Personal Loans for Pensioners
Emergencies and the need for finance can come up at any stage of your life. While you are young and earning an income, it may be easier for you to avail of a loan or borrow from other sources. But the retired and those earning pension many also come up with needs for finance, let us learn more about the loan options available for them.
Can the Retired get a Bank Loan?
This is one of the frequently asked questions by the retired. One of the main factors that the bank or any lender looks for in the applicant is the ability to repay any loan and reduce the risk on the loan. 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.
Can a Pensioner get a Personal Loan?
While we understand that retired individuals may also be eligible for loans, 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.
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 the normal personal loans. Some of the important features of the personal loans for pensioners are:
- Age Limit:
The maximum amount that can be availed of as a personal loan depends upon the age of the pensioner. Certain banks may also restrict the availability of loans only up to a certain age.
For Example: Only Pensioners till the age of 76 can avail of personal loans from SBI. UCO Bank allows a maximum of Rs 5 lakhs for those up till the age of 70 and Rs 4 lakhs for those in the age bracket of 70-72.
- Interest Rates:
Interest rates for personal loans to pensioners vary between banks. For Example: Personal loans for pensioners from SBI carry a rate of interest that starts from 11.55%.
- 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 person eligible for the family pension after the death of the applicant to stand as a guarantor for the personal loan.
Some of the banks that lend personal loans for pensioners are State Bank of India, Punjab National Bank, UCO, Bank of India and Central Bank of India.
Are Pensioners Eligible for Money View Personal Loans?
The eligibility criteria for Money View online personal loans are very transparent and easy to understand. Pensioners who meet our eligibility criteria as mentioned below can apply for personal loans from Money View.
Basic Loan Eligibility Criteria for Pensioners At Money View
- The monthly in-hand income of ₹13,500* or more
- Income should be received in a bank
- Min Cibil score of 650 or Experian score of 750
- Should be aged between 21 years and 57 years
*Please go through the detailed eligibility in respect to your area of residence and credit score
If you require more information on Money View personal loans or need any assistance in applying to our loans, please get in touch with us at firstname.lastname@example.org or 080 45692002.