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.
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 readymade house or flat
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:
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. Dena Bank Home Loan
Dena Bank offers a loan amount of up to 3 Lakhs, on the condition that you repay the amount in full before reaching the age of 73 years.
Before applying for the loans mentioned above, you should be aware of the fact that you will be required to repay the loan along with interest. Moreover, you will also be liable to pay other charges such as upfront fee, processing fee, prepayment fee, and so on. unless specified otherwise. Hence, make sure you all aware of all the auxiliary charges, so that there is no additional strain on your finances!
Now that you know all about home loan offers for pensioners in India, wait no more before you apply for a loan and move into the house of your dreams. After all, age is just a number!
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