Things to know before availing a personal loan for government employees

10:36 PM RAWAT 0 Comments

Privatisation has been on the go in India, especially in the last decade. However, despite its popularity, the public sector in the country hasn’t lost its appeal. With more and more people getting recruited in government jobs, financial institutions are focusing on meeting their funding needs through options like a personal loan for government employees.

It is because although government jobs offer financial security, the need to meet unforeseen funding requirements remains. These government loans thus serve as a cushion at times of urgency and help cover up all types of expenses.

A medical emergency, funding for your child’s overseas education, travelling abroad, paying bills during marriages, etc. are some of the expenses that strain your finances as they require a hefty sum. A personal loan of up to Rs. 25 Lakh can help meet these big-ticket expenses. Thus, if you are employed with a public sector job, a personal loan for government employees can serve your purpose the best.

However, before applying for the same, you must know a few essential details related to personal loans.

Things a government employee should know before availing a personal loan:

Quick and easy unsecured financing option

A personal loan is an unsecured loan, and a government employee does not need to pledge or mortgage collateral to avail it. Getting a quick personal loan thus becomes easy as the processing time for personal loan reduces due to no property verification involved.

Some lenders, for example Bajaj Finserv, also make the application and approval process hassle-free by approving the loan amount within 5 minutes of application. After the approval, you can also get the approved loan amount disbursed into your account within 24 hours.

The lender also introduces exclusive pre-approved offers for their existing customers that enable quick and easy processing of loan applications. The pre-approved offer is available on secured loans like mortgage loans and unsecured loans like personal loans and business loans. You may check your pre-approved offer by providing a few simple details like your name, contact number, etc.

Simplified eligibility and documentation

Personal loan eligibility criteria is another aspect a government employee needs to look out for before availing this loan. The unsecured nature of personal loans shifts the focus to an applicant’s eligibility. However, a dependable source of income for government employees also simplifies their eligibility requirements.

As for the document requirement, proof of income suffices to establish their financial stability. So, the eligibility criteria and document required to avail a personal loan for government employees remain minimal.

Along with meeting the eligibilities, make sure to keep your credit score high, which will represent your creditworthiness to your lender and help you avail the loan with better terms.

Competitive rates of interest

A government employee has a steady source of income and is considered to have high creditworthiness due to his/her association with public sectors. Financial institutions thus offer low personal loan interest rates to them, which is quite attractive.

So, depending upon your remaining career and per month income, your employment in the government sector can fetch your loan at competitive rates of interest. Make sure to gather information about the interest rates different financial institutions offer. Apply to the one offering personal loan for government employees at affordable interest rates and processing fees. Also, check other charges like foreclosure & part-prepayment charges before applying.

Repayment options

Availing a personal loan that offers flexible repayment option is rewarding as you get to plan your finances for the future. Some of the renowned financial institutions offer personal loans with a flexible repayment tenor of 12 to 60 months.

Also, you can use foreclosure or part-prepayment facility to repay the loan amount at any time before the tenor ends. It is usually beneficial when you have access to a large amount of money, and you want to reduce the debt burden. Use it to part-prepay the loan or foreclose the loan account to save on interest payment.

Avail the best deal on a personal loan for government employees by considering all the things mentioned above. Use it to tide over any emergency funding needs without affecting your savings.