Loan from a PSU Bank: Types, Eligibility, Rates and How to Apply
Published 13 October 2026 · 8 min read · Clean EMI Editorial
A loan from a PSU bank means a loan from a public sector (government-owned) bank such as SBI, PNB, Bank of Baroda or Canara Bank. These banks are popular because of their reach, long tenures and competitive pricing. This guide covers the main loan types, who is eligible, how interest rates work and how to apply, with links to the detailed pages for each.
Part of the Home Loan guide series.
Which banks count as PSU banks
There are 12 public sector banks: State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India, Bank of India, Indian Bank, Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab & Sind Bank. Each has its own page on the PSU bank list, for example Bank of India.
Loan types you can get
- Home loan / housing loan to buy a flat or house
- Home loan balance transfer to move an existing loan to a lower rate
- Plot loan to buy residential land
- Home construction loan to build on your own land
- Loan against property secured on residential or commercial property
- Vehicle loan for new cars, commercial vehicles and EVs
Eligibility in brief
Through Clean EMI, a CIBIL score of 700 or above is required, with a minimum of ₹30 lakh for home loans and LAP and ₹10 lakh for vehicle loans. Banks also look at income, existing EMIs, age and the asset. See how banks calculate loan eligibility.
How the interest rate is set
Rates are a benchmark plus a spread based on your profile. See how interest rates are decided and how to get a lower rate.
Documents
PAN, Aadhaar, address proof, income proof, bank statements and asset papers. The master checklist covers all loan types.
How to apply
Check your report with the free credit analyzer, test your numbers on the eligibility check, then submit the form. Clean EMI verifies your file and forwards it to the PSU bank branch. Read how the application process works. Clean EMI is a private facilitator, not a bank, and the lending bank alone sanctions the loan.
Frequently Asked Questions
What is a PSU bank loan?
A loan from one of India’s 12 public sector (government-owned) banks, such as SBI, PNB or Bank of Baroda.
Which loans can I get from PSU banks?
Home loans, balance transfers, plot loans, construction loans, loans against property, vehicle loans and business loans, depending on the bank’s schemes.
What CIBIL score do I need?
A score of 700 or above is required to proceed through Clean EMI.
Is Clean EMI a government body?
No. Clean EMI is a private loan advisory service and is not a bank or a government entity.
Useful free tools
- Free Credit Analyzer — Upload your CIBIL report and see which loans you may be eligible for, with an indicative EMI.
- Check my Loan Eligibility — Answer a few questions and see how your application would be routed to a PSU bank.
- Home Loan Balance Transfer Calculator — Compare your current EMI with a lower-rate loan over the same remaining tenure.
- Credit Score Enhancer — Practical steps to improve your CIBIL score before you apply for a loan.
Ready to check your eligibility?
No fee to apply. CIBIL score of 700 or above required.