What is a Personal loan for Pensioners
Personal Loan is unsecured and multipurpose. It acts as a most helpful tool when a person requires any kind of financial support. No matter who is the lender, there are certain criteria and AGE is one of them. It’s a fact that after 60 years, the income of a person reduced and simultaneously the repayment capacity too. Every lending institution kept loan repayment capacity as one of the key factors in the loan approval process. Due to this many lenders do not offer Personal Loan to Pensioners. But it does not mean that is the end of the road there are some banks which offer Personal Loan to pensioners.
Now a day’s lending institutions are offering loans to Pensioners. The main aim of Personal Loan to Pensioner’s loan is to help them in fulfilling their family obligation or emergency expenditures. Some banks provide Personal Loan to the Pensioners without any processing charge. The interest rate on this type of Personal Loan varies based on the bank but generally, it ranges from 11% to 13% a year. Two factors play a major role in the loan approval process, which are the Pension amount and the age of the applicant.
There is the number of banks which offers Personal loan to senior citizens who draw a pension from their bank at a competitive rate of interest. Here are some of the best Personal Loan to Pensioners:
SBI Personal Loan
SBI Personal Loan is a scheme to Pensioners who are drawing a pension from their bank. The applicant age should be below 76 years to get Personal Loan at attractive interest rates. The pensioners can get up to Rs. 14 Lakhs as the loan amount. The family of Defence personnel, state, and central government pensioners are eligible to get this Personal Loan from SBI. The loan amount varies based on the category they belong to. No margin is required to avail of the loan.
UCO Bank offers Personal Loan to those drawing a pension from their Bank. Borrowers who are 70 years old & below can get a loan up to Rs. 10 Lakhs and those fall into the category of 70 to 74 years can avail loan up to Rs. 5 Lakhs. There is no processing or services charge to the Pensioners. UCO offers a rate of interest MCLR of 1 year + 3. 15% (floating).
Central Bank of India
Central Bank of India offers Personal Loan to Pensioners at a competitive rate of interest. It is known as ‘Cent Loan to Pensioners’. Pensioners who are aged up to 75 years can get 18 months of their pension or Rs. 5 Lakhs and who are above 75 years can avail loan up to 12 months of their pension or up to Rs. 2 Lakhs.
Punjab National Bank (PNB)
A Pensioner can avail Personal Loan of minimum 25, 000 from PNB and maximum is based on the age category he/she falls:
- Age up to 70 years- Rs. 10, 00, 000 or 18 times of the net monthly Pension
- Age above 70 years up to 75 years- Rs. 7, 500, 000 or 18 times of the net monthly Pension
- Age above 75 years- Rs. 5, 00, 000 or 12 months of Pension amount.
The interest rate starts from TL/DL: BR+ 2.50%. There is no processing fee charged by PNB Personal Loan for Pensioners.
Top 5 benefits of Personal Loan to Pensioners:
Personal Loan to Pensioner is designed to meet the credit needs of senior citizens. There are the top 5 benefits that are exclusively provided on these types of loans:
- Fast and simple Loan processing.
- Minimal documentation is required for Personal Loan to Pensioners.
- Low or no processing fees are charged on Personal Loan to Pensioner’s loan.
- Easy and flexible loan repayment tenure, although it differs across banks.
- The loan account is directly transferred to the applicant’s pensioner’s account.
Eligibility for Personal Loans to Pensioners
The eligibility criteria vary from bank to bank but the here are the generic factors which an applicant has to fulfil to avail the Personal loan:
- The borrower should be a professional of central or state government organization.
- He or she can get the loan from the bank in which he/she is having their pension account.
Loan Repayment Tenure
- The loan repayment is done by EMIs only similar to other loans. The Personal Loan to Pensioners repayment tenure varies from bank to bank, which is generally from 12 to 60 months.
Documents required for Personal loan to Pensioners
Below are the documents are generally required for the Personal loan to pensioner, however, it may vary based on financial institutions or bank.
- Proof of identity
- Address Proof
- Proof of retirement
- Passport size photographs
- Last pension cheque