Personal loans are short term, unsecured financing options offered by financial institutions to help a borrower meet their immediate monetary requirement. It is offered on the basis ofimportant eligibility criteria such as income, credit history, repayment capacity, employment history and stability etc.
Employment stability plays a crucial part in a personal loan because a borrower does not have to pledge any collateral against the sum they receive as a credit. Lending institutions rely on a borrower’s income and financial stability to repay the debt. That makes individuals with a stable and high-paying job more likely to get approved for a personal loan.
Government employees are one of the primary candidatesto avail personal loans to mitigate their emergency financial requirements. They can leverage additional benefits and features offered bythe public sector to further ease up repayments and other aspects of the loan.
There are several ways how personal loan for Govt employees can help them fulfil their financial need. Let’s look at certain scenarios where they can utilise the loan amount.
- Home renovation or construction –
Personal loans for government employees are an excellent financial tool to boost finances for home renovation or construction. It offers a large loan amount of up to Rs. 25 Lakh that can provide additional monetary backup for such high-cost expenses.
Several financial institutions including NBFCs like Bajaj Finserv offers such credits at borrower-friendly terms and with several additional features and benefits. Bajaj Finserv also provides pre-approved offers on personal loans and other unsecured credits like business loans, secured advances like home loans, along with a range of financial products. Such offers not only simplify the process of availing finance but also help you save on time. All you have todo is share some essential details online to check your pre-approved offer.
Moreover, a borrower can enjoy tax benefits under the Income Tax Act of India if they utilise the amount of government personal loan for renovation or construction of a residential property.Construction of a property complies with Section 24(b) of the Indian Income Tax Act, and one can avail up to Rs. 2,00,000 tax deduction on the paid interest. In case of home renovation, a borrower is eligible to claim deductions of up to Rs. 30,000 as tax benefits on the payable interest.
- Funding any family occasion –
Expensive family occasions like weddings, anniversaries, etc. can be managed with the help of a personal loan for Govt employees. It allows a borrower to pay for the expenditures without affecting their savings.
- Funding higher education –
Another popular method of utilising government loans for personal usage is to fund higher education with the loan amount. The borrower can create a backup fund with the loan amount to ensure he or she does not face any financial distress in case of an unforeseen incident.
- Paying for medical costs –
This loan is a great financial tool to meetemergency. Medical emergency loan helps you to pay formedical treatment costs as most financial institutions approve and disburse the credit within 24 hours of successful application.Its minimum documentation and transparent policies allow the lender to verify and disburse the amount within the minimumtimeframe.
Moreover, a flexible tenor allows the borrower to repay the loan according to their convenience and without straining their personal finances. They can even utilise an online personal loan EMI calculator to determine the rate. These are some of the methods how government employees can fulfil their financial requirements with the help of a personal loan. Its tax benefit, hassle-free documentation, large loan amount, affordable interest rate, and quick approval and disbursal make personal loans for government employees simplified and preferred option.