Life is full of Uncertainties, and emergencies can happen with anyone whatever be age or gender. Financial cash crunches is one of them. Personal Loan being unsecured and multipurpose is the most helpful tool for people in these situations. Although Personal Loan is easily available it has some criteria to be fulfilled and AGE is one of them. It is an obvious thing that after 60 the income of a person gets reduced and hence the repaying capacity too. Every lender is concerned about the repayments and keeping this fact in mind most of the lenders don’t lend a Personal Loan to senior citizens. However, this does not mean that is the end of the road, there are some banks which offer Personal Loan to pensioners.

Eligibility for a Personal Loans for Pensioners

Employment

The borrower should be a central or state government employee. He or she can get the loan from the bank in which he/she is having their pension account.

Security/Collateral

Pension Loans generally doesn’t need any collateral as they are secured by the borrower’s pension which is a permanent source of income. But some requires a guarantor which can be the borrowers spouse or any close one who is ready for it.

Repayments

The repayment is done by EMIs only same as that of the other loans. The tenure period varies from bank to bank, which is generally from 12 to 60 months.

Personal Loan for Pensioners/Senior Citizens

  1. State Bank of India Pension Loan for Pensioners

State Bank of India offers personal loan to the senior citizens who are retired from central or state government. The processing fees is very low for this loan. The loan is offered even in case of family pension. This loan can be offered to a retired person till the age of 76.

Eligibility: The pensioner should not be above 76 years of age and be employed in central government or any state government. The pensioner should have his pension account in SBI.

Loan Amount: The starting loan amount is from INR. 25,000 and the maximum amount goes to 18 times to the monthly pension of the pensioner. However there is some limit,

  • INR 14 lakhs for the age up to 72 years
  • INR 12 lakhs for age between 72 years and 74 years
  • INR 5 lakhs for age between 74 years and 76 years

a. SBI Pension Loans for Defense Pensioners

Eligibility: Pensioners of Indian Army and other armed forces such as- Navy, Army, Air Force, Paramilitary forces like CRPF, CISF, BSF, ITBP, Coast guards, Rashtriya Rifles and all who is having their pension account with SBI can get this Pension Loan under this scheme.

Loan Amount: The minimum amount is INR. 25,000 and it goes to a maximum amount which can be 18 times of the monthly pension of the borrower. This has a limit of,

  • INR 5 lakhs till the age of 72 years
  • INR 4.5 lakhs till the age of 74 years and
  • INR 2.5 lakhs till the age of 76 years.

b. SBI Pension Loans for Family pensioner (including defense family pensioners)

Family pensioners are generally the spouse of the main pensioner, the spouse is now entitled to receive the pension after the death of pensioner. In this case also the loan is given to the family pensioner till the age 76 only.

Loan Amount: The minimum Loan amount INR. 25,000 and it goes to a maximum amount which is 18 times the monthly pension of the borrower but it has some limit,

  • INR 5 lakhs till the age of 72 years.
  • INR 4.5 lakhs till the age of 74 years
  • INR 2.5 lakhs till the age of 76 years.

How Much Do You Need to Save for Retirement?

2. Central Bank of India Personal Loan for Pensioners

Eligibility: Pensioners who are getting their pension through Central Bank of India are eligible for a personal loan against their pension. Pensioners who are getting a pension as a family pension are also eligible for this scheme.

Loan Amount: 

  • For a pensioner who is below 75 years he/ she can get a loan amount which can be 18 times of their monthly pension, but up to a maximum amount of INR. 5 lakhs.
  • For a pensioner above 75 years he/she can get a loan against their pension which can be 12 times to their monthly pension, but up to a maximum amount of INR. 2 lakh.

Debt Consolidation @45 for a Happy Retired Life!

3. Punjab National Bank Personal Loan Scheme for the Pensioners

PNB understands that requirements can come at any age and hence  aims to provide financial assistance to the public drawing pensioners to meet meet their personal needs along with the medical expenses.

Eligibility: All the pensioners who are drawing their pension from any branch of PNB are eligible for this Personal Loan Scheme.

Loan Amount: The minimum amount for which this loan can be opted is INR. 25,000.

Maximum Loan Amount:

            • For pensions up to the age of 70 years- the maximum loan amount is INR. 10,00,000 or it can be up to 18 times of net monthly Pension of the pensioner and  For the Defence pensioners it is 20 times to the monthly pension.
            • For the pensioners above 70 years of age- the maximum loan amount is INR 7.50 lakhs OR it can be 18 times to their net monthly Pension and in case of Defense Pensioners it is 20 times of their net monthly pension.
            • For the pensioners above 75 years of age- maximum loan amount is INR. 5.00 lakhs OR it can be up to 12 months of pension.

Financial Milestones to Achieve Before You Turn 50

4. BoI Star Pensioner Loan Scheme

Eligibility: This scheme offers personal loan to the regular pensioners including the family pensioners too who are drawing their pension through BoI branches.

Types of loans offered under this scheme – Demand Loan/Term Loan/Overdraft (reducible as per repayment schedule)/ Overdraft

Loan Amount:

  • For pensioners not above 75 years of age the maximum loan amount is up to 15 times the net monthly pension which can be a maximum of INR 5 lakhs. In case the pensioner receive pension in BOI account and the PPO is held by DPDO or treasury then they are eligible for a loan amount up to 15 times but that has a  maximum value of INR. 3 lakh for normal pensioner and INR. 1.5 lakh for family pensions.
  • For the pensioners above 75 years of age the maximum loan amount is up to 1 lakh.

NOTE- The net take home pension of the borrower should be a minimum of 40% after deduction of loan installment.

Basic Rules to Follow When Taking a Loan

5. Allahabad Bank Personal Loan for Pensioners

Allahabad Bank offers Personal Loans to all State Government, Central Government employees who is retired and whose monthly pensions are credited through Allahabad Bank branches.

Eligibility: The pensioner should not have the age more than 73 years, and the loan should be repaid before the pensioner turns 75.

Loan Amount:

        • The minimum loan is INR 25,000.
        • However, a pensioner can avail an amount which is equivalent to 10 times of their monthly pension.
        • Pensioners who are up to 65 years of age, can get a loan up to INR 2 lakhs under this scheme.
        • Pensioners who are above 65 years of age can get a loan up to INR 1 lakhs under this scheme.

No processing fee is charged regarding this loan. The maximum tenure in which one has to repay this loan is set at 48 months.