Top 5 Personal Loan for Pensioners in India
The need for finance can hit us at any time whether we are prepared or not. In the case of financial emergencies, personal loans are of great help since there is no specific purpose tied to the loan. Though personal loans are available in abundance in the market, pensioners may find it harder to get an approval. Banks consider older folk a greater risk and are more reluctant to lend to them. But retired folk who draw a pension are still in a more favorable realm. Here are a few top banks that offer personal loans to pensioners with good benefits.
SBI Pension Loan
State Bank of India offers personal loans to retired employees of the Central or State Government. The loan is also extended to Defence Pensioners. Family pensioners can also apply for this loan.
Features of SBI Pension Loan:
Purpose: You may avail of the loan to meet any financial need or family obligation.
Processing Fees: There are no processing fees charged for defence pensioners. Nominal fees are charged otherwise. The processing fees amount to 0.50% of the loan amount plus tax, subject to a minimum of Rs.500 plus tax. The loan is processed without any other hidden charges.
Loan Limit: The minimum loan amount sanctioned is Rs.25,000. The upper limit depends on the pension drawn and the age of the applicant. The loan amounts also differ between regular pensioners, defence pensioners and family pensioners. The maximum loan amount sanctioned is Rs.14 lakhs.
Repayment: The loan has to be repaid through standing instructions set to debit the pension account with the EMI amount on the set date.
Margin: There is no margin set for the SBI pension loan.
Guarantor: The spouse who is eligible for the family pension must stand as guarantor. In case the spouse is absent, then any other family member or third party of worth can stand as guarantor.
Interest Rate: The interest rate offered on the SBI Pension Loan is 3.80% above 2-year MCLR. Currently, the rate of interest is 13.05% per annum.
Eligibility for SBI Pension Loan:
- For retired Central and State Government employees
- Pensioners should not be over the age of 76 years
- Pensioners should be drawing their pension through any SBI branch
- Pensions should be disbursed by Government Treasuries
For defence pensioners
- Pensioners of the armed forces, Army, Navy, Air Force, Paramilitary, Rashtriya Rifles and Assam Rifles and Coast Guards are eligible
- The pension payment order should be with SBI
- There is no minimum age limit, but the maximum age is 76 years
Family Pensioners
- Spouse who is authorized to receive the pension after the death of the pensioner
- The family pensioner should not be more than 76 years of age
