Personal Loan for Pensioners

Personal Loan are usually offered to borrowers who are employed with a stable income under 60 years. Those who have retired are mostly not eligible for these loans. However, select Banks and NBFCs offer personal loans, especially for senior citizens who have a personal loan.

Banks and NBFCs offering Personal Loans to Pensioners

1. State Bank of India (SBI) Pension Loan

Purpose: To meet urgent cash requirements for purposes like the child’s wedding, paying medical bills, vacations, home renovation and much more.

Eligibility: Pensioners/Family Pensioners drawing pension through SBI.

Features:

• Interest Rate: 11.60% p.a. onwards
• Loan Types: SBI Pension Loan, Jai Jawan Pension Loan, Pension Loan to Treasury/ PSU Pensioners & Pre-Approved Pension Loans (PAPNL)
• Loan Amount: As per the applicant’s profile and creditworthiness
• Loan Tenure: 72 months (Loan to be repaid by 78 years of age)
• EMI/NMP ratio: May not exceed 50% in all other type of pensioners
• Prepayment Charges: 2% on prepaid amount

2. Bank of Baroda (BOB) Loan to Pensioners

Purpose: To meet urgent financial needs other than speculation

Eligibility: Age: 21 – 75 years & Pensioners/ family pensioners drawing pension through our Bank’s branches are eligible

Features:

• Interest Rate: 9.50% p.a. onwards
• Repayment Tenure: Up to 60 months
• Processing Charges: Pensioners / Family Pensioners of our Bank: Nil & For Others: Rs. 1000 plus GST
• Foreclosure Charges: Nil

Loan Amount:

Punjab National Bank (PNB) Personal Loan Scheme for Pensioners

Purpose: To meet personal requirements, including medical expenses and to offer funding assistance to public drawing pension through Punjab National Bank

Eligibility: All the types of pensioners drawing pension through PNB branches

Features:

• Interest Rate: 11.35% p.a. onwards
• Loan Type: Demand Loan/ Term Loan/ Overdraft
• Loan Amount: Up to Rs. 10 lakh
• Repayment Tenure: Up to 5 years
• Processing Fee: Nil
• Security: Guarantee required of spouse/earning children/third party (Any one)
• Repayment: Maximum 60 EMIs & In case of pensioners above 75 years: Maximum 24 EMIs
• Margin: Nil

Central Bank of India: Cent Pensioners

Purpose: For personal requirements, excluding any speculative activity or investment in real estate.

Eligibility: Pensioners/Family Pensioners drawing pension through Central Bank of India, including ex-staff

Features:

• Interest Rate: 10.60% p.a. onwards
• Nature of Loan: Demand loan and Overdraft
• Loan Amount: Up to Rs. 10 lakh or 18 times the monthly pension
• Minimum Credit Score: 700
• Repayment Tenure: Up to 60 months
• Processing Fee: Nil
• Co-borrower: Pensioner’s spouse or legal heir(s) of the family pension beneficiary

Bank of India (BOI) Star Pensioner Loan Scheme

Purpose: For various personal uses like paying medical bills, home renovation, debt consolidation, etc. Not for any speculative purpose.

Eligibility: Regular pensioners or family pensioners drawing regular monthly pension via BOI & Retired employees (other than dismissed/compulsorily retired) are eligible

Features:

• Interest Rate: 11.60% p.a. onwards
• Nature of Loan: Term Loan, Demand Loan, Overdraft (reducible as per repayment schedule)
• Loan Amount: Up to Rs. 10 lakh
• Repayment Tenure: Up to 5 years
• Processing Fee: 2% of the loan amount
• Prepayment Charges: Nil

Shriram Finance Loan for Pensioners

Features:

• Interest Rate: 12% – 42% p.a.
• Loan Amount: Rs. 25,000 – Rs. 5 lakh
• Repayment Tenure: Up to 5 years
• Processing Fees: 0.50% – 5% of the loan amount + GST
• Collateral: Nil

Eligibility Criteria for Availing Personal Loan for Pensioners

Find below the basic eligibility criteria defined by various banks offering personal loans to pensioners that shall vary from lender to lender:

• Age criteria: 55-65 years or above (Usually varies from bank to bank)
• Income: Ideally, Rs. 2-3 lakh per annum. Stable and continuous income from pensions, investments and rentals helps in securing personal loans for pensioners
• Credit Score: 750 and above is preferred for better negotiation. In case you do not know about your score, you can check your credit score for free by clicking here.
• Repayment Capacity: Lenders access your repayment capacity, if you can repay the loan amount within defined tenure