Personal Loan for Government Employees

Eligibility

• Permanent/confirmed employees of State/Central Government, Quasi Government, PSUs and profit earning State PSUs, National Level Educational Institutions, Select Corporates having a business relationship with the SBI, Corporates without any business relationship with the Bank (subject to certain terms & conditions).
• The applicant should be in the age group between 21 years to 60 years.
• Minimum Net Monthly income should be 5,000
• The EMI to Net Monthly income ratio after consolidating all the present commitments including the EMI of the proposed loan should not exceed 50%.
• Salary account should be maintained at SBI

Nature of facility

Both term loan and overdraft facilities

Purpose of loan

No specific purpose defined. Can be used for just anything. Can be used for planning a wedding or a vacation, for medical emergencies, for the renovation of the house, for education expenses, and so on.

Margin

Nil

Collateral security

No collateral security. This is the specialty of this loan

Third party guarantee

No third -party guarantee required

Repayment

Maximum 72 months or remaining service period (whichever is less)

Interest rate

The Interest is between 12% to 15% (as on 14.05.2019)

Processing fee

1% of the sanctioned loan amount + applicable GST

Pre-payment charges

• 3% of the amount t be prepaid
• Nil if the loan is closed with the proceeds of new loan account opened under the same scheme

Penal interest

2% over and above the applicable interest on the overdue amount for the period of default. If part EMI is overdue then penal interest will not be levied.

Other facilities

• There is a provision for a 2^nd loan under this scheme which can be taken after 1 year of disbursement of the loan provided the repayment towards the first loan is regular. There cannot be more than 2 Xpress Credit loans outstanding for a borrower.
• The second loan will be sanctioned only if the EMI to Net Monthly Income is maintained at 50% after including the EMI for the second loan.

Eligibility

• Permanent/confirmed employees of State/ Central Government, State/ Central Government undertakings, Armed personnel, PSUs, Ministries/ Department under Ministries, Defence personnel, Officers of All India Services, Teaching and non-teaching staff in Government Schools & Colleges.
• Minimum age of the applicant should be 18 years
• The applicant should have a salary account with the bank
• An applicant without a salary account will be eligible for only the Term Loan facility.

Nature of facility

Both term loan and overdraft facilities

Purpose of loan

End-use for the loan is not restricted. It can be utilised for just about anything.

Quantum of loan

The maximum quantum of loan is 15 Lakhs depending on the repayment capacity.

Margin

Nil

Collateral security

No collateral security

Third party guarantee

• Guarantee of one co-employee is required. One employee cannot be a guarantor for more than 2 co-employees.
• Guarantee of the spouse: If the borrower is unmarried/ widow/ widower, then third-party guarantee of a person who is having equal means and has a credit score of 700 and above should be given.

Repayment

• For term loan, the maximum repayment period is 60 months or one year prior to retirement whichever is earlier.
• For overdraft facility, on attaining the age of 55 years or 5 years prior to retirement age whichever is earlier. The overdraft limit will be reduced by 25% every year so as to clear the entire loan one year prior to retirement.

Interest rate

10.60% to 12.10% (as on 14.05.2019)

Processing fee

Nil

Eligibility

• Permanent and confirmed employees of PSUs, Centre/State Government, and other Government Institutions like Colleges/ Universities, etc.
• Applicants should have their salary account with the Oriental Bank of Commerce.
• The minimum net monthly salary should be 10,000 or above (not less than 30% of the gross salary after EMI deduction for the proposed loan).
• For employees who do not maintain a salary account with the Oriental Bank, gross monthly salary should be 50,000 or above.

Nature of facility

Term Loan

Purpose of loan

Can be utilised for any purpose like education, family function, wedding, travel, purchase of a gadget, renovation/repair of the home, medical emergency, and so on. There is no restriction on the end use, except that, it should not be used for speculative purposes.

Quantum of loan

Up to 15 times of the gross salary (maximum 10 Lakhs)

Security

Personal guarantee of a fellow employee with a restriction that one employee cannot stand as guarantor for more than 2 loan accounts.

Margin

Nil

Interest rate

11.50% p.a. (as on 14.05.2019)

Penal interest rate

2% above the normal interest will be charged on the overdue amount for the overdue period.

Repayment

Up to 60 months

Processing fee

0.50% of the sanctioned loan amount (minimum 500) + applicable taxes.

