5 Top Banks That Offer Personal Loan to Pensioners

Personal Loans are essentially given to meet multiple financial requirements. No collateral security is insisted for Personal Loans, i.e., they are basically unsecured loans. Besides, no margin is stipulated.

For retired persons who are drawing a pension, the influx of income becomes limited. In case of urgent need of funds to meet medical exigencies, education expenses of children or remodeling the present home, seeking Personal Loans for pensioners is the best option. The main criteria for considering the Personal Loan will be that the borrower’s pension should be drawn through any branch of the lending bank.

Listed below are some of the top banks that provide affordable Personal Loans for Pensioners.

1. Punjab National Bank

Punjab National Bank is a state-owned commercial bank based in New Delhi. It is one of the leading commercial banks all over India providing banking and financial services to individuals and commercial establishments. They have a wide range of products and PNB Personal Loans to pensioners is one of them.

Eligibility:

• All types of pensioners and family pensioners.

Loan Quantum:

• Minimum Rs. 25000/-
• Up to 70 years: maximum of Rs. 10.00 lakhs or 18 months’ net pension; and in case of defense pensioners 24 months’ net pension, whichever is lower.
• Above 70 years and up to 75 years: maximum Rs. 7.50 lakhs or 18 months’ net pension; and in case of defense pensioners 24 months’ net pension, whichever is lower.
• Above 75 years: maximum Rs. 5.00 lakhs or 12 months’ net pension whichever is lower.

Interest:

• Base Rate + 2.50%

Repayment:

• Maximum period of 60 months.
• If the pensioner is above 75 years, the maximum repayment period is 24 months.
• Repayment will be fixed in such a way that all deductions including the proposed Personal Loan instalment is not over 50% of the net monthly pension.

Security:

• Personal Guarantee of spouse eligible for family pension or guarantee of children who are employed will be obtained.

Other features:

• Processing charges: Nil
• Documentation Charges: Rs. 500+GST

Pensioners can visit nearest PNB branch to avail Personal Loan facility or apply online.

2. Allahabad Bank

Allahabad Bank is a nationalized Bank with its headquarters at Kolkata and is providing financial and banking services to individual and commercial establishments. Allahabad Bank Personal Loan to pensioners is one of the various retail loan products provided by the bank.

Eligibility:

• All pensioners not over the age of 73 years.

Quantum:

• 10 months of net monthly pension with a minimum of Rs.25000/-
• For pensioners up-to 65 years upper limit is Rs.2.00 lakhs
• For pensioners above 65 years, the upper limit is Rs. 1.00 lakh

Repayment:

• Maximum period is 48 months
• All deductions including the instalment of proposed Personal Loan should not exceed 50% of the net monthly pension.
• Loan amount should be repaid in full before the pensioner attains 75 years of age.

Interest:

• MCLR+3.00% p.a.

Security:

• Personal guarantee of spouse eligible for a family pension will be obtained.

3. State Bank of India

State Bank of India is one of the biggest heterogeneous financial institutions in India, Headquartered in Mumbai. The banking Major provides a wide range of products and services for individuals, corporates, commercial enterprises and public bodies through its branches, subsidiaries, and joint ventures. SBI Personal Loan for pensioners is one of them.

Eligibility:

• All type of pensioners not over the age of 76 years.

Quantum:

• For Central and State government pensioners, family pensioners, the minimum quantum is Rs. 25000/-. Maximum is 18 months’ pension with different upper limit cap for different age groups.
• For defense pensioners minimum quantum is Rs. 25000/-. Maximum limit is 36 months’ pension with an upper limit of Rs 14.00 lakhs for pensioners below 56 years and also 18 months’ pension with different upper limit cap for different age groups of pensioners above 56 years.

Interest:

• Interest at 3.80% above 2 years MCLR.

Repayment:

• 84 months for Defense pensioners up-to 56 years
• 60 months for Defense pensioners above 56 years up to 72 years
• 60 months for other pensioners up-to 72 years
• 48 months for all pensioners above 72 years up to 74 years.
• 24 months for all pensioners above 74 years up to 76 years.

Other features:

• No processing charges for defense pensioners.
• For others 0.50% of the loan amount with a minimum of Rs. 500/- plus GST.
• If the loan is prepaid, prepayment charges at 3% will be levied.

Visit the nearest SBI branch to avail the Personal Loan to meet urgent financial requirements or apply online.

4. Bank of Baroda:

Bank of Baroda is one of the leading nationalized banks headquartered at Vadodara. It provides various loan products to individuals and commercial establishments. Bank of Baroda Personal Loan to pensioners is one of their popular products.

Eligibility:

All pensioners drawing pension

Quantum:

• 18 times monthly pension
• For regular pensioners of less than 70 years old, the maximum limit is Rs. 8.00 lakhs; for pensioners above 70 years, the cap is set at Rs.5.00 lakhs
• Maximum cap for a family pensioner of less than 70 years is Rs.3.00 lakhs. Above 70 years, it is Rs. 1.5 lakhs

Repayment:

• Maximum period between 3 to 5 years.
• Monthly deduction including EMI of proposed loan should not exceed 60% of monthly pension.

Interest:

• Base Rate + 2% p.a.

Security:

• Nil

Visit the nearest BOB branch to avail the Personal Loan or apply online.

5. Vijaya Bank

Vijaya Bank is a public sector bank with its corporate office at Bangalore. It offers a wide range of loan products, including Vijaya Bank Personal Loan to pensioners.

Eligibility:

• All pensioners below 72 years.

Quantum:

• 18 times average net pension credited during the last 6 months with a maximum of Rs 2.00 lakhs.

Repayment:

• Maximum 60 months

Interest:

• 1 year MCLR + 4.00% p.a.

Security:

• Personal guarantee of spouse eligible for a family pension will be obtained.

Other features

• Processing charges at 0.75% of loan amount + GST
• Documentation charges:
  loans below Rs. 2.00 lakhs: Nil
  loan above Rs. 2.00 lakhs: 0.10% + GST with minimum of Rs. 500.00 + GST

Visit any of the nearest branches to Avail Vijaya Bank Personal Loan or apply online.

Documents Required for Personal Loans to Pensioners:

• Application form
• Address proof
• Photo identity proof
• 1 passport sized photograph
• Age proof: Pan Card or Passport

Income proof:

Pension Payment Order or Bank Statement

Also Read: Top 7 Personal Loan Offers for Indian Pensioners

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