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.
