Loans for Defence Personnel
Many banks in India have come up with special loan schemes for the army and defence personnel of the nation. These loan schemes offer finances to defence personnel's to suit their loan requirements. There are different kinds of loans especially for the defence personnel including personal and home loans. Let us look into loans for defence personnel in India.
Oriental Bank of Commerce Loan to Defence Personnel
Oriental Bank of Commerce is well known for its wide range of unique and efficient financial products. The bank offers a special loan scheme for defence personnel in India. The loan to Defence Personnel by OBC is a personal loan scheme that offers finance to meet personal expenses incurred from weddings, family function, education and more. Working Defence Personnel with minimum of one year of service, personnel of paramilitary forces like BSF, ITBP, CRPF, Coastal Guards, CISF, Assam/ J&K Rifles are eligible for the loan. Listed below are the main features and fees/charges of the loan:
- Amount of loan- 15 times of Net take home monthly salary subject to following ceilings:
- Maximum upto Rs.3 lakh for commissioned officers
- Maximum upto Rs.2.50 lakh for junior commissioned officers
- Maximum upto Rs.1.50 lakh for non-commissioned officers
- Security- Charge over assets acquired out of the loan.
- Repayment- Equal to the period of stay (within 36 months).
- Processing fee- 0.50% of the loan amount subject to a minimum of Rs.500.
- Margin- Nil
- Documentation charges- Nil.
SBI Shaurya Home Loan
SBI Shaurya Home loan is a home loan scheme designed specifically for the army and defence personnel of the nation. Only defence and army employees are eligible for this home loan scheme. The defence personnel's can avail benefits such as low rate of interest and various other benefits from this home loan that they probably wouldn't get in regular home loans. Long tenure and easy repayment option is another added advantage of the home loan scheme. Listed below are the main features and fees/charges of the loan:
- Interest rate benefit- 5 bps lower than normal interest rate by SBI.
- Processing fees of the loan- Waived.
- Maximum age of applicant for repayment- 75 years
- Maximum loan term- 30 years
- Other benefits- Option to switch over from other bank home loan.
These are some of the famous loans for defence personnel in India. Though there aren't many loan options that cater only to the defence personnel, many banks offer special rates and additional benefits in their regular loan schemes for the defence personnel.
FAQs on Loans for Defence Personnel
- Which are some of the banks in India who offer loans for defence personnel?
Various banks in India offer loans for defence personnel. Some of the banks who offer this type of loans are HDFC Bank, Bank of India, Saraswat Bank, Axis Bank, Andhra Bank, etc.
- How can I apply for a loan for defence personnel?
You can apply for a loan for defence personnel by visiting the official website of the bank from whom you wish to avail the loan. You will have to fill out the form and provide relevant documents. If you meet the eligibility criteria, your loan application will be sanctioned and the loan amount will be disbursed to your bank account.
You can also apply for this type of loan on the BankBazaar official website.
You can also apply for this type of loan offline by visiting the nearest branch of the bank from you wish to avail this loan.
- I am a retired defense personnel. Can I apply for a loan for defence personnel?
Yes, most of the banks do allow retired defense personnel to apply for a loan for defence personnel. However, before applying do check the other eligibility criteria.
- I belong to Navy. Can I apply for a loan for defence personnel?
Yes, this type of loan can be availed by anyone working in the defence sector including Navy.
- What will be the rate of interest charged?
The rate of interest will vary from bank to bank. Generally, the rate of interest may vary between 11.75% to 15.10%. You will have to thoroughly compare the loan for defence personnel offered by various banks and then apply for the one which you feel will be suitable for you and as well as easy for you to repay your EMI in a timely manner.
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