Pre-payment charges

Nil

Eligibility

• Confirmed government sector employees of PSUs, Central/Local bodies
• Minimum net monthly income 15,000
• Age between 21 years to 60 years

Nature of facility

Term Loan

Quantum of loan

Minimum 50,000 and maximum 15 Lakhs

Purpose

Can be used for any purpose as per the borrower's discretion. There is no restriction on end use.

Security

Unsecured loan. No security is required

Margin

Nil

Interest rate

Fixed Rate of Interest (as on 14.05.2019):

• For loans with repayment tenure up to 36 months: 16% to 24%
• For loans with repayment tenure above 36 months: 15.75% to 24%

Penal interest rate

2% on the overdue amount for the overdue period

Pre-closure charge

Nil

Purpose

Can be used for any purpose like planning a wedding, for travel, for the purchase of a gadget, to meet medical emergencies, and so on. There is no restriction on usage. Can be utilised for any purpose as per the discretion of the borrower.

Quantum of loan

For Central/State Government Employees

Minimum quantum available is 25,000 and maximum quantum equal to 18 months' pension with a ceiling in the amount as mentioned below:

• For pensioners of age up to 72 years:  14 Lakhs
• For pensioners above 72 years but less than 74 years: 12 Lakhs        
• Above 74 years to 76 years: 7.50 Lakhs

For Defence Pensioners

• Minimum quantum available is 25,000
• Quantum for pensioners less than 56 years being 36 months pension with a maximum of 14 Lakhs
• For pensioners above 56 years quantum being 18 months pension with a slab wise ceiling as mentioned below:
  • Age greater than 56 years and up to 72 years: 14 Lakhs
  • Age greater than 72 years and up to 74 years: 12 Lakhs
  • Age greater than 74 years and up to 76 years:    7.50 Lakhs

EMI to Net Monthly Pension should not exceed 50% for both Central/State Government pensioners and defence pensioners.

For Family Pensioners (including defence pensioners)

• Minimum quantum: 25,000
• Maximum quantum: 18 months pension with a slab wise ceiling as mentioned below:
  • Age greater than 56 years and up to 72 years: 5 Lakhs
  • Age greater than 72 years and up to 74 years: 4.50 Lakhs
  • Age greater than 74 years and up to 76 years: 2.50 Lakhs

EMI to Net Monthly Pension should not exceed 33% of the pension for family pensioners.

Repayment

The repayment period is also fixed slab wise as per the age of the pensioner.

For Central/State Government Employees

• Age up to 72 years: 60 months
• Age above 72 years and up to 74 years: 48 months
• Age above 74 years and up to 76 years: 24 months

For Defence Pensioners

• Age up to 56 years: 84 months
• Age above 56 years and up to 72 years: 60 months
• Age above 72 years and up to 74 years: 48 months
• Age above 74 years and up to 76 years: 24 months

For Family Pensioners

• Age up to 72 years: 60 months
• Age above 72 years and up to 74 years: 48 months
• Age above 74 years and up to 76 years: 24 months

Standing instruction to debit pension account to recover monthly EMI should be given in case of all pensioners.

Margin

Nil

Processing charges

• 0.50% of the sanctioned loan amount for Central/State Government pensioners including family pensioner + GST.
• Nil charges for defence pensioners

Pre-payment charges

For pre-payment and part- payment 3% of the outstanding liability will be collected. If the loan is closed before the term by the proceeds of another loan then no pre-payment charges will be applicable.

Interest

11.95% to 12.45% p.a. (as on 14.05.2019)

Nature of facility

Term Loan or overdraft

Purpose

No restrictions on end use of the loan. Can be used for any purpose as per the discretion of the borrower.

Quantum of loan

• Minimum amount is 25,000
• For pensioners up to the age of 70 years: 18 months pension in case of Central/State Government Pensioners and 20 months for Defence pensioners with a maximum of 10 Lakhs.
• For pensioners above 70 years of age and up to the age of 75 years: 18 months pension in case of Central/State Government Employees and 20 months salary in case of Defence pensioners with a maximum of 7.50 Lakhs.
• For pensioners above 75 years of age: 12 months pension with a maximum of 5 Lakhs

Repayment

• Up to 60 months
• For pensioners above 75 years of age, the maximum repayment period is 24 months.
• Repayment should be fixed in such a way that EMI to Net Monthly Pension should not exceed 50%.

Margin

Nil

Interest

For both Term Loan and Overdraft at 11.45%

Guarantee

Third party guarantee of spouse eligible for family pension or guarantee of children who are employed specifically, in a government department or any other person with means equal to or more than the loan amount.

Processing charges

Nil

Documentation charges

500 + applicable taxes