How Indian Government employees can apply for online Personal Loans?

Over the last few years, India's banking and financial services industry has evolved considerably. In the past, getting a loan was a tough nut to crack. In those days, people relied on their friends, relatives, or non-registered moneylenders for their urgent financial needs.

However, with several banks and non-banking financial corporations (NBFCs) offering different types of loans in India, things have changed drastically. The easy availability of loans, including home loans, car loans, and consumer durable loans, has contributed significantly to people's enhanced lifestyles and extraordinary purchasing powers.

Another type of loan which has become hugely popular in recent times is a personal loan. An increasing number of people have started availing of personal loans to meet their urgent monetary requirements. And after seeing the massive demand for such loans, several banks and NBFCs have begun offering personal loans with enhanced features and benefits to attract more customers.

Features & Benefits of Personal Loans

Let’s read about the features and benefits of a personal loan that make it a viable option for meeting urgent financial requirements:

• Easy to get
  
  With the advancement of technology, personal loans have become very easy to get. Unlike yesteryears, when borrowers had to stand in long queues to apply for loans, they can now apply online for a personal loan by simply visiting their website or downloading personal loan apps on their smartphones.
   
• Quick processing
  
  Personal loans are processed quickly by lenders. Many lenders approve personal loan applications and disburse the loan amount within 24 to 48 hours. Borrowers can also avail themselves of pre-approved personal loans, which are processed instantly by lenders.
   
• Easy eligibility criteria and simple documentation
  
  The eligibility criteria and documentation process for personal loans are straightforward. Lenders usually ask only for some basic eligibility requirements regarding age, citizenship, monthly income, and credit score. The documents required for a personal loan include age proof, identity proof, address proof, and bank statements.
   
• No restrictions on end-use
  
  Since personal loans are multi-purpose loans, there are no restrictions on their end-use. It means you can use them to deal with medical emergencies, fund a vacation, plan a wedding, pay for college, renovate your home, or make large purchases.
   
• Flexible repayment tenure
  
  Another thing that has made personal loans popular is their flexibility in loan tenure. Borrowers can choose their personal loan tenure as per their repayment capability. Usually, personal loan tenures range between 12 and 60 months. Few lenders provide personal loans with even higher tenures, depending on certain conditions.
   
• No need for collateral
  
  Unlike home loans and car loans, personal loans are collateral-free loans. It means that the borrowers are not required to pledge their personal or professional assets to qualify for financing. All they need to do to avail of a personal loan is meet the simple eligibility criteria of the lender and have a good credit score.

Who can avail of a personal loan?

Anyone who can fulfil the lender's eligibility criteria and has a good credit score can apply for a personal loan. Usually, lenders provide personal loans to both salaried and self-employed individuals. However, the eligibility criteria may vary from one lender to another.

• Salaried professionals
  
  Those employed and earning a regular salary every month are called salaried professionals. Such individuals earn a fixed income every month, so they can easily get personal loans. Usually, lenders ask for a minimum salary of Rs. 20,000 per month to provide personal loans to salaried professionals.
  
  A salaried professional can be working with a private employer or in a Public Sector Undertaking (PSU). Those working in PSUs are termed Government employees.
   
• Self-employed
  
  Those who have a business or organise their own work are known as self-employed people. Unlike salaried professionals, they do not have a fixed income. That is why some lenders refrain from providing personal loans to self-employed individuals. However, if they have a good credit score and fulfil the minimum annual turnover criteria, they can get a personal loan.

Personal loans for Government Employees

Many lenders provide special personal loans forgovernment employees. These loans are available exclusively for those who are employed with the Government or a Public Sector Undertaking (PSU). Examples of such employees include railway employees, PSU bank employees, police workers, officers, etc.

So, suppose you're a government employee. In that case, you can avail of this personal loan and meet all your financial requirements, be it for a medical emergency, wedding, travel, education, or a big-ticket purchase.

Below is the eligibility criteria for personal loans for Government employees:

• You need to be employed with the State or Central Government of India
   
• You must be a citizen of India
   
• You need to be aged between 22and 58 years
   
• You must have a minimum work experience of two to three years as a government employee
   
• Your monthly income should be at least Rs. 20,000

The documents required to avail of a personal loan for a Government employee include:

• Proof of address
   
• Proof of identity
   
• Government employee ID card
   
• Bank statements
   
• Salary slips

Note that the above-mentioned eligibility criteria and documents are indicative. They may vary from one lender to another.

How to apply for a personal loan for Government employees?

As a Government employee, you can apply for a personal loan and get a quick disbursal from the lender. To apply for a personal loan for Government employees, you can follow the steps mentioned below:

Step 1 – Visit your preferred lender's branch office to apply for a personal loan. You can also visit the lender's website or download its smartphone app to apply for a personal loan online.

Step 2 – Check your eligibility to avail of a personal loan for a Government employee. If you’re eligible, fill up the loan application form

Step 3 –Choose your loan amount and loan tenure

Step 4 – Submit the required documents to complete your loan application. If you’ve applied for an online personal loan, you can upload the documents on the lender’s website or smartphone app

Step 5 – After receiving your loan application and documents, the lender will initiate a verification process

Step 6 – After successfully verifying your documents, the lender will disburse your loan amount directly to your savings bank account. This may take 24 to 48 hours. If you've applied for a pre-approved personal loan, you can enjoy instant disbursal of the loan amount.

The final words

There are several benefits of availing of a personal loan for Government employees. These loans come with quick disbursal and lower interest rates than standard personal loans. However, personal loan interest rates vary from lender to lender, and hence, it's crucial to choose the right lender.

When choosing your lender, you should consider various factors, including personal loan interest rate, eligibility criteria, maximum loan amount, and repayment flexibility.

With Poonawalla Fincorp, you can avail of a personal loan at a competitive interest rate. Our loans come with several additional benefits, such as flexibility to choose your loan tenure, easy eligibility criteria, and a 24x7 customer support facility.