Personal Loan for Pensioners - Key Details

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 at the discretion of the bank and will depend on factors such as the loan amount availed by you, repayment tenure, etc.

Eligibility for SBI Pension Loan

For retired Central and State Government employees

1. Pensioners should not be over the age of 76 years
2. Pensioners should be drawing their pension through any SBI branch
3. Pensions should be disbursed by Government Treasuries

For defence pensioners

1. Pensioners of the armed forces, Army, Navy, Air Force, Paramilitary, Rashtriya Rifles and Assam Rifles and Coast Guards are eligible
2. The pension payment order should be with SBI
3. There is no minimum age limit, but the maximum age is 76 years

Family Pensioners

1. Spouse who is authorized to receive the pension after the death of the pensioner
2. The family pensioner should not be more than 76 years of age

Central Bank of India Personal Loan to Pensioners

Central Bank of India offers personal loans for pensioners to meet any genuine financial need. Emergencies and family obligations can pop up at any time, and a loan can come to the rescue in these times of need. Central Bank of India offers attractive interest rates, concessions to spouses drawing family pension and do not charge processing fees.

Features of Central Bank of India Personal Loan for Pensioners

Purpose: Central Bank of India sanctions personal loans for pensioners for any genuine financial requirement. The loan is available as a term loan or an overdraft facility.

Processing Fees: There are no processing fees charged.

Loan Limit: Pensioners who are 75 years and below can get a maximum of 18 months' pension. The highest loan amount available is Rs.5 lakhs. For pensioners above the age of 75 years, a maximum of 12 months' pension is granted subject to a maximum of Rs.2 lakhs.

Interest Rate: The interest rate offered will be at the discretion of the bank and will depend on factors such as loan amount availed by you, the repayment tenure, etc.

Eligibility of Central Bank of India Personal Loan for Pensioners

1. Pensioners or family pensioners who draw their pension through any Central Bank of India branch
2. Pensioners who receive their pension from Treasury or the Defence Pension Disbursing Office as a direct credit to their savings account held at any branch of Central Bank of India
3. Pensioners or family pensioners receiving pension from Central Bank of India

PNB Personal Loan Scheme for Pensioners

Punjab National Bank recognises the need for extra finance for pensioners in times of emergencies, medical expenses and personal needs. The bank offers a personal loan at low rates of interest to help pensioners meet these obligations. All pensioners who draw their pension through PNB are eligible to get a personal loan.

Features of PNB Personal Loan for Pensioners

Purpose: To help pensioners meet financial needs including personal and medical expenses.

Processing Fees: There are no processing fees charged. There is a fee of Rs.500 plus GST applicable as documentation 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.

Repayment: The loan must be repaid in maximum 60 EMIs. For pensioners above the age of 75 years, the maximum tenure granted is 24 EMIs. The repayment will be calculated on the basis of the net monthly pension so that all deductions including the loan EMI does not exceed 50%.

Margin: There is no margin set for the Punjab National Bank personal loan for pensioners.

Guarantor: The spouse who is eligible for the family pension must stand as guarantor. If the pensioner has a child who is earning (preferably employed by the Government), the child can stand as guarantor. Third party of net means enough to cover the loan amount can also stand as guarantor.

Interest Rate: The interest rate offered on the PNB Personal Loan for Pensioners is 11.75% per annum.

Eligibility criteria for PNB Personal Loan for Pensioners

All pensioners who are drawing their pension through any Punjab National Bank branch are eligible to apply for a personal loan.

BOI Star Pensioner Loan Scheme

Purpose: Personal loans in the form of Demand Loan, Term Loan, or Overdraft is granted to pensioners drawing pension through the bank and retired employees of Bank of India.

Processing Fees: There are no processing charges for pensioners who are 60 years and above. For all others, a one-time processing fee of 2% of the loan amount is applicable. The processing charges are subject to a minimum of Rs.500 and a maximum of Rs.2,000. Stamp paper and loan agreement charges are also applicable.

Loan Limit: Bank of India maximum quantum of net monthly pension loan is up to 20 times for secured loans and 15 times for clean loans, with a maximum loan sum of Rs.10 lakh.

Interest Rate: The interest rate charged on this loan is 10.85% per annum. If the applicant offers liquid security exceeding 25% of the loan amount, an additional interest concession of 1 basis point will be granted.

Repayment:  For unsecured loans, the maximum EMIs granted is 60 months

Eligibility criteria for BOI Star Pensioner Loan

1. Regular pensioners drawing their monthly pension through a Bank of India branch.
2. Family pensioners drawing their monthly pension through a Bank of India branch.
3. Retired employees of Bank of India not including dismissed or compulsorily retired employees.

Pensioners have a choice from different loans to finance personal needs. The bank through which the individual draws the pension will offer a loan provided the circumstances are favourable. These loans can be used to finance just about anything you need.

You can also visit your bank's nearest branch along with the relevant documents in order to apply for a personal loan for pensioners scheme. A representative from the bank will get in touch with you and will help you with the application process.

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