Personal Loans by Public Sector Banks

Name of the Scheme	Processing Fee	Penal Interest	Prepayment Charges
Xpress Credit Personal Loan	1% of the loan amount plus GST	2% p.a.	3% on prepaid amount
SBI Pension Loan	Nil for defense pensioners 0.5% of loan amount plus GST for state and central government employees	-	3% on prepaid amount
Xpress Power	1% of the loan amount plus GST	-	-

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Central Bank of India Personal Loan - Features

1. Known as Cent Personal Loan scheme, this loan is available to permanent employees of government institutions, central and state government, railways, hospitals, etc., who have completed one year of service.
2. This loan is also available to permanent or confirmed employees of Indian/multinationals who have completed at least 3 years of service.
3. The maximum loan amount that you can avail under this scheme is Rs.20 lakh.
4. The interest rate on the Cent Personal Loan Scheme is linked to the Marginal Cost of Funds based Lending Rate (MCLR).

Punjab National Bank Personal Loan - Features

1. Offers personal loans under 3 categories, one for the general public, one for doctors, and one for pensioners.
2. The personal loan for public can be availed by permanent employees of state/central governments, reputed companies or institutions including colleges, schools, hospitals, autonomous bodies, etc.
3. The loans can be availed in the form of term loan or overdraft.
4. To be eligible for the loans, you need to hold a salary account with Punjab National Bank.

Name of the Scheme	Margin	Processing Fee	Documentation Charges
Personal Loan Scheme for Public	Nil	1.80% of loan amount	Rs.270 to Rs.450
PNB Doctor's Delight	Nil	0.90% of loan amount plus taxes	Rs.450 plus taxes
Personal Loan to Pensioners	Nil	Nil	Rs.250

Bank of Baroda Personal Loan - Features

1. Employees of private firms or government bodies with minimum one year of continuous service are eligible for this loan.
2. Businessmen or self-employed individuals can also avail this loan provided that they are in the same line of business for at least one year.
3. The maximum amount of loan that you can avail is Rs.10 lakh in metro/urban areas and Rs.5 lakh in semi-urban and rural areas.
4. To be eligible for the loan, the borrower should be aged at least 21 years while the maximum age limit is 60 years for salaried applicants and 65 years for non-salaried applicants.

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Union Bank of India Personal Loan - Features

1. Offers loans under different categories for salaried individuals working in private firms, non-salaried individuals, government employees, and top executives of accredited government of India (GoI) ministries.
2. To avail personal loans from Union Bank of India, you need to provide a creditworthy guarantor. However, you need not provide any security.
3. A maximum loan of Rs.15 lakh can be availed as a loan from Union Bank of India but this will depend on the type of scheme the individual is eligible for.
4. States in the North-Eastern Region are exempt from providing Aadhaar number whereas for other states, it is mandatory in addition to providing mobile number and PAN.

Name of the Scheme	Processing Charges	Margin	Loan Amount	Repayment Tenure
Union Personal Scheme for Salaried Individuals other than Government Employees	0.50% of the loan amount plus GST (Rs.500 onwards)	Nil	Up to Rs.5 lakh for new borrowers Up to Rs.10 lakh for existing borrowers	60 months or one year before retirement, whichever is earlier
Union Personal Loan - Non-salaried	0.50% of the loan amount plus GST (Rs.500 onwards)	Nil	Up to Rs.5 lakh for new borrowers Up to Rs.10 lakh for existing borrowers	60 months or up to the age of 60 years, whichever is earlier
Union Personal for Employees of KVS/NVS/ Accredited GoI Ministries/ Home and Defense Ministries and Officers in All India Services and the top executives	Nil	Nil	Up to Rs.10 lakh	60 months or one year before retirement, whichever is earlier
Personal Loan Under Special Retail Lending Scheme for Government Employees	Nil	Nil	Up to Rs.10 lakh	Term Loan - 60 months or one year before retirement, whichever is earlier Overdraft - 55 years or 5 years before retirement, whichever is earlier

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Canara Bank Personal Loan - Features

1. Also known as Canara Budget, this personal loan can be availed to fulfil all genuine personal or domestic needs.
2. Only people who hold a salary account with Canara Bank can avail this loan. A processing fee ranging between Rs.1,000 and Rs.5,000 will be applicable.
3. The minimum monthly income of the applicant should be Rs.10,000 to avail this loan.
4. The maximum amount of loan that you can avail as a personal loan from Canara Bank is Rs.3 lakh.

