Personal Loan for Family Pensioners
If there’s one thing about life, it is that anything can happen at any time. As such, it becomes next to impossible to predict when a financial emergency may come about. That’s why we set aside savings, to meet these unexpected emergencies. But exactly how much do we need to save? We don’t know the severity of the situation till it arises and when it does, many find that their savings fall well short of the requirements. It’s such times when personal loans come to the rescue. They offer the needed influx of cash and they can be used for a wide variety of expenses. But personal loans are easily given out to salaried employees or self-employed professionals who are still working. What happens when the borrower is a retired pensioner? Personal loans tend to become quite difficult when there isn’t a source of income or employment.
To address these needs, many banks now offer pensioner loans. Some popular personal loans for pensioners and their features are mentioned below.
SBI Pensioner’s Loan
- Pensioners can avail a loan from the State Bank of India provided they meet the age requirements. The maximum age of the borrower cannot exceed 72 years. Pensioners can avail this loan if they are drawing their pension through an SBI pension account. The loan can be availed only at the branch in which the pensioner is maintaining the account.
- The maximum loan amount under this scheme is equal to 12 months’ worth of pension but has a ceiling limit of Rs 1,00,000. The loan comes with no margins. Repayment tenures can go up to 60 months but is dependent on the age of the borrower. If the borrower is aged below 70 years, they can repay the loan through 60 equated monthly instalments (EMI). If the borrower is aged between 70 and 72 years, then the borrower can only receive a maximum of 48 EMI’s.
The loan documentation is a hassle free process and has a low interest rate of 13.25%. The loan is also free from processing fees. There are no hidden fees or charges that can eat away at the loan amount. The loan also provides for prepayment with no additional charges. Any surplus funds can be used to prepay the loan and reduce the overall interest and liability.
- The loan does require security in the form of a guarantor. Guarantors can be a third party capable of repaying the loan amount, family members or the spouse who qualifies for the family pension.
Bank of India Star Pensioner Loan Scheme
- The Bank of India Star Pensioner loan is available to regular pensioners or family pensioners and retired employees that maintain a pension account with the Bank. The loan can be availed only at the branch the pension is being drawn from. The loan is also available to drawing regular monthly pension through the branch.
- The borrowers wishing to avail this should not exceed 75 years at the end of the loan tenure. Borrowers availing a loan where the PPO is held with the branch can avail a maximum loan amount of 15 times their monthly pension with a ceiling limit of Rs 5 Lakh for both pensioners and family pensioners.
- Borrowers whose pension is directly credited at the branch from the treasury can avail a maximum loan amount of Rs 3 Lakhs in case of pensioners and Rs 1.5 Lakhs in case of family pensioners. Borrowers exceeding the age of 75 years can only avail a maximum loan amount of Rs 1,00,000.
- Borrowers can also be provided with more than one loan under this scheme. They can avail a secured loan and an unsecured loan provided they meet the eligibility criteria.