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Personal loan for Pensioners

Loan for Pensioners

Last Updated 05th Dec 2021

  • Banks offer special personal loans to pensioners. These loans are known as pension loans.
  • To avail loans for pensioners you must fulfill pension loan rules including pension loan age limit.
  • The loan can be availed by Govt, Defense, or family pensioners up to 76 years of age.
Interest Rate Starting at 7.25% Check Best Offers
Loan Amount ₹ 25,000 to ₹ 14 Lakh
Prepayment Charges Upto 3% of loan amount
Processing Fee Upto 2.25% of Loan Amount
Apply for Personal Loan @ 10.25%* Get upto ₹ 1,000* Cashback

Personal Loan Schemes for Senior Citizens or Pensioners

The need for emergency financial assistance can arise anytime and at any age. While pension acts as a steady source of income after retirement, there are times when the individuals may require additional funds. Availability of a personal loan is an option, but it may be challenging as the pensioners may not fulfil the eligibility criteria for personal loans. Thus, the banks offer particular personal loans to pensioners. These loans are known as pension loans.

Features And Benefits of Loans for Pensioners

Planning the retirement can be a tedious task as a pension is the only source of income. After retirement, you may need funds to finance a marriage, travel or any medical emergency. These expenses can easily be financed with personal loan for pensioners.

Here are the Features & Benefits of pensioner personal loan :
  • Personal Loan for pensioners is available for the Govt, Defense, or family pensioners up to 76 years of age.
  • The personal loan for pensioners can be availed for the amount ₹ 25,000 to ₹ 14 Lakh. The maximum limit for family pensioners is ₹ 5 Lakh.
  • The personal loan for pensioners levies the prepayment and foreclosure charges of 3% on the prepaid amount.
  • The loan for pensioners can be availed with minimal documents at zero hidden costs.
  • The processing fee of 0.50% on the loan amount is levied for pensioner loans. Defence Pensioners, however, do not need to pay any processing fees. There are some banks that do not charge any processing fees on a personal loan for pensioners.

Top Banks Offers for Personal Loan for Pensioners

Here are top pension loan providers that offers quick and easy loans

SBI7.25%
PNB9.20%
United Bank of India12.95%

SBI Pension Loan

Central or State government pensioners, defence pensioners, and family pensioners upto the age of 76 years can avail of SBI personal loan to fulfil their financial needs. To avail of the loans, they should maintain the pension order with SBI. SBI pension loans are offered for the amount ranging from ₹ 0 to ₹ 20 Lakh at SBI pension loan interest rate starting at 7.25%.

PNB Personal Loan Scheme for Pensioners

Pensioners who are drawing pensions through PNB accounts can also benefit from a personal loan scheme for pensioners at rates starting at 9.20%. The bank does not charge any processing or upfront fees on loans. The loan amount for pension loans varies based on the type of pensioner. However, it ranges from ₹ 25,000 to ₹ 20 Lakh. To avail of a personal loan for senior citizens from PNB, you must be below 75 years of age.

United Pension Loan Scheme for Pensioners

The bank offers a personal loan for pension holders as a term loan to meet family and personal expenses. A pension loan scheme is available for all pensioners, including pensioners of central and state governments, defence services, reputed companies etc., who are drawing pension from the United Bank of India. You can avail upto ₹ 10 Lakh at minimum rates starting at 12.95%. It also charges a processing fee of upto 0 of the loan amount.

Eligibility for Pensioners Loan

To avail loans for pensioners, you need to fulfill the following eligibility criteria:

  • Age: The age limit for pension loans varies from bank to bank. However, pensioners upto the age of 76 years can avail personal loan for pensioners.
  • Loan Amount: You can avail personal loan for pensioners for upto ₹ 0 . This however differs from bank to bank and is dependent on factors such as the pension you are drawing, age limit, type of pensioner etc.
  • Loan Tenure: The repayment tenure of personal loan for pensioners varies from bank to bank based on your age, type of pensioners and the loan amount. For instance, you can avail SBI pension loan for loan tenure upto 60 Months months .

Document Required For Loans For Pensioners

You need to submit the following documents for getting a personal loan

  • Identity proof: Any of these – Passport, Voter Identity Card, Pan Card , Driving License, Aadhaar Card.
  • Address proof: Any of these– Ration Card, Bank Account Statement, Passport, Driving License, Utility bills, Property purchase agreement, Aadhaar Card.
  • Income proof: Bank Account Statement, Salary Slips.

FAQs

Where can I get a Pension Loan?

You can get a pension loan at attractive interest rates and without any hidden costs from top banks such as SBI, PNB, United Bank of India etc. You can also compare and apply for the best personal loan at MyLoanCare.

Can you get a Loan on a Pension?

Yes, personal loan for pensioners is available for the Central and State Govt pensioners, Defense pensioners and family pensioners up to 76 years of age. To avail this loan, you need to fulfil eligibility and documentation conditions.

How much Loan can a Pensioner get?

The loan amount of personal loan for pensioners varies for the different pension loan providers. For instance, SBI pension loan can be availed for the amount ₹ 25,000 to ₹ 14 Lakh. In general, the loan limit for pension loans ranges up to ₹ 20 Lakh.

What is the pension loan scheme?

The pension loan scheme covers the funding needs of Govt, Defense and family pensioners after their retirement. Via the personal loan scheme retired pensioners can avail personal loan at easier eligibility criterions.

What is the interest rate on a pension loan?

The interest on pension loan starts at 7.25%. The interest rates on personal loans for pensioners vary based on your eligibility and the bank you choose.

What is the HDFC Pension Plan?

HDFC Life Guaranteed Pension Plan is a non-participating deferred pension plan. It is suitable for users who seek to plan for their retirement to get guaranteed returns on their invested amount for post-retirement income.

Can family pensioners get personal loans?

Yes, banks such as SBI, PNB and United Bank of India offer family personal loans for pensioners to meet financial needs such as personal and medical expenses.

What is the tenure and how can I repay my pension loan?

The repayment tenure of a personal loan for pension holders differs from lender to lender depending on your eligibility, loan amount etc. However, it may range from 2 to 5 years. You can repay your pension loan EMI through your net banking account or by visiting the bank branch through cash, cheque or DD.

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