The Post Office Loan Scheme allows customers to access different types of loans through partner institutions. They can continue using their savings accounts while availing these facilities. For example, business loans are offered under this scheme, with interest rates typically ranging from 10% to 22.50%, depending on the lending partner.
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Post Office Loan Scheme enables customers of India Post Payments Bank (IPPB) and the designated Post Office to access home, personal, or vehicle loans from partner banks and NBFCs without changing their savings accounts. Through IPPB’s digital-first referral service, loans are processed quickly and transparently via doorstep banking, Post Office support, and the IPPB Mobile App, while the lending partner determines approval, interest rates, and repayment terms.
IPPB Loan Referral Services offer multiple credit options to suit diverse financial needs. The key categories include:
Personal Loan
By collaborating with leading banks and NBFCs, IPPB enables applicants to compare competitive interest rates and select the personal loan offer that best fits their budget.
Partner Bank / NBFC
Interest Rate Range
Rate Type
Axis Bank
10.50% – 25.00%
Fixed
HDFC Bank
10.50% – 25.00%
Fixed
FIBE
1.5% – 2.5% per month
Monthly
Aditya Birla Capital Ltd
11% – 24.00%
Fixed
Home Loan
IPPB’s home loan referral service connects customers with housing finance partners to get competitive rates for buying, building, or renovating a home. Here are its key details:
Lending Partner
Home Loan Interest Rate
Loan Against Property Rate
Homefirst Finance
10.50% – 14.00%
14.00% – 17.00%
Aadhar Housing Finance
12% and above
15.75% and above
Axis Bank
8.50% – 10.00%
–
HDFC Bank
8.50% – 10.00%
–
Aavas Financiers Ltd.
10% – 14%
14% – 18%
Vehicle Loan
IPPB connects applicants to trusted partner lenders through its vehicle loan referral service, enabling them to obtain competitive financing for two-wheelers, four-wheelers, or commercial vehicles across India.
Lending Partner
Loan Type
Interest Rate
Service Locations
Axis Bank
2-Wheeler Loan
14.50% and above
Pan India
Auto Loan
9.10% – 11.00% (Fixed)
Pan India
Mahindra Finance
Car Loan
9.99% and above
Selected Locations
Pre-owned Car Loan
16.00% and above
Selected Locations
3-Wheeler Loan
24.00% and above
Selected Locations
Tractor Loan (New)
16.00% and above
Selected Locations
Tractor Loan (Pre-owned)
18.00% and above
Selected Locations
Utility Vehicle Loan
13.00% and above
Selected Locations
HDFC Bank
2-Wheeler Loan
14.50% and above
Pan India
Auto Loan (New vehicle – Personal use)
8.30% – 11.00%
Pan India
Gold Loan
Customers can obtain financing against their gold through IPPB’s gold loan referral service at competitive rates.
Lending Partner
Interest Rate
Service Locations
Axis Bank
10.10% – 17.00%
Pan India
HDFC Bank
8.30% – 16.55%
Pan India
Kisan Credit Card (KCC) Loan
IPPB’s Kisan Credit Card (KCC) Loan scheme provides farmers easy access to timely funds at subsidised interest rates, supporting agricultural needs and ensuring a productive harvest.
Lending Partner
Interest Rate
Service Locations
Axis Bank
7.00% – 18.75%
Pan India
HDFC Bank
7.00% – 18.75%
Pan India
Business Loan
IPPB’s business loan referral service helps entrepreneurs and business owners access financing to start or expand ventures, manage capital, or invest in growth.
Lending Partner
Interest Rate
Service Locations
HDFC Bank
10.00% – 22.50%
Pan India
How to Apply for the Post Office Loan Scheme?
Applying for a Post Office loan scheme is straightforward. Here’s a step-by-step guide:
Check Eligibility: You must be an IPPB customer with completed KYC. Additional eligibility requirements, such as income, credit score, or collateral, are set by the partner lender and vary by loan type.
Visit IPPB App or Branch: Download the IPPB Mobile Banking app, log in, and navigate to the loans section. Alternatively, visit your nearest post office with IPPB facilities.
Fill Application Form: Provide personal details, employment information, loan amount required, and preferred tenure.
Upload Documents: Submit scanned copies of KYC documents and income proof online. In-branch applicants can provide physical copies.
Verification & Approval: The partner bank evaluates your credit profile. Once approved, the loan amount is credited directly to your IPPB account.
Disbursal: Funds are typically released within a few days after final approval, but exact timelines vary by lender and the borrower’s credit profile.
Required Documents
When applying for the post office loan scheme, keep these documents ready:
Aadhaar Card: Serves as the primary identity proof for verifying your name, date of birth, and residential details accurately.
PAN Card: Required for financial and tax verification, ensuring compliance with income tax regulations and preventing fraudulent loan applications.
Passbook or Certificate of the Deposit Scheme: Provides official proof of your Post Office account balance and scheme participation for loan eligibility assessment.
Loan Application Form: A duly filled form obtained from the post office, capturing personal, financial, and loan-specific information for processing.
Address Proof: Submit Voter ID, Driving Licence, or a recent Utility Bill to confirm your residence address.
Passport-Size Photographs: Recent colour photographs needed for documentation, identification, and official records in the post office loan application.
Key Takeaways
The Post Office Loan Scheme lets customers apply for personal, home, vehicle, gold, Kisan Credit Card, and business loans at competitive rates through partner banks. Customers can apply through the IPPB app, visit a branch, or use doorstep banking to access credit even in remote areas. Eligible Indian residents with Post Office deposit accounts can apply by submitting documents such as Aadhaar, PAN, deposit passbook, loan form, address proof, and passport-size photographs. This scheme offers a reliable, one-stop solution for fast, flexible, and secure financial support across urban and rural India.
FAQs
Can a Post Office provide a loan?
The Post Office/IPPB only refers customers to partner banks and NBFCs for personal, vehicle, gold, home, KCC, and business loans. IPPB handles application support, but the partner lender sets all terms, including whether the loan is secured or unsecured. Always review the lender’s terms before applying.
What is the EMI for a 2 lakh personal loan?
The EMI depends on the interest rate and tenure. For example, at a 12% annual rate over 3 years, the monthly EMI is about ₹6,650. Use an online EMI calculator to get an exact figure based on your chosen partner bank’s rate and repayment period.
How to get a 1 lakh loan without a salary slip?
You can apply through the IPPB personal loan referral service if you have an eligible Post Office deposit account (like PPF, NSC, MIS, or Term Deposit) and meet the partner bank’s credit criteria. Alternative income proof, such as bank statements or Form 16, may be accepted.
What is the interest rate on a postal loan?
Rates vary by partner bank. Examples include Axis Bank and HDFC Bank at 10.50% - 25% (fixed), Aditya Birla Capital at 11% - 24%, and FIBE at 1.5% - 2.5% per month.
How can I get ₹5,000 interest monthly in the Post Office?
To earn about ₹5,000 per month, you need to invest roughly ₹10 - 12 lakh in a Post Office scheme offering around 6% annual interest (for example, a Senior Citizen Savings Scheme or Monthly Income Scheme). The actual investment required will vary with the chosen product’s rate.
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
Past 10 Years' annualised returns as on 01-11-2025
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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