When you are young and earning an income it may be easier for you to avail a loan or borrow from other sources. But what about pensioners? Where can one avail loans for pensioners? Are there specific pension loan schemes available? Let us take a look.

Where Can One Get a Personal Loan for Pensioners?

One of the main factors that a bank or any lender looks for in an applicant is the ability to repay the loan and reduce the risk on the lender. As long as the retired applicant has a stable source of income from either rent, royalty, pension, or have assets that can be pledged, availing a loan may not be difficult.

However, pensioners may face some age limit related restrictions on the loan.

Another question that we come across frequently is if pensioners can get personal loans and from where?

Another question that we come across frequently is if pensioners can get personal loans and from where?

Thanks to their service with the State or the Central Government or certain Public Sector Undertakings, pensioners are eligible to get a part of their last drawn pay as pension even after retirement. This regular income can ensure that they are able to get personal loans from certain banks subject to the eligibility requirements from each lender.

Personal Loan for Pensioners from Money View

Pensioners can avail personal loans from Money View as long as they meet the following eligibility criteria -

  • Applicants must be between 21 years and 57 years
  • Applicants must receive an income of Rs. 13,500 or more*
  • Income must be credited directly to the applicants’ bank account
  • Credit score must be a minimum CIBIL score of 600 or minimum Experian score of 650

If the applicant in question is below the age of 57 and receives a regular income, then he/she can avail a Money View personal loan. However, the loan approval will vary on a case-to-case basis.

Do Banks Provide Personal Loan for Pensioners?

Yes, certain banks in the country especially those that are nationalised do provide pension loan schemes to individuals who are pensioners but only if the applicant is below the age of 76.

Popular banks that provide personal loans for pensioners are State Bank of India, Punjab National Bank, UCO, Bank of India and Central Bank of India. The eligibility criteria, amount provided as loan, and interest rates will vary for each bank.

Features of Personal Loans for Pensioners

There are certain banks that allow loans for pensioners, however, the terms and conditions of these loans may slightly differ from regular personal loans. Some important features of personal loans for pensioners are:

Age Limit

Certain lenders restrict the availability of loans only up to a certain age.
For example, only pensioners till the age of 76 can avail personal loans from SBI. The amount varies based on whether they are central government pensioners or family pensioners, etc. and can go upto Rs. 14 lakh.

Interest Rates

Interest rates charged on personal loans for pensioners vary between banks. For example: Personal loans for pensioners from SBI carry a rate of interest that starts from 11.45% per annum but can vary.

Tenure of the Loan

The maximum tenure allowed for personal loans for pensioners varies from 36 to 60 months.

Collateral Requirement

As with normal personal loans, there is no collateral requirement for personal loans for pensioners.

Processing Fee

Many of the banks do not charge processing fees for personal loans to pensioners. However, it may be good to check with the bank before applying for a loan.

Guarantor Requirement

Certain banks require the applicant’s nominee to stand as a guarantor for the personal loan.

Popular banks that provide personal loans for pensioners are State Bank of India, Punjab National Bank, UCO, Bank of India and Central Bank of India. The eligibility criteria, amount provided as loan, and other pension loan rules will vary for each bank.

In Conclusion

Despite having a regular income sometimes you may need additional funds for which you can avail a loan but for pensioners, it is not so simple. As their repayment ability will not be as much as those who are still employed, availing a loan for pensioners might be challenging.

However, there are a number of banks that do provide a personal loan to pensioners. Additionally, if you meet the required eligibility criteria, you can also avail a pension loan from Money View by visiting the website or downloading our loan app to apply today.

Personal Loan for Pension Holder - Related FAQs

  • As long as the retired has a stable source of income from either rent, royalty, pension, or have assets that can be pledged, availing of a loan may not be difficult for a retired individual.
  • However, the retired may face some age limit related restrictions on the loan though.
  • Thanks to the State or the Central Government or certain Public Sector Undertakings pensioners are eligible to get a part of their last drawn pay as pension even after retirement.
  • This regular income can ensure that they are able to get personal loans from certain banks.