5 Best Home Loans for Pensioners

5 Best Home Loans for Pensioners

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 Interest Rates
SBI Home Loan

7.90% Apply Now

PNB Home Loan

8.60% Apply Now

South Indian Bank Home Loan

8.85% Apply Now

Bank of Baroda Home Loan

8.15% Apply Now

Home Loans for pensioners are offered for the following purposes:

  • Construction, renovation or repair of an existing house
  • Construction, renovation or repair of a new house
  • Purchase of a plot of land
  • Purchase of a ready made house or flat 


HDFC Home Loan Interest Rates



 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.

Below mentioned are some of the Best Home Loan Provider in India for pensioners:


SBI Home Loan Apply


1. State Bank of India Home Loan 

To apply for a Home Loan in SBI, it is essential that you repay the loan amount before you reach the age of 70. If you are an individual pensioner, you can expect a loan amount ranging from 7.5 Lakhs to 14 Lakhs, However, if you are a family pensioner, the loan limit will be confined to 2.5 Lakhs to 5 Lakhs.

2. Punjab National Bank Home Loan

If you choose to take a Home Loan from PNB Bank, you can expect to get anywhere between 5 Lakhs to 10 Lakhs, depending on your pension amount. In case you are below the age of 75, the bank will allow you to repay the loan amount in 60 equated monthly instalments (EMIs). However, if you are 75 years or above in age, you will be required to repay the amount in 24 EMIs.

3. South Indian Bank Home Loan

If you wish for a higher loan amount, South Indian Bank 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.

4. Bank of Baroda Home Loan

Under Bank of Baroda’s scheme, you can easily get a loan amount ranging from 5 Lakhs to 8 Lakhs. You can conveniently repay the amount till you reach the age of 77-78 years, depending upon the conditions of your loan agreement, and your age at the time when your loan was sanctioned. An incredible benefit of taking a Home Loan from Bank of Baroda is that you won’t be required to pay the processing fee and even prepayment penalty, as a special concession.

5. LIC HFL Home Loan

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.

FAQs on Home Loans for Pensioners

✅ Can a Pensioner Get a Loan?

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.

✅ What Is a Prepayment Fee?

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.

✅ What Is a Processing Fee?

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.

✅ What are the documents required to apply for a home loan for Pensioner?

Pensioners are required to submit the following documents for availing home loan:

  • 1 passport size coloured photograph
  • Photo Identity Proof: Driving License/Passport/PAN/Voter ID/Aadhaar Card
  • Residence Address Proof:  Registered Rent Agreement /License/ Utility Bill/ Aadhaar Card
  • Age Proof: Passport/ Aadhaar Card/ PAN Card
  • Income Proof:  Receipt of pension returns/ Pension Certificate/ Bank Statement showing the proof of pension getting credited.

✅ Do I Require a Guarantor to get a home loan for Pensioner?

No, you don’t need any guarantor for availing a pensioner home loan.

✅ What should be my age to avail Home Loan for Pensioner?

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.

✅ How much loan amount can I get under Home Loan to Pensioners scheme?

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.

✅ What is the maximum repayment tenure available for Home Loan to Pensioners?

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.


Also Read: Attention Home Loan Customers! Here’s How RERA Can Impact You


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