Family pensioners who are in need of funds can borrow Personal loans from leading and reputed lenders in India. There are a number of banks such as State Bank of India, IDBI Bank, and Bank of India that offer personal loans to family pensioners at attractive interest rates with flexible repayment terms.
| Bank | Interest Rate | Loan Amount | Loan Tenure |
| State Bank of India | 11.90% p.a. to 12.40% p.a. | Rs.25,000 to Rs.5 lakh* | Up to 60 months* |
| IDBI Bank | 10.1% p.a. onwards | Rs.25,000 to Rs.5 lakh | 12 months to 60 months |
| Bank of India | 11.15% p.a. | Up to Rs.5 lakh | As per the lender’s terms and conditions |
*Note: The maximum loan amount and loan tenure will vary based on the pensioner’s age.
Family pensioners who are not over the age of 76 years can borrow a personal loan from State Bank of India, provided that they draw their pension through one of the SBI branches. The particulars of this loan are given below.
*Note: For the EMI calculation, it is assumed that a loan amount of Rs.5 lakh has been borrowed for a loan tenure of 3 years at an interest of 12% p.a., with a processing fee of 0.5%.
IDBI Bank offers a personal loan that can be borrowed by salaried employees, self-employed individuals, and pensioners. The lender charges a very reasonable rate of interest that starts at just 10.1% p.a. The highlights of this loan along with a few other particulars are given below.
*Note: For the EMI calculation, it is assumed that a loan amount of Rs.5 lakh has been borrowed for a term of 4 years at an interest rate of 14% p.a. It is also assumed that no processing fee was charged, in this case.
Bank of India offers personal loans to regular pensioners and family pensioners under the BOI Star Pensioner Loan Scheme, provided that their monthly pension is routed through a branch of Bank of India. The details of the loan scheme are given below.
*Note: For the EMI calculation, it is assumed that a loan of Rs.5 lakh has been borrowed for a loan tenure of 2 years at an interest rate of 11.15% p.a. It is also assumed that no processing fee is charged for this loan.
A number of banks give prospective borrowers the option to apply for personal loans online, either through their official website or through a third-party financial services website. If this option is available, you can apply for a loan online and submit the required document online, as well.
You can also choose to visit the branch of a lender to apply for a personal loan. In this case, you will need to carry the required documents along with you to submit with your application form.
Most lenders will not require you to submit any security. You may, however, need to have a guarantor.
If you have a good credit score or have borrowed loans in the past for which repayments were made as per schedule, you can negotiate for a lower rate of interest.
If you make prepayments, your outstanding loan balance will reduce, which will, in turn, reduce the repayment burden.
Yes, most lenders charge a penalty if you do not repay your EMIs within the specified due dates. Thus, it is advisable to not default on your EMI payments.
No, most lenders do not require personal loan applicants to provide a reason for applying for the loan.
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