Loan Scheme 2024: A personal loan is a very common product of banks that is provided to customers by the bank according to their eligibility. However, banks are charging 12% to 15% interest rates annually for the personal loan. The government is providing special facilities to Government employees as they can apply for personal loans from the government and interest rates will be low for Government employees. so if you are also one of them and want to get a personal loan then you can check this article where we are providing you the eligibility criteria, application procedure, and all the information on Government employees’ low-interest rates loan scheme.
The Government of India is providing a future savings scheme called as General Provident Fund which is also known as GPF. This is an investment plan which is designed only for Government employees. Employees have to invest in this account monthly basis and get 7.1% interest from the government on their savings. After that employees can withdraw their savings amount after retirement or during employment according to the need. However, these employees have special facilities to get GPF personal loans where they can apply for loans for multiple purposes including home renovation, medical expenditure, educational needs, marriage expenditures of children, etc. The very beneficial thing about this non is employees have to pay only 2.5% interest rates which is lower than the other interest rates of any Bank. But only Government employees can take advantage of this Loan Scheme 2024.
Loan Scheme 2024: Loan amount under GPF Account
Loan amounts under the GPF account for Government employees will vary according to the condition of the individual employee and the loan is provided in the percentage of their savings with the GPF. If you want to renew your house or purchase a new house you can withdraw up to 90% of GPF from your account. For education purposes and marriage purposes, you can take up to 50% money from your GPF account.
If you are engaged with any medical treatment then the bank will provide you up to 75% loan from the savings where you will be charged only 2.5% interest rates. You will get the flexibility to get a personal loan as if you want to pay the interest rates then you can take the money as a loan or if you do not want to pay the interest rates then you can withdraw your already deposits in the account which is stored for your retirement.
Loan Scheme 2024 Maturity period
The maturity period to repay the loan amount in the GPF account is decided according to the service years of the employees and other conditions are also considered. However, most of the time Government employees get offers to pay the loan amount for up to 25 years. While other banks provide the maximum tenure to repay the loan amount between 10 to 15 years for home loans you can get up to a maximum of 20 years of EMI facilities. Government employees can get a maximum of 25 years of EMI facilities which is enough to repay in the loan amount in short-term deposits.
Eligibility criteria to apply for Government employee loan
Only Government employees who have already managed GPF accounts for many years can apply for personal loans. If you are going to withdraw up to 75% of the 90% amount then the minimum service years for minimum contribution in the GPF account should be 15 years. However, employees can also withdraw the deposit amount before 10 years of retirement. So if you are using a GPF account then you are eligible to apply however the amount should vary according to your contribution and your category of service
Application procedure for GPF loan
If you want to get a GPF account then you have to contact your employer for the finance sections of your department where you can get the application form you have to provide the purpose of the loan and other information in the application form and submit it to the department. after that department will verify and calculate your loan amount according to the investments and will transfer the loan amount to your bank account.