Indian Overseas Bank Personal Loan - Features

1. To be eligible for this loan, your income should be at least Rs.5,000 and your age should be below 60 years.
2. This loan can be used to purchase consumer durables including electrical and electronic gadgets, metal and wooden furniture, etc.
3. The articles purchased with the loan will be hypothecated to the bank.
4. You need to provide a suitable third-party guarantor to avail this loan.

Maximum Loan Amount	Margin	Processing Charges	Tenure
Up to Rs.15 lakh	Nil	0.40% to 0.50%	84 months

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FAQs on Personal Loans by Public Sector Banks

• What kind of personal loans do India's Public Sector Banks offer?  

  Individuals in India can apply for personal loans from Public Sector Banks (PSBs) for a range of reasons, including debt consolidation, weddings, medical emergencies, schooling costs, house improvements, and vacation.  

• Who can apply to Public Sector Banks for a personal loan?  

  While specific PSBs may have slightly varied eligibility requirements, in general, anyone between the ages of 21 and 65 years who has a reliable source of income and a clean credit history is welcome to apply. Additionally, certain banks might have particular income criteria. 

• What is the maximum loan amount that a Public Sector Bank offers?  

  The approved loan amount is determined by a number of criteria, such as the applicant's income, credit history, ability to repay the loan, and internal bank policy. Personal loans from PSBs typically range in amount from Rs. 10,000 to Rs. 25 lakhs.  

• How long does a public sector bank personal loan take to be repaid?  

  PSBs often offer personal loans with repayment terms ranging from one to five years. On the other hand, for particular loan amounts or objectives, certain banks might provide lengthier repayment terms. 

• Are personal loans refundable?  

  Generally speaking, they are accepted with the borrower's income and credit history in mind. It is possible to transfer your personal loan to a different individual. Such services are offered by a few PSB Banks and Non-Banking Financial Companies. 

• Can I pay back my Public Sector Bank personal loan early? Does prepayment carry any fees?  

  Absolutely, most PSBs permit borrowers to fully or partially prepay their personal loans. Prepayment fees, on the other hand, might be assessed by certain banks and would rely on the loan arrangement conditions and the bank's policies.  

• How long does it take a Public Sector Bank to process an application for a personal loan?  

  Applications for personal loans are processed differently by PSB. The processing time for a loan application might range from a few days to several weeks, contingent on several elements such document verification, credit evaluation, and bank internal protocols. 

• What occurs to my personal loan from a Public Sector Bank if I fail to make an EMI payment?  

  The bank may impose late payment penalties and penal interest if you fail to make an EMI payment on your personal loan. It may also have a detrimental effect on your credit score and future borrowing prospects.  

• How can I apply to a Public Sector Bank for a personal loan?  

  Applying for a personal loan from a PSB can be done online using the bank's website or mobile app, or by going to the bank's branch and completing the application and providing the necessary paperwork. Online applications could be more convenient and process information more quickly. 

• Once I accept a personal loan, can I cancel it?  

  No, once the funds are credited to your account, you are unable to withdraw your application for a personal loan. Nevertheless, you still have time to withdraw your application for a personal loan before the funds are released. Even after the financial lender has accepted your application for a personal loan, you are free to withdraw it. 

• What paperwork is needed to apply to Public Sector Banks for a personal loan?  

  Documents proving identity (Aadhaar card, passport, or driving licence), evidence of address (utility bills, rental agreement), proof of income (pay stubs, income tax returns), proof of bank account, and passport-sized photos are usually needed. 

• What occurs to my personal loan from a Public Sector Bank if I fail to make an EMI payment?  

  The bank may impose late payment penalties and penal interest if you fail to make an EMI payment on your personal loan. It may also have a detrimental effect on your credit score and future borrowing prospects.