If you are a retired individual who wishes to purchase and own your own car, there are banks and financial institutions that offer loans that have been specifically designed for pensioners. It is relatively easy to secure these loans and to repay them. The eligibility criteria and terms and conditions associated with each lender are different, thereby making it important for you to carefully read the fine print before drafting your application. Here is an example of a car loan scheme offered to pensioners by a financial institution:
The purpose of the United Car Loan Scheme for Pensioners is to provide financial assistance to retired individuals who wish to purchase cars that are not older than four years.
Here are the eligibility requirements for those who wish to avail the United Car Loan Scheme for Pensioners:
Here are the important features of the United Car Loan Scheme for Pensioners:
| Maximum Loan Amount | Rs.10 lakh |
| Margin | 15% of the value of the on-road price of the vehicle (in case of new cars), and 25% of the value of the vehicle (in case of used cars) |
| Processing Charges | 0.59% of the amount borrowed subject to at least Rs.600 and no more than Rs.11,800 |
| Interest Rate | 9.15% p.a. for repayment tenures extending up to 72 months, and 9.90% p.a. for repayment tenures extending up to 48 months |
| Repayment Tenure | Up to 72 months for new cars and 48 months for used cars |
| Prepayment Charges | Nil |
| Penal Interest | 1% p.a. on the instalment amount |
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