Starting October 1, 2025, public sector giants — State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BOB) — will roll out a new credit facility allowing eligible customers to access up to ₹1 lakh instantly. This initiative is designed to support everyday banking customers with quick financial assistance when they need it the most.
Let’s break down what this means and how it could benefit you.
What Is This ₹1 Lakh Credit Facility?
It’s a pre-approved loan limit that will be directly linked to your existing savings or salary account. You don’t need to fill out lengthy forms or wait weeks for loan approval — if you’re eligible, the funds can be accessed immediately through your bank account.
This move is targeted at helping customers meet urgent expenses like medical bills, school fees, or emergency purchases — without the hassle of traditional personal loans.
Who Can Get This Facility?
Not everyone will be automatically eligible. Banks will select customers based on:
- A good banking history
- Regular income or account activity
- Positive credit behaviour
- Holding an account for a minimum period (likely 6-12 months)
If you qualify, your bank will notify you via SMS, email, or app notification, along with the terms of the credit facility.
How Will It Work?
Once approved, the credit limit of up to ₹1 lakh will be linked to your account. You can access it through:
- Net banking or mobile banking
- ATM withdrawals
- UPI or cheque
This credit will be similar to a short-term loan, repayable over 30 to 90 days, with a relatively lower interest rate than most personal loans or credit cards.
For example, if you use ₹30,000 from your credit limit, you’ll need to repay that amount within the repayment window — along with applicable interest.
Why Are Banks Offering This Now?
There are a few key reasons:
- Growing demand for quick and paperless credit
- Push towards digital banking and financial inclusion
- Need to offer safer alternatives to informal borrowing
- Encouraging responsible borrowing habits among customers
It also helps these banks grow their retail loan portfolio while staying competitive with private lenders.
Benefits for Customers
- Instant access to funds in emergencies
- No paperwork or long waiting periods
- Lower interest rates than credit cards
- Linked to your existing account — easy to manage
- Helps build a good credit history, if used responsibly
Things to Keep in Mind
While it’s a useful facility, it’s still a loan — not free money. Failure to repay on time can hurt your credit score and lead to penalties.
Also, since eligibility is not guaranteed, not all customers will get this offer. Banks will evaluate carefully to reduce risk.
This new ₹1 lakh credit feature from SBI, PNB, and BOB is a game-changer for many everyday banking customers. It gives people the financial cushion they need — without the headaches of traditional loans.
As the rollout begins on October 1, 2025, check your bank app or contact your branch to see if you qualify. And remember — use it wisely, repay on time, and it could become a helpful financial tool in your everyday life.