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.
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.
Pensioners can avail personal loans from Money View as long as they meet the following eligibility criteria -
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.
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.
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.
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
Ans:
Thank you. Your feedback is important to us.
Apply for personal loan
