Top Banks in India who have Loan for Pensioners Product

Loan for Pensioners

The age of retirement sometimes binds you, but thanks to the financial assistance offered by the banks and NBFCs, the pensioners and retired professionals who can now apply for the pension loan. This loan amount can be used to meet the needs of emergencies and can be used in case of the financial crisis.

The pensioners’ loan allows the senior citizens to take the loan against their pensions, FDs, Kisan Vikas Patras, National Saving Certificates, LIC and RBI Relief Bonds etc. The maximum age limit for pensioners which the banks allow is 70 -75 years of age.

Most of the banks are reluctant to provide the loan to the pensioners, but there are certain leading banks like Punjab National Bank, State Bank of India, United Bank, Dena Bank, Bank of Baroda, etc. that provide the loan to the pensioners at an attractive interest rate.

The maximum loan amount may vary from bank to bank, and the interest rates may also change, but the fact of the matter is that with the help of this loan, the pensioners can now meet their emergent financial needs and other needs.

Top 5 Personal Loans for Pensioners in India

The banking and financial institutions in India offer myriads of benefits to the pensioners. There are various schemes offered by them which help the elderly people during and after their retirement. The need for financial emergencies can arise at any point in life, and the situation becomes even tougher if you have returned. If you don’t have any help around, what will you do? That’s the biggest question that bothers the elderly people but, the pension loan offered by the banks and NBFCs help this people. Although, the banks are reluctant to provide a loan to the pensions because of the higher risk are some banks which make the entire process easy and simple.

Here is the list of 5 banks offering personal loans for pensioners in India:

SBI Pension Loan

SBI Bank is one of the leading banks in India. The Bank offers various schemes and loans. SBI pension loan is for the pensioners and the elderly people. This loan is being provided to retired people of Central and State Government. Even the defence personnel can also avail this loan. Family pensioners can also apply for this loan.

Purpose: You may avail of the loan to meet any financial need or family obligation.

Processing Fees: The bank doesn’t charge the processing fees for the defence pensioners. The processing fees may amount up to 0.5% of the loan amount plus the taxes which can be a minimum of Rs. 500 plus tax. There are no other hidden charges.

Loan Limit: The minimum loan amount is Rs. 25,000, and the maximum loan amount may reach up to Rs. 14 lac. The loan amount different for defence professionals, family pensioners, and regular pensioners.

Interest Rate:  13.05% per annum.

Eligibility for SBI Pension Loan:

  1.    Retired Central and State Government employees
  2.    The age of pensioners should not be more than 76 years
  3.    The pensioner may be drawing pension through any SBI Branch
  4.    Government treasuries should disburse the retirement
  5.    The defence pensioners of the army, air force, navy, paramilitary, Assam Rifles, coast guards, and Rashtriya rifles
  6.    The maximum age limit for defence pensioners is 76 years
  7.    In case of family pensioners, the spouse who receives pensions after the death of the pensioner is eligible for the pension loan
  8.    The age of family pensioner should not be more than 76 years.

Central Bank of India Personal Loan to Pensioners

Central Bank of India is also a popular bank that offers pension loan to the pensioners. The bank offers attractive interest rates to the pensioners, and they also don’t charge any processing fees.

Purpose: The pensioners can avail pension loan from the bank and use it in case of emergency or to meet immediate financial needs.

Processing Fees: Central Bank of India doesn’t charge any processing fees from the pensioners

Loan Limit: Pensioners who are 75 years of age or below are eligible for the loan amount of 5 lac for 18 months and for those who are above the age of 75 can get a loan of maximum 2 lac for up to 12 months.

Interest Rate:  11.70% per annum.

Eligibility for Central Bank of India Pension Loan:

  1.    The pensioners must draw pension via Central Bank of India
  2.    Central Bank of India offers pension to the pensioners or family pensioners drawing pension from the bank.

