All of us plan our finances according to our lifestyle and requirements so that we can enjoy life post-retirement. But financial difficulties do not inform before coming. You might require urgent cash for medical treatment, home renovation, travelling, or any other unplanned expenditure during your retired life. This can take a significant toll on your financials. In case you end up using your entire savings in one go, you will be left vulnerable for the remaining years. This situation is avoidable with the help of a Personal Loan
Indeed, you can apply for a customised Personal Loan for pensioners to meet your financial requirements without affecting your lifestyle. Lenders, however, follow strict eligibility criteria, wherein applicants must have a stable source of income (pension) and should have a genuine requirement for the loan.
Personal loan for pensioners is offered for a range of requirements such as: -
• Medical Treatment
• Travel and holidaying
• Home renovation and upgradation
• Paying for wedding or education of children
• Paying off credit card bills
Eligibility criteria for Personal Loan for Pensioners
These loans are meant only for individuals who have attained the age of 60 years and are receiving pension on a regular basis. The specific eligibility criteria differ across lenders, but some general points must be fulfilled by the applicant to be eligible for personal loans such as SBI Personal Loan
• If the applicant was employed in the private sector, the applicant must be receiving a pension from a reputed private sector employee or an educational institute of repute.
• If the applicant was employed with the public sector, the applicant must be receiving a pension from the respective PSU, Insurance company, Bank, or defence establishment.
• The pension must be credited regularly to the account of the pensioners. Also, there should be sufficient balance in the bank account with no instances of cheque bounce.
• The pensioner must meet the age criterion of the respective financial institution along with other essential parameters. Ideally, most financial institutions offer maximum repayment tenor until the applicant attains the age of 75 years.
• If the applicant was employed with a bank, preference is given to the said candidate by the respective Bank.
• Depending on the profile of the applicant, lenders can ask for a guarantor or a co-applicant.
Benefits of a Personal Loan for Pensioners
Availing a Personal Loan to meet your financial requirement during your retired life could be a sensible financial decision. Here are some of the major benefits that you can avail:
• Meet your financial obligations in a timely manner without resorting to using up all your savings in one go.
• No need to make lump-sum payments. Repayments have to be made in EMIs as per the loan schedule. In the case of pensioners, repayments are calculated according to the pension being received.
• Avail extended repayment tenor of up to 60 months, allowing you flexibility over repayments.
• Minimal documentation and quick processing allow you to avail the credit facility within a few working days.
• High-value loans of up to Rs. 5 Lakh are available to help in effectively managing the financial exigencies.
• If you have been employed with a bank, you can receive the loan from the same Bank in quick time with no processing fees.
Best Personal Loan for Pensioners
1. SBI Personal Loan
SBI Personal Loan for pensioners is available for applicants up to the age of 74 years. While the applicants under the age of 72 years can avail repayment tenor of up to 48 months, applicants above the age of 74 years can avail a repayment tenor of up to 24 months. The maximum amount available as SBI Personal Loan is Rs. 14 Lakh for pensioners and Rs. 5 Lakh for a family pensioner. At present, the rate of interest against SBI Personal Loan is 13.05% onwards.
2. PNB Personal Loan
PNB offers a Personal Loan of up to Rs. 10 Lakh for pensioners with a maximum repayment tenor of 60 months. If the applicant is above the age of 75 years, the maximum repayment tenor is 24 months. The applicant needs to provide the spouse as a guarantor to the loan.
3. Bank of Baroda Personal Loan
Bank of Baroda personal loans are available for pensioners. Applicants who are under 70 years of age are eligible for a repayment tenor of 60 months while those above 75 years are eligible for 36 months repayment tenor. The maximum amount available is Rs. 8 Lakh.
Apart from these mentioned schemes, there are several other options available for you to avail a Personal Loan to meet your financial requirements. So, do not worry when you face a financial exigency, avail a personal loan for pensioners and enjoy your financial independence.