Best Personal Loan for Pensioners
The banking and financial system in India has considerably transformed itself. Not only
The pensioners' loan offered
In this blog, we will discuss
Benefits of Personal Loan for Pensioners
Life after retirement is
✔️ No Collateral Needed- The valuable assets of the pensioners remain safe if they opt for a personal loan to meet a financial emergency.
✔️ Lower Interest Rates- Most of the lenders would allow the pensioners to take loans at a lower rate of interest. So, pensioners might as well get the benefits of a low-interest secured loan without having to risk any of their assets.
✔️ Variety of Usage- The usage of personal loans
✔️ Easy Documentation- Being an unsecured loan, personal loans entail lesser and easier documentation.
✔️ Quick Approval- Personal loans are the quickest loans in the
Things Pensioners should keep in Mind
before Applying for a Personal Loan
Pensioners should be extra cautious while getting any
✔️ Borrow as per your need and not as per your eligibility
You may be eligible for a higher loan amount but
✔️ Shop around for the right deal
The first offer you get may be
✔️ Assess the overall cost of the loan
A personal loan is not just about the interest rate. There are several other costs involved in this borrowing such as the processing fee, prepayment charges, late payment fee,
✔️ Check your credit score before applying
Your credit score plays a major role in grabbing you the right personal loan deal. Being a pensioner, if you have a good credit score, your chances of approval will be high. With a good score, you can also avail a higher loan amount. If you have some time on hand before applying, you can work towards improving your CIBIL score. This can
✔️ Consider the alternatives
Although personal loan is the easiest to get and does not require any collateral, it is also among the most expensive loans to get. Hence,
✔️ Avoid add-on offers on loans
Once you have taken a personal loan,
Use Bajaj Finserv Personal Loan EMI Calculator at
Before you sign on the dotted line, you must do thorough research. A good way to find out the right combination of amount, tenure and interest rate is to use an EMI Calculator.
Most of the banks have their own personal loan EMI calculator available on their website. You just have to enter the loan amount, tenure for which you would like to take the loan and the interest rate that you think you can afford. After this, when you calculate, the tool will show you the EMI that you would have to pay per month along with the total interest that you would have to pay on the loan at the given rate of interest.
You can check the EMIs for different loan amounts and interest rates to arrive at the right deal.
Why use the EMI Calculator?
- It gives you fair insight into the personal loan offers.
- It allows you to compare loan offerings from different banks.
- The tool is free of cost and can be used as many times as you want.
1. State Bank of India Pension Loan
State Bank of India- SBI is one of the leading government banks in India that also offers personal loan to the pensioners. The bank extends the loan to retired Central and State Government. The objective behind this loan is to help the pensioners meet financial needs.
Processing Fees: The defense pensioners are not charged any processing fee. For others, the processing fees can be up to 0.5% of the loan amount plus taxes. This minimum processing fees charged by SBI is ₹ 500 plus taxes.
Loan Limit: Minimum Loan Amount – ₹ 25,000
Maximum Loan Amount - ₹ 14,00,000
Interest Rate: 13.05% per annum.
Repayment Period- Before the pensioner reaches the age of 75
Eligibility for SBI Pension Loan:
- The pensioners should not be more than 76 years
- Central and State Government retired professional can apply for this loan
- Retired Central and State Government employees
2. Central Bank Of India Pension Loan
Central Bank of India – This leading bank provides personal loan to the pensioners and retired professionals. Central Bank of India offers a lucrative interest rate and there are no processing fees thus making it easy for the pensioners to avail the loan.
Processing Fees: There are no processing fees
Loan Limit: ₹ 5 Lakhs for the pensioners who are below 75 years and ₹ 2 Lakhs for the pensioners who are above 75 years.
Interest Rate: 11.70%
Eligibility for Central Bank of India Pension Loan:
1. The pensioners should be drawing a pension via Central Bank.
3. PNB Pension Loan
Punjab National Bank – PNB is known for providing a range of loans and financial schemes to the people. The bank provides personal loan to the pensioners and retired professionals. PNB offers a lucrative interest rate and there are no processing fees thus making it easy for the pensioners to avail the loan.
Processing Fees: There are no processing fees charged by the Punjab National Bank but it does charge ₹ 500 as documentation charge.
Loan Limit: Minimum ₹ 25,000
Maximum – For pensioners who are up to 70 years of age- ₹ 10 Lakhs
For pensioners who are above 70 years - ₹ 7.5 Lakhs
For pensioners who are above 75 years - ₹ 5 Lakhs
Interest Rate: 2.60% above the MCLR.
Repayment Period- 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
Eligibility for PNB Personal Loan for pensioners:
The pensioner should be drawing pension via Punjab National Bank
4. Bank of Baroda Pension Loan
Bank of Baroda Loan to Pensioners- Bank of Baroda is one of the leading banks providing loans and other financial products to the individuals looking for financial help.
Processing Fees: There are no processing fees for the pensioners and family pensioners of BOB but others are subjected to pay the processing fees of ₹ 1000
Loan Limit: ₹ 8 Lakhs for the pensioners who are below 70 years and ₹ 1.5 Lakhs for the pensioners who are above 70 years.
Interest Rate: The base rate plus 2.00% p.a.
Repayment Period- 77-78 years of age
Eligibility for Bank of Baroda Pension Loan:
- Pensioners should be drawing a pension from BOB
- Family pensioners of BOB
- The age of pensioners should not be more than 75
5. Bank Of India Pension Loan
BOI- The Bank of India or BOI offers Star Pensioner Loan Scheme to the pensioners. Pensioners drawing their pension from Bank of India or are retired employees of Bank of India is eligible to get a personal loan from Bank of India.
Processing Fees: There are no processing fees charged from pensioners who are above the age of 60. Pensioners who are below the age of 60 are charged a processing fee of 2% of the loan amount.
Loan Limit: Bank of India offers loan between₹ 3 Lakhs to ₹ 5 Lakhs. The family pensioners can get the loan of ₹ 1.5 Lakhs
Interest Rate: 2.00% + BSS (0.30%) over 1 Year MCLR
Repayment Period- 60 EMIs
Eligibility Criteria for Bank of India Pension Loan
- Retired Bank of India professionals
- Family pensioners from Bank of India
- Pensioners drawing pension through Bank of India branches
Documentation for Personal Loan for the Pensioners-
The documentation for the banks remains almost the same. Following are the documents that you would require to produce at the time of personal loan application:
- ID Proof- Pensioners need to submit Voter Card, Aadhaar Card, Passport, etc.
- Address Proof- In order to submit your address proof, the bank will ask you to submit utility bills or telephone bill, electricity bill.
- Latest 6 months bank statement
- Proof of retirement and proof showing the details of your last employer.
- Pension slip
As mentioned above, banks have already become very flexible when it comes to providing personal loan to the pensioners. Apart from the above-mentioned banks, there are other banks that offer personal loan to the pensioners. Most banks have set an upper age limit of 75 years while others restrict the age to 70 years. The personal loan not only helps them to meet their needs but also their aspirations and wants.
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Best Bank For Pension Loan
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