Best Personal Loans Provider for Pensioners
A Personal Loan is essentially a multi-purpose credit that one can avail to meet one or more financial obligations. In a vast majority of cases, Personal Loans are unsecured, implying that as a borrower, you need not offer any collateral to the lender, in exchange of the loan amount. Not only does this aspect help you revel in the pleasure of being the sole owner of your assets, but also fastens the loan application and disbursal process.
However, you must understand that the absence of this collateral increases the risk proposition for the lender. In this situation, to be assured of your willingness and ability to repay the loan, most lenders rely on your credit score, the source of employment as well as current income.
Of course, when you get retired and are living off of pension, you virtually have no source of employment and the influx of money also becomes limited. So, what should you do, if you still need a loan to say sponsor your child’s higher education, or pay for some urgent medical expenses, or even remodel your home to suit your changing needs? Well, you can now opt for some of the most reliable Personal Loans for Pensioners.
Don’t know where to look for these? Well, we have got your back. Here is a list of the 5 best Personal Loan providers for pensioners in India!
1. SBI Pension Loan
When it comes to offering Personal Loans to retired employees of the government or that of the defence department, SBI Pension Loans do the job just right. Here are some aspects that you need to know in the context of this much sought after loan:
Loan Amount: Ranges from Rs. 25,000 to Rs. 15 Lakhs, primarily depending on your pension as well as your age.
Interest Rate: 12% per annum
Repayment Tenure: Ranges from 24 to 84 months, depending on the loan amount
Processing Fees: 0.5% of the loan amount plus taxes – whichever is lower. The bank does not levy any processing charges for defense pensioners.
In order to avail this loan, the applicant who was a state or central government employee before retirement, must be less than 76 years of age, and must be drawing a pension from an SBI branch, which is being disbursed by the concerned government treasury.
For ex-defence personnel to avail this loan, they should be drawing a pension from the Army, Navy, or the Air Force. Pensioners of Rashtriya Rifles, Assam Rifles, and Paramilitary are also eligible for this loan, along with those who worked as coast guards. Again, the pension payment order of the personnel should come from SBI, for them to qualify for this loan.
In case of the spouse or children of an eligible pensioner wanting the loan, they must be authorised to receive the pension, and should not be more than 76 years of age, while applying for the loan.
2. Central Bank of India Personal Loan for Pensioners
As is the case with SBI Pension Loans, even Central Bank of Indian Personal Loans is only offered to those pensioners, who get their pension through the bank. Even in this case, the authorised family member of the pensioners is also deemed eligible for the loan.
Some of the aspects of Central Bank of India’s Personal Loan, that you must be aware of, are –
Loan Amount: A maximum of Rs. 5 Lakhs for pensioners below the age of 75, and that of Rs. 2 Lakhs for pensioners above the age of 75.
Interest Rate: 10.60%
Repayment Tenure: Up to 4 years
3. Punjab National Bank Personal Loan Scheme for the Pensioners
To qualify for this loan, it is essential that you are drawing your income from one of the numerous branches of PNB. Here are some aspects about this highly sought after loan –
Loan Amount: A minimum of Rs. 25,000 and a maximum of up to Rs. 10 Lakh for pensioners and defence personnel below the age of 70 years. The maximum loan amount for eligible pensioners in the age range of 70 to 75 years is Rs. 7.5 Lakhs, while that for the pensioners above the age of 75 is up to Rs. 5 Lakhs. The maximum loan amount is completely dependent on the pension being drawn by the applicant.
Interest Rate: 10.50% to 11%
Repayment Tenure: Up to 60 months
4. Bank of India Star Pensioner Loan Scheme
This loan is available for pensioners and their authorised family members, who are drawing their pension from one of the Bank of India branches across India.
Loan Amount: For pensioners can get up to Rs. 5 Lakhs as loan amount.
Interest Rate: 11.20%
Repayment Tenure: Up to 60 months
5. Allahabad Bank Personal Loan for Pensioners
In a bid to qualify for this loan, the pension of the applicant must be credited through one of the Allahabad Bank branches. Besides, the loan is only offered to applicants below the age of 73 years. Then again, the age of the applicant at the time of the maturity of the loan must be 75 years or less. Some of the other salient features of this loan are :
Loan Amount: The minimum loan amount is Rs. 25,000, while the maximum can be up to Rs. 6 Lakhs
Interest Rate: 8.65% to 10.65%
Repayment Tenure: Up to 4 Years
We hope that you are now aware of some of the quintessential aspects which make Personal Loans for pensioners not only easily accessible, but truly worth your while. Similarly, if need be, you can also look for Personal Loans for mothers, as well as Personal Loans for unemployed individuals.
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