SBI Personal Loan for Government Employees

Disclaimer: State Bank of India (SBI) is not a partner of MyMoneyMantra for personal loans. All information is for reference only. MyMoneyMantra has no affiliation, sponsorship, or connection with SBI for personal loans. For details on SBI personal loans, please contact SBI directly. 

Note: This page is just for information. We are not partnered with this bank and don’t offer its products & services.

Key highlights of the SBI Personal Loan designed for government employees are as follows:

Here is a quick list of features and benefits of personal loans by SBI for government employees:

Loan Amount: This SBI personal loan for govt employees can be borrowed for a minimum of Rs. 24,000 and a maximum of 24 times the net monthly income or Rs. 20 lakhs.

Lower Interest Rate: SBI personal loan interest rate for govt employees starts at 10.10% p.a.

Low Processing Fee: The SBI Xpress Credit scheme involves a processing fee of up to 1.50% of the loan amount, a minimum of Rs. 1,000, and a maximum of Rs. 15,000 + GST. The processing fee for Jai Jawan Pension Loan and Clean Overdraft is Nil.

Minimal Documentation: To avail of the swift disbursal of SBI personal loans for govt employees, you need to ensure the 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.

Experience: You must have a minimum work experience of 1 year.

Repayment Period: The loan tenure can be between 6 months to 6 years or up to a residual job period.

Collateral: No loan security is required to apply for an SBI loan for government employees.

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

Eligibility: Government employees working with the following departments can apply for an 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 corporations, having a business relationship with the Bank as well as other Corporations, and fulfilling the bank’s terms & conditions can also apply.
• The applicant should be a minimum of 21 years old, and the maximum age limit is 58 years for personal loans for government employees in SBI. 
• You need to have a minimum net monthly salary of Rs. 15,000 from the departments mentioned above, to be eligible for the SBI Xpress Personal Loan. If you are looking for a SBI personal loan for a 10000 salary, it is not possible. 
• The EMI should not be more than half of the net monthly income for SBI personal loans for government employees.
• The applicant can also benefit from the overdraft (OD) facility. The OD can be availed for Rs. 5 lakhs to Rs. 20 Lakhs, or 24 times the net monthly income. The OD is linked with DP (drawing power).
• The School Teachers can borrow a maximum of 12 months of Gross Salary under both Personal Loan and SBI Overdraft facilities.

After one year of your Xpress loan, you can apply for a second Xpress loan. Only those with regular repayment records would be eligible for the same. You cannot borrow more than two personal loans in 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 of 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.

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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SBI offers various personal loan schemes for government employees. It is useful to check your loan amount eligibility and EMI amount before applying for an SBI personal loan. For this purpose, you can use SBI Personal Loans for Govt Employees Calculator. Use the SBI Personal Loan EMI Calculator under the Tools & Calculators section on SBI’s website. Just enter the principal loan amount, annual rate of interest, and loan tenure in the EMI calculator to know the EMI to be paid with the overall cost of the loan.