Government personal loans are the personal loans provided by the government banks to the people. These Personal Loans are considered to be some of the most competitive interest rate loans available in the market. In India there are many government banks available in the market with some of the best services and major customer list much greater than the private banks in India. This gives them a unique advantage of having a great asset and resources in competition to the private banks in the market. As they are government subsidiaries they can provide for loans at a lower rate of interest than the private banks.
These banks are but often more interested in providing secure loans like home loans or loan against property than the unsecured loan such as personal loans. Normally the government banks provide loans with procedures a little bit slower than the private banks. Also, the government banks are pretty strict about their documentation needs. They will need all the documents they mention in their list for a loan approval and also the approach in the concerned bank is also a benefit in getting the loan. They are also strict about the loan repayments by the loaned.
Instead of this the personal loan by government banks is always a much cheaper and better affair than the private banks. So, if possible you should always opt for a government personal loan rather than a private personal loan as it may be cheaper and more beneficial for you in the end.