Punjab Gramin Bank (PGB) which is a business arm of the Punjab National Bank is an amalgamation of three RRBs. With most of its branches in rural areas PGB plays a vital role in uplifting the living standards of rural people. PGB has around 264 branches operating in 3 districts of Punjab. The bank offers various types of deposits and loan schemes.
Purpose – How can PGB’s personal loan scheme be put to use
The Punjab Gramin Bank takes care of the financial requirements of people in the rural areas. The purpose of this personal loan is to help the borrower meet all types of personal needs. Money may be required for children’s education expenses, medical expenses, wedding expenses, or even travel (domestic and foreign) expenses.
Eligibility criteria for Punjab Gramin Bank (PGB) Personal Loan
In order to avail the personal loan scheme from Punjab Gramin Bank, the borrower has to fulfill the following eligibility criteria as set by the bank:
- Only PGB account holders with a 6-month old account are eligible for Personal Loan.
- Minimum net monthly income should be Rs. 12500 per month for availing loan/OD at Urban centers
- In case of semi-urban and rural centers, around Rs. 10000 should be the net monthly income for availing Loan/OD.
- Defense personnel from Military Station Headquarters, Border Security Force, Central Reserve Police Force, Central Industrial Security Force, Indo Tibetan Boarder Police, etc. In case the borrower belongs to any of the mentioned services, he must have been retired for more than 24 months.
- Confirmed or permanent employees of Central/State Government/ PSUs and all reputed companies/ Institutions
- Individuals working with schools, colleges, Universities, autonomous bodies, Hospitals/Nursing Homes, who are drawing salary through accounts maintained with PGB branches
- People working with employers having check off facility with Punjab Gramin Bank are also eligible.
- Professionally qualified practicing Doctors with an annual income for Rs 3 lac, and having an account with GB at least for the last six months or above.
- Doctors should be have paid taxes for the last three years and the Income Tax Returns, duly receipted by Income Tax Office should be available for the Bank
Features and Benefits of PGB Personal Loan Scheme
Here are some of the benefits and features of the personal loan scheme offered by Punjab Gramin Bank:
- Minimum amount of loan - Rs. 50000/-
- Maximum amount of loan - Rs. 4,00,000 or 20 times monthly net salary whichever is lower depending upon the repaying capacity
- Rs. 5,00,000 loan amount for salaried persons who have completed 3 years’ service in the present organization & drawing net monthly salary of not less than Rs.30,000/-
- The bank charges a nominal rate of interest for the personal loan scheme. The interest rate may change as per the bank’s discretion.
- The loan amount (principal and interest) can be repaid in maximum 60 equated monthly instalments (EMIs).
- Loan repayments commence one month after loan disbursement
- Overdraft limit is adjusted within a maximum period of 60 months by reducing Drawing Power (DP) equivalent to EMI amount at the beginning of every month.
- For defense personnel, the loan can be repaid in maximum 36 equated monthly installments or remaining period of stay at the particular posting, whichever is lower
Documents Required for Punjab Gramin Bank (PGB) Personal Loan
The individual may require to produce the following documents in order to avail the loan:
- Valid government approved ID card (Driving license, PAN card, Passport, etc.)
- Proof of income (bank statements, IT returns, etc.)
The bank may also require additional documents for verification, depending on the borrower.