Punjab National Bank Personal Loan to Pensioners

PNB or Punjab National Bank is one of the leading banks in India. The bank has a long history and is known to provide myriads of financial products to cater to the variegated needs of the customers. PNB also offers loan to the pensioners so that they can meet their needs in case of an emergency. The bank provides a lower interest rate which is also an attractive feature of PNB loan to the pensioners.

Purpose: The pensioners can use the pension loan to meet their financial obligation in case of emergency. The pensioners can also use this loan to meet their personal and medical expenses.

Processing Fees: PNB does not charge any processing fees. However, there is a documentation charge of Rs. 500 plus GST which the bank charges.

Loan Limit: The bank offers the minimum loan of Rs. 25,000, the maximum loan limit depends on the pension drawn and the age of the applicant which is mentioned below:

  1.    The pensioners up to the age of 70, PNB offers the maximum loan of Rs. 10 lac
  2.    The pensioners above the age of 70 can get a maximum loan of Rs. 7.5 lac
  3.    The pensioners above the age of 75 get the maximum loan of Rs. 5 lac

Repayment: Punjab National Bank offers the maximum repayment period of 60 EMIs, and for those who are above 75 years of age they can repay the loan in 24 EMIs. The bank takes into consideration the net monthly pension such that the EMI doesn’t exceed 50%.

Interest Rate: The interest rate offered on the PNB Personal Loan for Pensioners is 2.60% above the MCLR.

Eligibility for Punjab National Bank Pension Loan:

The pensioners drawing pension via PNB branch are eligible for the pension loan from Punjab National Bank.

Bank of Baroda Loan to Pensioners

Bank of Baroda is also one of the leading Banks in India that offers pension loan to the pensioners at an attractive interest rate. The pension loan amount depends on the age of the pensioners.

Purpose: Bank of Baroda’s pension loan can be used by the pensioners to meet their financial emergencies and other needs.

Processing Fees: Bank of Baroda doesn’t charge any processing fees from the pensioners and family pensioners of BOB, but others have to pay the fees of Rs. 1000.

Loan Limit: The regular pensioners who are below 70 years or 70 years of age can get a maximum loan of Rs. 8 lac. The pensioners above the age of 70 can get the loan of Rs. 5 lac.

In case of family pensioners who are below the age of 70 or 70 years, they can get a loan of Rs. 3 lac and the family pensioners above the age of 70 can get a loan of Rs. 1.5 lac.

The loan repayment duration can be between 3 years to 5 years.

Interest Rate: Base rate + 2.00% per annum.

Eligibility criteria for BOB Loan to Pensioners:

Bank of Baroda offers pension loan to those who draw pension via Bank of Baroda

Family pensioners of Bank of Baroda are also eligible for the pension loan

The age of the pensioners should not be more than 75 years

BOI Star Pensioner Loan Scheme

Purpose: Bank of India offers the personal loan to the pensioners in the form of the term loan, Demand Loan or Overdraft. The loan is granted to pensioners drawing pension through BOI or is retired employees of BOI.

Processing Fees: BOI charges no processing fees to the pensioners who are above the of 60. For others, the bank charges the processing fees of 2% of the loan amount. This is one-time fees. The pensioners also have to pat stamp paper and loan agreement charges.

Loan Limit: Bank of India offers pension loan under two categories :

Secured loan – This pension loan can be used by the pensioners to repay existing home loan, purchasing consumer durables like computer , laptops etc.

Unsecured loan- This loan amount can be used by the pensioners to meet medical expenses, education of self or spouse , marriage expenses.

The bank offers maximum loan between Rs. 3 lac to Rs. 5 lac. The family pensioners get the maximum loan of Rs. 1.5 lac.

Interest Rate: 2.00% + BSS (0.30%) over 1 Year MCLR

Repayment: Bank of India allows the maximum EMI of 36. Under exceptional circumstances, the bank allows maximum EMIs of 60.

