Public Sector Loans – Career Growth and Flexibility

What exactly are Public Sector Banks? Public Sector Banks are basically a form of non-profit bank controlled by governments of different countries. These are bodies of financial institution that are administered by governments. In contrast with what most people think it is not a for-profit company. Instead the officers of such an organization are appointed as civil servants with limited power of direct appointment to the board of directors of the bank. This means that they are appointed on a need to basis only.

Public Sector banks in India have two kinds of employees; namely Employees who work in these organizations are civil servants appointed on a contractual basis by a government department head. Employees who work in Public Sector banks are subject to employment laws just like other employees in private sector banks. Employees of Public sector banks also have additional benefits in terms of job security. Job security for bank employees has improved over the years in light of increased regulation of the banking industry by government.

The basic job of all Public Sector banks offer is monetary operations. They lend funds to businesses and other individuals and issue them check for collecting payments. It is the role of the Public Sector banks to lend loans to businesses or individuals for conducting their business operations. However the loan amount offered to a businessman depends upon the annual income of that businessman. Other factors such as the size of the company, capital requirement and the profit margin also decide on the amount of loan that a businessman will get.

Today the banking industry has been greatly regulated by government to make sure that the operations of the banks are conducted in an orderly manner and at reasonable interest rates. In fact there have been a lot of changes brought about to the way these institutions operate by government. The public sector banks offer loans at lower interest rates to common persons. Since there are very less chances of loan default among public sector individuals, they offer loans at comparatively lower interest rates.

Private banks have the flexibility to grant loans to salaried individuals without any hesitation. However, these institutions have certain restrictions on the amount of money that can be lent to any individual. There are many additional benefits that come with Public Sector banks. They offer fixed deposits, low interest rates, easy online access and other such benefits. One of the most important benefits of having a fixed deposit in a Public Sector bank is career growth.

A salary clerk working in a Public Sector bank may be employed for a fixed period of time such as a year or a few months. It also allows more work hours than private banks would allow employees to have. Hence Public Sector banks provide ample of work hours to its employees. Hence it is beneficial to employees who wish to have career growth by getting employed in Public Sector Banks.