State Bank of India (SBI) is the biggest banking entity in the country and the financial institution of choice for millions of citizens. SBI already offers a wide range of financial services and products to customers including savings accounts, current accounts, FDs (Fixed deposits), home loans, auto loans, personal loans, business loans, loans against property and many others. While SBI has a well-balanced portfolio of offerings for customers from all walks of life, there are some special products tailored to benefit government employees.
State Bank of India has introduced an exclusive SBI Privilege Home Loan offering for government employees. On its official Twitter account, State Bank of India has stated that this loan will offer special advantages to both State and Central Government employees in India. SBI has been consistently introducing multiple advantages and special benefits for its customers, particularly in the home loan segment. Most people aspire to buy their own homes and this is where SBI offers home loans with several attractive offers and benefits.
For those who are central or state government employees, this special product from SBI is certainly a welcome development by all means. There are several services that are available under the Privilege Home Loan scheme. This helps in keeping EMIs cheaper as far as home loans taken by government employees are concerned. Both central and state government employees can get home loans at more affordable costs overall. The loan applies for those who are employees of the state and central government. This also includes public sector banks, other individuals with pensionable service and those employed with public sector undertakings (PSUs) of the central government.
The amount of the loan will be fixed on the basis of aspects like the repayment ability of the borrower, his/her income, assets, age and liabilities along with the cost of the proposed flat/home in question. The special rates of interest that are offered by State Bank of India for government employees can be mapped below:
|Category||More than Rs. 10 lakh-30 lakh (with check off)||More than Rs. 30 lakh-75 lakh (with check off)||More than Rs. 75 lakh-Rs. 50 crore (with check off)||More than Rs. 10 lakh-30 lakh (without check off)||More than Rs. 30 lakh-75 lakh (without check off)||More than Rs. 75 lakh-Rs. 50 crore (without check off)|
|Women||8.75-8.85% per annum||8.90-9% per annum||9-9.10% per annum||8.75-8.85% per annum||8.90-9% per annum||9-9.10% per annum|
|Others||8.75-8.85% per annum||8.90-9% per annum||9-9.10% per annum||8.80-8.90% per annum||8.95-9.05% per annum||9.05-9.15% per annum|
The rate of interest will vary depending on the customer’s risk profile and also the LTV (loan to value) ratio.
Some of the key advantages of the SBI Privilege Home Loan for government employees include the following:
- Low rates of interest on home loans
- Absolutely zero processing fees and charges
- Zero pre-payment penalties on home loans
- Zero hidden charges and other unknown costs
- Repayment tenors up to 30 years
- Interest charges on the daily reducing balance system
- Special interest concessions for female borrowers
- Special concessions on interest in case the check off is given
The eligibility criteria stands as follows for the SBI Privilege Home Loan scheme:
- Borrower has to be an Indian resident.
- The minimum age of the borrower has to be 18 years.
- The maximum age of the borrower has to be 75 years.
- The tenor of the loan can be up to 30 years.
This exclusive home loan will certainly enable Government employees to seamlessly purchase their dream homes and repay it over a longer period of time. This is a major advantage since the longer tenor equates to more manageable EMIs and more flexibility in repaying the loan amount. Government employees can properly plan out the entire repayment procedure and keep pre-paying their home loans whenever they get any bonus or surplus funds in hand. However, the lock-in period has to be ascertained before one starts pre-payment or wishes to close out the loan. Apart from the above mentioned eligibility criteria, there are other factors that will be evaluated by the lender including the borrower’s credit score, age, income, repayment ability, current debt, background, professional profile and number of dependents. A good credit score always helps in getting one’s home loan sanctioned swiftly.
SBI Personal Loans for Government employees
State Bank of India (SBI) also offers personal loans for Government employees. This is known as SBI Xpress Credit Loan. Under this financial product, government employees can easily get loans up to Rs. 15 lakh with a low rate of interest ranging between 12.95-15.05%. The scheme is highly convenient and flexible in terms of repayment and government employees only require their ID card for getting the loan processed. Retired pensioners who have worked in PSUs and government organizations are also eligible to apply.
This another innovatively tailored financial product which caters to the needs of government employees and SBI (State Bank of India) is expected to maintain high growth in these categories courtesy special financial schemes like these.