Time and again we have encountered situations where the defence personnel of our nation have left no stones unturned to keep our nation safe. And not to mention the hardships that they have to face due to their line of work and the conditions that they operate in. They also end up spending a lot of time away from their family.

As a mark of respect for their selfless service, many banks and other financial institutions allow loans and other privileges like special salary or savings accounts to the serving defence personnel. Through this post, we have tried to bring about a primer on the various loans and other banking privileges available to defence personnel in India.

What Loans Are Specially Available to the Defence Personnel?

SBI Shaurya Home Loan

Going by the tag line "You Serve the nation, Give us an opportunity to serve you", Shaurya Home loans are exclusively dedicated to defence personnel.

What Are The Important Features Of SBI Shaurya Home Loan?

  • Lowest interest rates

  • Easy repayment options

  • Longer tenures are available

  • Interest concession to women borrowers

  • There are no pre-payment penalties levied

What is the eligibility criteria for applying to SBI Shaurya Loan?

Any defence personnel in the age bracket of 18-75 is allowed to apply to this loan.

What is the interest rate charged on SBI Shaurya Loan?

With Check Off facility (Direct debit of EMI by the employer)

  • For Up to Rs 30 lakhs - 8.6 -8.7%

  • For loans from Rs 30 lakhs - Rs 75 lakhs - 8.85%-8.95%

  • For loans above Rs 75 lakhs - 8.85% -8.95%

Without Check Off facility

  • For Up to Rs 30 lakhs - 8.65 -8.75%

  • For loans from Rs 30 lakhs - Rs 75 lakhs - 8.9%-9.0%

  • For loans above Rs 75 lakhs - 9.0% -9.10%

PNB Pride Housing Loans for Defence and Government Employees

Punjab National Bank also offers their Pride Home Loans to Government Employees in addition to Defence Personnel. Their objective being "To ensure availability of Housing Loan at attractive rates and ensure a house for all government employees"

What Are The Important Features of The Loan?

  • This loan can be used for construction or purchase of a flat. It also allows for carrying out repairs/ renovations to the existing house or for purchase of land/plot for construction.

  • Quantum of loan provided by the bank for purchase of land is Rs 100 lakhs for state capitals and metros and Rs 50 lakhs for other areas.

  • For purchase or alteration of flats, the maximum amount is based on need and repaying capacity

  • There is no processing fee charged on the loan.

  • Maximum tenure allowed for purchase of renovation/ repair/ alteration loans is 15 years

  • Maximum tenure allowed for purchase of new flat/ house/ plot for construction is 30 years

What is the Eligibility Criteria for PNB Pride Housing Loan?

All permanent Employees of Central/ State Governments including  Defence Personnel & Paramilitary Forces are eligible as Individuals or Joint owners.

What is the Rate of Interest charged on PNB Pride Home Loan?

The rates of interest charged for floating rate loans are as below:

  • For Loans up to Rs 75 lakh - MCLR +0.2%

  • For loans above Rs 75 lakh - MCLR +0.25%

And for fixed rate loan

  • Floating PNB Pride Rate + 0.5%

What are the other privileges available to Defence Personnel?

In addition to loans, many banks offer other privileges to defence personnel. These come generally in the form of salary accounts, but unlike a normal savings accounts, the ones meant for defence personnel carries extra features. They could be debit/ credit cards at low or no joining/ annual fee, provision of insurance cover with the account, facilities for holding zero balance and other added perks.

We bring the best of the salary accounts meant for defence personnel with maximum benefits. Read on find out more.

Axis Bank Defence Salary Account

Main features of the account are:

  • Zero Opening Deposit and Monthly Balance Provision

  • Unlimited free pay-at par chequebooks and demand drafts /pay orders at Axis Bank Locations.

  • Free SMS alerts and access to internet and mobile banking

  • Free Power Salute Debit Card with nil joining and annual charges to primary and the joint holder

  • Personal Accident Insurance Cover of Rs 30 lakhs (including Permanent & Partial Disability Cover)

  • Allows Family Banking Benefit by sharing the benefits with up to 3 family members 

HDFC Bank Defence Salary Account

  • In addition to the Salary account, one could also avail similar benefit for a Zero Balance Family Salary Account

  • Personnel in the Officer Rank get a free Times Points Debit card and those below the Officer rank get a Free Titanium Debit Card. Both the cards come with additional shopping and ATM Cash withdrawal benefits 

  • Free personal accidental death cover of Rs 5 lakhs and free air accidental death cover of Rs 25 lakhs is also available with the salary account

  • Free bill pay facility is also allowed

  • Preferential pricing to loans is also available for defence salary account holders

SBI Defence Salary Package

This facility comes in as a package that is beneficial to the employers as well employees of the defence including Indian Coast Guard, Assam Rifles, Rashtriya Rifles (RR) and GREF [Border Road Organisation (BRO)]. Different variants of the package for benefitting personnel in the ranks and files of these Defence organisations are available.

Main Features Of The Package For Employers

  • It comes across as a convenient way to disburse salary across a large number of centers with the help of SBI's corporate internet banking.

  • Zero charges are levied on salary disbursement

  • Instant credit of salary to the employees

Main Features Of The Package For Employees

  • Zero balance account and free unlimited transactions across ATMs of any Bank. Also comes with SBI Credit Card.

  • Complimentary Personal Accident Insurance (Death) cover up to Rs 20 Lakhs.

  • Complimentary Air Accident Insurance (Death) cover up to Rs 30 Lakhs.

  • Possibility to avail Personal Loans, Home Loans, Car Loans and Education Loans at attractive rates and 100% waiver on processing fees.

  • Overdraft equivalent to 2 Months Net Salary (Currently available for select customers only)

  • The facilities under DSP accounts will be continued even for pension accounts after retirement provided the Ex-Service personnel is drawing his pension through the same bank.