Personal Loan for Government Employees


Government employees are one of the most preferred types of borrowers for banks and financial institutions due to the security of the job and regular source of income, as compared to other types of salaried borrowers. Public sector banks usually cater government employees with dedicated loan schemes as compared to private banks and financial institutions.

Moreover, if the borrower have an existing relationship with the bank or tie-up arrangements such as check-off or withdrawing the salary through the bank, then the interest rate is even lower than usual.

PL for Government Employees at a glance
Interest Rate 10.60% - 24% per annum
Maximum Tenure 60 Months
Loan Amount Upto Rs. 40 Lacs

Personal Loan Offers for Government Employees

Banks/FIs Annual Interest Rates Maximum Amount
SBI Personal Loan 11.25% - 14.75% Rs. 15 Lacs
HDFC Personal Loan 15% - 20.99% Rs. 40 Lacs
Axis Personal Loan 15.50% - 24% Rs. 15 Lacs
ICICI Personal Loan 10.99% - 22% Rs. 20 Lacs
YES Personal Loan 14.50% - 15.90% Rs. 20 Lacs
Indusind Personal Loan 11.25% - 23% Rs. 15 Lacs
Bajaj Finance Personal Loan 12.99% Rs. 25 Lacs
UBI Personal Loan 10.60% - 12.10% Rs. 15 Lacs
Citi Bank Personal Loan 10.99% - 17.99% Rs. 30 Lacs
IDBI Personal Loan 12% - 13.50% Rs. 10 Lacs
Oriental Bank Personal Loan 11.50% Rs. 10 Lacs
Canara Personal Loan 10.90% - 13.90% Rs. 3 Lacs

SBI Personal Loan for Government Employees

State Bank of India (SBI) offers personal loan to permanent government employees including employees of government PSUs, upto Rs. 15 Lacs with annual interest rate ranging between 11.25% to 14.75% under SBI Xpress Credit Personal Loan scheme. A borrower who can provide the check-off arrangement to the bank, can avail the low interest rate of 11.25% to 14.25% per annum as compared 11.75% to 14.75% to a borrower who cannot provide check-off arrangement.

YES Bank Personal Loan for Government Employees

YES Bank offers a dedicated scheme for government employees, called “YES Sarkar”. Under this scheme, a government employee can borrower take personal loan of upto Rs. 20 Lacs depending upon the location and income criteria which goes as high as Rs. 50,000 per month. As for the interest rate is concerned, 14.50% to 15.90%, a bit higher than what is being applicable under regular personal loan offered by yes bank.

IDBI Bank Personal Loan for Government Employees

IDBI Bank offers personal loan of minimum Rs. 50,000 to maximum Rs. 10 Lacs to government employees. The interest rate applicable on the loan amount, varies depending upon the credit score of the borrower. The borrower can avail low interest rate of 12.25% per annum if he/she is holding a credit score of 801 points or above. If the credit score if between 751 to 800 points then annual interest of 12.50% will be offered. Whereas, the ones with credit score between 700 to 750 points will be offered 13.50% interest rate.

Oriental Bank of Commerce Personal Loan for Government Employees

Oriental Bank offer personal loans of upto Rs. 10 Lacs for government employees with interest rate of 11.50% per annum. If the borrower has an existing salary account with OBC, then the monthly income of Rs. 10,000 is eligible to avail the loan. However, if the borrower doesn’t have salary account in OBC, then the minimum monthly income of Rs. 50,000 is necessary to avail the loan.

Canara Bank Personal Loan for Government Employees

Canara Bank offers personal loans of upto Rs. 3 Lacs to government employees. The interest rate varies depending upon if you have salary tie-up arrangements with the bank or not. A borrower with salary tie-up with Canara Bank, can avail low interest of 12.90% as compared to 13.90% applicable for borrower who doesn’t have any salary tie-up arrangement with the bank. However, if the borrower is an employee of BSNL, then he/she can avail personal loan at only 10.90% annual interest rate.

Eligibility Criteria

  • Permanent employees working at Government organizations (Central / State), PSUs, Central/State Government undertakings, Defence, armed personnel, Ministries/Departments under the Ministries, officers in All India Services, Teaching & non-teaching staff at Government Schools & Colleges.
  • Applicant should be at least 21 years at the time of loan application.
  • The maximum age should not be more than 58 years or the retirement age in the organization, at the time of loan maturity.
  • Applicant must be earning a minimum monthly income of Rs. 20,000 in usual cases. However, few banks set a low income criteria if the borrower have an existing relationship with the bank.


  • Proof of Employment
  • Income proof
  • Last 6 months bank statement
  • Last 6 months salary slip
  • Last 2 years' ITR
  • KYC Documents with passport photographs
  • Documents for salary tie-up arrangements, if opting for it.
  • Any other documents which may be required from case to case.