October 3, 2022
personal loan for government employees

personal loan for government employees

When you plan your finances, you are inevitably going to need funds for your child’s higher education, planning a world tour, a marriage, or dealing with unexpected medical costs. For such a large sum of money, a Personal Loan is your best bet. With quick disbursal and freedom to spend on anything, taking out a Personal Loan is a very popular choice. A Personal Loan for government employees is a collateral-free loan made by banks and non-bank financial institutions against their pay Santander retirement interest only

Therefore, if you need personal financing to cover an urgent expense, all you require is a loan at an attractive interest rate. For government officials, this option is particularly accessible. Moreover, as a government employee, you will be guaranteed a steady income and job security in the long run. For this reason, applying for a Personal Loan for government employees is a simple process.

Follow these tips to obtain quick personal finance for government officials:

Apply online

Nowadays, applying online can save you the time and trouble of visiting different lenders. The lender’s website will provide information regarding the paperwork required. Your loan application will be approved quickly once you submit the necessary documents. Government employees must meet the criteria for minimum salary for a Personal Loan to be approved.

With an instant Personal Loan, your application will be approved within minutes from the moment you submit it. It is, however, critical that you provide accurate information on your loan application. Upon approval, the loan amount will be transferred directly into your bank account.

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Maintain a high CIBIL score

It is crucial to have a good CIBIL score to obtain a quick Personal Loan. CIBIL scores range between 300 and 900. The higher your score, the greater your chances of obtaining a loan. An excellent credit score is one exceeding 750 points. A good CIBIL score reflects your creditworthiness, and it indicates your ability to pay back the loan on time.

There are steps you can take to increase your credit score within months if it is low.

  • Paying your credit card bills every month will help you improve your CIBIL score. 
  • You should avoid defaulting on outstanding or past due repayments. 
  • You should monitor your credit history regularly for any inaccuracies or discrepancies.

The lender checks your CIBIL score when you apply for a loan, be it personal or otherwise. The lender approves or rejects your application based on your credit score. Therefore, you must comprehend how your CIBIL score impacts your ability to obtain Personal Loans. 

Check your eligibility for the loan before applying.

For your loan application to be approved, you must meet all eligibility requirements set forth by the lender. There are usually several eligibility criteria, such as your age, income level, employment history, CIBIL score, etc. Government employees are normally eligible based on the following criteria:

  • Profession: The majority of banks offer Personal Loans to all salaried employees. However, government employees are more easily qualified for these loans. The loans are available to employees of public sector units (PSU), central and state government departments, and government-run schools and colleges.
  • Age: Almost all banks in the market require that the applicant be over 21 years of age. A borrower must be younger than 60 at the maturity of a loan.
  • Income: Banks also require borrowers to meet specific income requirements. Generally, the minimum salary for Personal Loan applicants is INR 15000 per month. However, some banks provide some flexibility in this regard. However, the loan applicant is required to have an account at the same institution.
  • Financial stability: The borrower should not have a large debt load concerning other loans and liabilities. The applicant must ensure that his/her take-home pay does not fall below 30% of his or her gross income after paying off any loan EMIs.
  • Employment Tenure: Banks also consider the duration of the individual’s employment before approving a loan. Obtaining a loan is not an issue for government employees who have been employed for at least a year. Individuals newly appointed to government service may need to inquire about lending policies with their bank.
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Reduce your debt-to-income ratio

A debt-to-income ratio indicates how much of your income is used to pay your EMIs. You should keep this ratio at 45 percent or less. You should not pay more than 45% of your monthly income. The higher the debt-to-income ratio, the greater the likelihood that you will be unable to repay new EMIs. This can cause your loan application to be rejected. 

In conclusion

Applying for a Personal Loan for government employees is easier if they meet the basic criteria. Since banks approve and offer lower interest rates for salaried individuals, government employees have an advantage here. 

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