Once you retire from work, you usually want a comfortable life, without too many obligations to meet. However, if you had been living in a home provided by your employer, your retirement might be the time when you ought to start looking for an ideal Home Loan. While this may seem like a daunting task, the fact is, numerous banks across India readily offer Home Loans to senior citizens.
|Best Bank for Home Loan||Product Name||Interest Rates||Tenure|
|State Bank of India Home Loan||SBI Pension Loan||8.40% - 10.05%||Up to 84 months or until the borrower turns 78 years|
|HDFC Home Loan||Home Loan||8.50% - 9.15%||Up to 30 years|
|Union Bank Home Loan||Home Loan||8.40% - 10.80%||Up to 30 years|
|South Indian Bank Home Loan||Home Loan for Senior Citizens||9.57% - 11.37%||Up to 15 years or till the borrower turns 75 years|
|LIC HFL Home Loan||Home Loan for Pensioners||8.40% - 10.50%||Till the borrower turns 70 years of age|
|Bank of Maharashtra Home Loan||Maha Super Housing Loan Scheme||8.50% - 10.90%||Up to 30 years or till borrower turns 70 years, whichever is earlier|
|Indian Bank Home Loan|
IB Home Loan
IB Home Advantage
|8.40% - 10.20%||Up to 30 years or till borrower turns 70 years, whichever is earlier|
|PNB Housing Home Loan||PNB Home Loan for Pensioners||8.50% - 10.75%||Up to 30 years or till borrower turns 70 years, whichever is earlier|
Tip: Best Home Loan for Salaried Person before applying for a loan
In order to ensure that only deserving candidates benefit from such loans, a vast majority of banks adhere to the below-mentioned guidelines, before approving the Home Loan Application:
The pensioner should have served a reputed company, an education institution, or must have been in service with the central or state government, in a public sector undertaking (PSU), in the defence or a part of Voluntary Retirement Scheme (VRS).
Most banks entertain loan applications only from those pensioners who draw a pension from the same bank. However, some banks do offer the exception of approving loan applications of pensioners with pension accounts in other banks. In such cases, the banks may ask the applicants for post-dated cheques as a measure of ensuring security.
A large number of banks offer loans only to those pensioners who draw sufficient income. For instance, United Bank of India mandates a minimum pension of 5,000. Taking this into consideration, it wouldn’t be wrong to say – the higher your pension, the better are your chances of getting a swift approval. Moreover, your loan amount will heavily depend on your income. In this case, the higher your income, the higher you may expect your loan amount to be.
When it comes to age, some banks offer loans only to the applicants below the age of 75, while others have capped the limit to a maximum of 70 years.
That being said, it is important to understand that not all banks offer loan to pensioners. The reason behind this is simple. The tenure of Home Loans is usually long, and given the age of the pensioners, such a loan becomes a risky proposition. Hence, it is strongly advised that you get in touch with your bank, and understand their program, terms and conditions before filing your application.
Additional Info: Also Check Best Banks for Home Loan in India in 2023
SBI Pension Loan is a type of personal loan that can be used by pensioners to fulfil any personal needs, including the purchase of a house. To Apply for a Home Loan in SBI, it is essential that you repay the loan amount before you reach the age of 76. You can avail loan amount of anywhere between Rs. 2.50 Lakhs and 14 Lakhs with repayment tenure of up to a maximum of 84 months. Loan amount and tenure depends on the age and pension income of the borrower. The loan comes with a processing fee of 0.50% of the loan amount (minimum Rs. 500 and maximum Rs. 2,500 + GST).
For Central & State Government Pensioners
For Defence Pensioners
For Family Pensioners
Any resident Indian having a regular income source can avail this loan. There is no maximum loan limit for Union Bank of India Home Loan. The loan has to be repaid within 30 years or up to the age of 75 years, whichever is earlier. This loan comes at a processing fee of 0.50% of the loan amount (subject to a maximum of Rs. 15,000 + GST).
If you wish for a higher loan amount, South Indian Bank Home Loan for Senior Citizens can prove to be a great alternative, as it offers loans of up to 25 Lakhs. Moreover, the repayment options offered by the banks are rather flexible. You can choose to repay the amount over a span of 15 years, provided that you do so before you reach the age of 75 Years. The processing fee for the loan is 0.25% of the loan amount.
LIC Housing Finance Limited is one of the trusted names in the industry. There are different home loan products for the seniors (before retirement) and the pensioners (after the retirement). The Home Loan for pensioners can be borrowed for the amount as per eligibility and pension income. The amount can be used for purchase, construction, or extension of House / Flat. The loan can be borrowed for up till 70 years of age. You will require a guarantor to avail of the LIC HFL Home Loan.
Additional Info: Also check How to Apply for Pradhan Mantri Awas Yojana
Bank of Maharashtra offers housing loan scheme for pensioners for the purchase of a plot and construction thereon, construction/ acquiring of a new or existing house/flat and extension of an existing house/flat, and for repairs/ renovation/ alteration to an existing house/flat. Maximum repayment tenure allowed is up to 30 years or borrower reaching the age of 75 years, whichever is earlier (depending on the purpose of acquiring the loan). The loan comes at a processing fee of 0.25% of the loan amount (maximum Rs. 25,000) and documentation charges of 0.10% of the loan amount (maximum Rs. 10,000).
Pensioners having adequate income to repay the loan can Apply for Indian Bank’s IB Home Loan and IB Home Advantage. The repayment tenure of both the loans is up to 30 years or up to the age of 70 years, whichever is earlier. The processing fee is communication at the time of loan application.
United Bank of India offers housing loan for pensioners to fulfil their housing related needs. The loan amount cn be utilised for renovation, extension, repair, furnishing of self-occupied house/ flat, or purchase/construction of a new house/ flat. Maximum loan amount offered is Rs. 10 Lakhs.
Additional Info: Also Check DDA Housing Scheme
Additional Info: Check 30 Lakh Home Loan EMI Apply Online.
Yes, you can apply for the Personal Loan & Loan Approval depends on your Eligibility Criteria. Most banks consider loan applications only from the self banks Pension account. However, some banks & NBFC offer Home Loan to all pensioners for minimum loan tenure.
If you repay the home loan before the completion of the tenure, you have to pay a certain fee applicable to your lender which is known as a prepayment fee. The prepayment fee usually varies from 2-3% depending on the lender which you have chosen.
A processing fee is a charge which you have to pay to your lender once your home loan application gets approved. It is a one-time fee that you have to pay to your lender.
Pensioners are required to submit the following documents for availing home loan:
No, you don’t need any guarantor for availing a pensioner home loan.
Some banks offer Home Loan to Pensioners below the age of 75, while others have fixed the limit to a maximum of 70 years. However, with the Bank of Baroda, you can conveniently repay the loan amount till you reach the age of 77-78 years.
You can get a maximum loan amount of up to Rs. 25 Lakhs (at South Indian Bank) under the scheme, depending on your repayment capacity.
You can get maximum repayment tenure of up to 25 years for the Pensioners Home Loan scheme, depending on your age, repayment capacity, and other factors.
Additional Info: Also check SBI Home Loan EMI Calculator
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