BOI Star Pensioner Loan eligibility

  1.    Pensioners drawing pension via Bank of India branch
  2.    Family pensioners who draw the pension from the Bank of India branch
  3.    Retire professionals of Bank of India.

Documents Required for Pension loan:

Documents required for Pension Loans are:

  1.    ID Proof- The applicant needs to submit ID proof like Voter ID, DL, Adhar Card, etc.
  2.    Address Proof- Ration card, Adhar Card, Utility bills like electricity bill, telephone bill
  3.    Last six-month bank statement
  4.    Proof of retirement and the organization that the applicant had last worked
  5.    Pension slip

Dena Bank Loan to the Pensioners-

Purpose: Dena Bank offers pension loan to the pensioners so that they can meet their emergency financial requirement.

Processing Fees: The bank charges no processing fees from the pensioners.

Loan Limit: The pensioners can get the pension loan up to Rs 3 lac for a period of 36 months.

Interest Rate: 11.75%

Repayment: Dena Bank offers the repayment period of 36 months or 3 years to the pensioners.

Dena Bank Pension Loan eligibility-

The pensioners of State , Centra;  and Public Sector undertaking are eligible for pension loan from Dena Bank

The pension amount is at least 60% of the gross monthly pension after removing the EMI

Ex-staff member of Dena Bank

Documents Required for Pension loan Dena Bank:

Documents required for Pension Loans are:

  1.    ID Proof- The applicant needs to submit ID proof like Voter ID, DL, Adhar Card, etc.
  2.    Address Proof- Ration card, Adhar Card, Utility bills like electricity bill, telephone bill
  3.    Last six-month bank statement
  4.    Proof of retirement and the organization that the applicant had last worked
  5.    Pension slip

Home Loan to the Pensioners

The banks and NBFCs have become agile. They now offer home loan to the retired professionals and pensioners so that they can fulfil their dream. This home loan can be used for renovating, reconstructing or buying a new home. However, there are certain limitations to the same. The banks are a bit reluctant to provide a home loan to pensioners who are more than 75 years of age and some bank restrict the age limit to 70 years. Below is the tabular representation of the home loan providers to the pensioners along with maximum loan amount and repayment period.

 

Loan Provider Maximum Loan Amount Repayment Period
State Bank of India 1) 7,50,000 – 14,00,000

2) 2,50,000 – 5,00,000 (family pensioner)

Before the pensioner reaches the age of 75
United Bank of India Rs. 2 lac Before the pensioner reaches the age of 70
LIC Housing Finance NA Before the pensioner reaches the age of 70
Bank of Baroda Rs. 5 lac – Rs. 8 lac 77-78 years of age
Punjab National Bank Rs. 5 lac – Rs. 10 lac 60 EMIs for those who are below 75 years of age and for those who are above the age of 75, the bank allows 24 EMIs
Dena Bank Rs. 1.5 lac- Rs. 3 lac Before the pensioner reaches the age of 73
South Indian Bank Rs. 25 lac 15 year or till the pensioner reaches the age of 75
Bank of India Rs. 5 lac 60 EMIs

Important Point to Note:

The pensioners are eligible to take the home loan only in the case they are repairing, constructing renovating the new or existing house. The only condition is that the property should be in the name of the applicant.

The minimum monthly pension should match the parameters specified by the bank. For example, Bank of India has the specified the minimum salary of Rs. 5000.

The bank usually approves the loan to pensioners who are less than 75 years of age, but banks like United Bank of India doesn’t give a loan to those who are above the age of 70.

Our Role: Loanyantra is a one-stop destination for various types of loan. Whether you are working or retired or pensioners and are seeking for the right way to avail loan with minimum hassle then, you must connect with Loanyantra. On our portal, you can find all the information related to personal loan, home loan, etc. We also help you with the complete paperwork related to loan application and approval. Not only we help you find the right bank for your need but also bring the banking services at your doorstep so that you just concentrate on your dream and we can help you achieve the same.

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