing balance. For regular customers, the interest rate is 12.00% onwards per annum while government employees can avail the loan at a lower rate beginning from 10.50 percent per annum.


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Low Processing Fee: SBI charges low processing fees from government employees. As for regular customers, a nominal processing fee of 1 %, excluding taxes, is charged when they borrow SBI Personal Loan, but government employees enjoy a lower rate of processing fees. For Defence Personnel, the processing fee is Zero. There are no hidden charges involved.

Minimal Documentation: To avail the swift disbursal of Personal Loan, you need to ensure timely submission of documents after the loan approval. Keep following ready for the same:

Identity Proof (anyone): Pan Card/ Voter ID/ Passport/ Driving License/ Adhaar Card

Address Proof (anyone): Adhaar Card/ Passport/ Driving License/ Voter ID/ Latest Utility Bills

Income Proof: Last 3 months’ bank statement; Salary Slips of last 3 months and salary certificate (for employed individuals); Latest ITR/ Form 16 (for self-employed individuals)

Others: Duly filled application, Passport sized picture and processing fee cheque.

Check Personal Loan Eligibility

Experience:  You must have an experience of 6 months in the current job, and the overall work experience (putting together all previous jobs) should not be less than 3 years.

Repayment Period: The loan tenure can be up to 60 months or up to a residual job period.

Collateral: No loan security is required to apply for Personal Loan.

Credit Score: Being an unsecured loan, you need to have a good credit score to get the loan approval. You would require a minimum of 700 CIBIL score to get the loan approval.    

Eligibility: Government employees working with the following departments can apply for SBI Xpress Personal Loan, provided they have an SBI Salary Account:

  • Employees of Central, State, and Quasi-Government

  • People working with central Public Sector Units (PSUs)

  • People working for a profit-making State Public Sector Units (PSUs)

  • National level Educational Institutions

  • Besides, employees of Select Corporates, having a business relationship with Bank as well as other Corporates, fulfilling bank’s terms & conditions can also apply

Age: The applicant should be a minimum of 21 years old, and the maximum age limit is 58 years. 

Income: You need to have a minimum net monthly salary of Rs. 5,000 from the departments as mentioned above, to be eligible for the SBI Xpress Personal Loan.

EMI/NMI Ratio: The EMI should not be more than half of the net monthly income.

Overdraft Facility: The applicant can also benefit from the overdraft (OD) facility. The OD can be availed for Rs.5 lakh to Rs 15 Lakh, or 24 times the net monthly income.

  • The OD is linked with DP (drawing power).

Limit for Teachers: The School Teachers can borrow the maximum of 12 months Gross Salary under both Personal Loan and Overdraft.

Facility to apply for Second Loan:

After one year of your Xpress loan, you can apply for a second Xpress loan. Only those with regular repayment record would be eligible for the same. You cannot borrow more than two personal loans on your name. Also, it is mandatory to maintain an overall EMI to net monthly income ratio of 50%. Neither a guarantor nor collateral is required to avail a second personal loan.

Penal Interest:

A penalty is applicable on overdue. On every EMI due, a penal interest of 2% p.a. will be levied over and above the interest rate for the period of default. If part of EMI is pending, penal interest would be waived off.

Prepayment Charges:

A prepayment charge of 3% on the prepaid amount will be levied on both part and full prepayment of the loan before the term. However, if a new loan account is opened to prepay the loan, no charge is levied.



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Category: Personal Loan