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Personal Loan for Defence Personnel

Personal loan for defence personnels can be obtained from many banks, such as SBI, HDFC, PNB, and so on. You can get a loan amount of up to Rs. 40 Lakhs at concessional interest rates and processing charges. These loans come with longer tenure and require minimal documentation. 

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Personal Loan Schemes for Defence Personnel in India

Realising the growing need for personal loans among defence personnel, many lenders in India started offering special personal loan for defence personnel and pensioners to help them cater to their financial needs. SBI (State Bank of India), Saraswat Bank, HDFC Bank, PNB (Punjab National Bank) and many other lenders offer personal loans to these individuals.

Below are some popular personal loan schemes for defence personnels from top banks: 

SBI Personal Loan for Army Person

SBI offers special personal loans for army persons under the SBI Xpress Credit loan and SBI Quick schemes. Following are the details of SBI personal loan for defence personnel:

  • Rate of interest: SBI personal loan interest rate for defence personnel varies from 10.60% to 13.60% p.a.
  • Loan amount: The loan amount for SBI personal loan for army person varies from Rs. 24,000 to Rs. 20 lakhs.
  • Processing fee: SBI offers 100% waiver on processing fee on this loan.
  • Repayment tenure: The tenure of loan repayment for personal loan for defence personnel in SBI 6 months to 6 years.
  • Prepayment charges: 3% on prepaid amount. There are no prepayment charges if the account is closed from the proceeds of a new loan account within the same scheme. 
  • Eligibility: 
    • Minimum age should be 21 years.
    • Minimum monthly income should be Rs. 15,000.
    • EMI/NMI Ratio should be less than 50%.
    • Should have a Salary Account with SBI or other banks.
    • You can also get SBI personal loan for paramilitary personnel.

HDFC Personal Loan for Defence Personnel

HDFC offers personal loans for defence personnel up to Rs. 40 Lakhs and repayment tenure of 12 to 60 months. Generally, HDFC personal loan interest rate for defence personnel starts from 10.25% p.a. for other borrowers. However, interest rate for HDFC personal loan for army person can be different as the bank offers preferential pricing on loans for defence personnel.

HDFC personal loan for defence personnel are easy to obtain and require very few documents.

PNB Personal Loan for Defence

PNB offers personal loans for defence personnel up to Rs. 10 lakhs at attractive interest rates starting from 8.45% p.a. and processing fee up to 1% of loan amount + GST. Currently, the processing fee is waived off completely. The repayment tenure is 1 to 5 years and foreclosure facility can be availed of at zero additional charges.

Till verification of the documents and disbursal of funds, applicants have to be posted at the same location and they also require job confirmation proof from their department head. After receiving the funds, they can repay the loan amount in EMIs from anywhere through the auto debit option.

Also Check: Cibil score required for personal loan

Comparison of different personal loan schemes for defence personnel

BankInterest RateTenureEMI (Per lakhs)Disbursed
HDFC Personal Loan10.50%5 YearsRs. 2,149 Instant Disbursed only for HDFC Customer
ICICI Personal Loan10.50%6 YearsRs. 1,8783 to 4 days
SBI Personal Loan9.60%6 YearsRs. 1,8325 to 7 days
PNB Personal Loan8.45%5 YearsRs. 2,0495 to 7 days
Bajaj Finserv Personal Loan13%5 YearsRs. 2,27524 Hours
Tata Capital Personal Loan10.99%6 YearsRs. 1,9035 to 7 days
Indiabulls Personal Loan13.99%2 YearsRs. 4,80124 Hours
Citibank Personal Loan9.99%5 YearsRs. 2,1245 to 7 days
Yes Bank Personal Loan10.99%5 YearsRs. 2,1745 to 7 days

Large private sector banks including HDFC Bank, ICICI Bank and Axis Bank seem to have finally recognized the important role such employees have in serving the nation and are open to offering various types of Personal Loan products to such individuals. For the men and women serving in these organizations of national importance, there is finally recourse to get funds through the Personal Loan route which is amongst the quicker ways to liquid funds without collateral. It is understood that Personal Loan Interest Rates are being offered at 8.45% p.a. onwards.

Demand for Personal Loans has been growing on the back of rationalization of interest rates, easy availability of such loans from banks and financial institutions, online credit scoring as well as emergence of intermediaries and third party financial product distributors such as MyMoneyMantra who has reached out the customers from all walks of life.

The reluctance to provide such loans was understood to be based on multiple factors some of which include – frequent transfers, changing banking relationships, low salary (before seventh pay commission).

However, change is in the air, and over the last few months some leading private sector banks have proactively started offering Personal Loan products to employees (mentioned in the table below) serving in Defence, Paramilitary and Railway services.

If you fall under any of the categories mentioned above, you can apply online for personal loan for defence personnel with MyMoneyMantra to get access to quick funding.

Also Check: SBI Cibil Score for Personal Loan

Navi Personal Loan @9.99% p.a

Now get Navi personal loan of Rs. 10,000 to Rs. 20 Lakhs at lowest interest rate starting from just 9.99% per annum. Repay in easy instalments of 3 to 72 months. The processing fee ranges from 2.5% to 6% of the sanctioned limit + GST.

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Personal Loan for Defence Personnel FAQs

Can government employees take personal loans?

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Yes, many banks, such as SBI, HDFC, PNB, ICICI, and so on offer personal loans to government employees.

Which banks offer loans for defence personnel?

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SBI, HDFC, and PNB are some of the most popular banks that offer personal  loans for defence personnel.

What will be the rate of interest charged?

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The interest rates on these loans vary from lender to lender and start from as low as 8.45% p.a.

Can retired defense personnel apply for a loan?

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Yes, many banks, including SBI, PNB, etc. offer personal loans to retired defense personnel.