SBI Pension Loan: A Collateral Free Loan for Senior Citizens up to 76 Years

SBI Pension Loan: A Collateral Free Loan for Senior Citizens up to 76 Years

Retirement is the new innings to embrace life. You indeed can enjoy life twice as much as yesteryears. After all, end of the working hours, leaves aside ample time for leading the life in your own way. With the customised bank products for senior citizens, the journey can become even merrier. Be it the child’s marriage, purchase of a family home, the much awaited foreign trip or a hefty medical bill, you can mange every financial commitment with peace and dignity, accessing customised loan from SBI. Yes, the largest lender in the country has a bespoke product called as SBI Pension Loan for senior citizens. So, let’s review & understand all the aspects related to borrowing in the old age.

Benefits of Loan

Like all other SBI products, you enjoy competitive rate of interest, impeccable customer support and convenient product features with SBI Pension Loan.

Briefly the benefits can be listed as:

  • Customised loan terms
  • Low Processing Fees
  • No hidden costs
  • Seamless processing
  • Easy EMIs facility
  • Minimal documentation
  • Universal application process across all branches, pan India.

The SBI Pensoion Loan is basically offered to 3 categories of pensioners: ex employees of Central or State Government, ex Defence Personals and Family Pensioners. The loan terms and eligibility criteria for each category are shared below.  

1. For Central and State Government Pensioners

Loan Quantum:

Age  at the time of sanction Max Amount Tenure

Below 72 Years

14 Lakhs

60 Months

72 – 74 Years

12 Lakhs

48 Months

74 – 76 Years

7.50 Lakhs

24 Months

Eligibility:

  • The applicant must below 76 years of age.
  • The applicant must be SBI Pension Account Customer. The pension payment order must be maintained with SBI.
  • An irrevocable undertaking needs to be signed by the pensioner stating that mandate to the Treasury will not be changed during the tenure of the loan.
  • The Treasury must also share a consent in writing that a request from the pensioner to transfer pension payment to any other bank will not be accepted during the loan tenure, un till an NOC is issued
  • A guarantee from spouse (family pension) or third party will also be required.

2. For Defence Pensioners:

Loan Quantum

Age  at the time of sanction Max Amount Tenure

Below 56 Years

14 Lakhs

84 Months

56 – 72 Years

14 Lakhs

60 Months

72 – 74 Years

12 Lakhs

48 Months

74 – 76 Years

7.50 Lakhs

24 Months

Eligibility:

  • All Defence personals including pensioners from Armed Forces- Army, Navy and Air Force, Paramilitary Forces (CRPF, CISF, BSF, ITBP, etc.), Coast Guards, Rashtriya Rifles and Assam Rifles can apply.
  • The Pension payment order should be maintained with SBI.
  • No minimum age bar under this scheme but the maximum age should be less than 76 years when applying.

 

Also Read: 5 Top Banks That Offer Personal Loan to Pensioners

3. For Family Pensioners (including Defence Pensioners):

Loan Quantum:

Age at the time of sanction Max Amount Tenure

Below 72 Years

5 Lakhs

60 Months

72 – 74 Years

4 Lakhs

48 Months

74 – 76 Years

2 Lakhs

24 Months

Eligibility:

  • Family pensioners are all members in the family eligible to receive pension after the death.
  • The age of applicant should not be more than 76 years.

Other terms & conditions across the Pension Loans are discussed below:

  1. The effective SBI Pension Loan interest rates will range from 10.55% to 11.05% p.a.
  2. EMI/ NMP (Equated Monthly Instalment/Net Monthly Pension) ratio should not be more than 33% for Family Pensioners and 50% for other type of Pensioners respectively.
  3. Processing fee for family pensioners will be 0.50% of the loan amount +GST, subject to Minimum of Rs 500 and Maximum of Rs 2500 excluding taxes. As for all other type of Pensioners, processing fee will be 1% of the loan amount, subject to a minimum of Rs 1000 and Maximum of Rs 10000 +GST.
  4. The loan prepayment charge will be 3% on the amount prepaid.
  5. No prepayment/ foreclosure charges will apply a new loan account under the same scheme is used for the payment.
  6. A Standing Instruction will facilitate EMIs.

Before you consider applying for SBI Pension Loan, it is important to know answers to the frequently asked questions.

FAQs

✅ Do I need collateral for SBI Pension Loan?

No. SBI Personal Loan is an unsecured loan and works like a Personal Loan. The pensioner should maintain adequate EMI/NMP ratio and observe pension statement order with the SBI to qualify for loan. No collateral is required.

✅ Is it necessary to have an SBI account for Pension Loan?

Yes. It is mandatory to draw pension through SBI if you want to avail of a Pension Loan.

✅ What is the maximum age to apply for SBI Pension Loan?

The maximum age to apply for SBI Pension Loan is 76 years.

✅ Being a family pensioner, am I eligible to apply for SBI Pension Loan?

Yes, a family pensioner up to 76 years of age, drawing pension at State Bank of India can apply for SBI Pension Loan.

✅ What is the tenure for SBI Pension Loan?

The tenure of the SBI Pension Loan varies as per the age of the applicant. The tenure will range from 2 years to 7 years.

✅ What is maximum loan amount sanctioned for SBI Pension Loan?

One can apply for the maximum of 14 Lakhs under SBI Pension Loan Scheme.

✅ My pension is received at SBI Bank account. Do I need a guarantor for Loan?

Yes. You will require the spouse’s or a third party guarantee to apply for a Pension Loan.

 

Also Read: 5 Best Home Loans for Pensioners

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