Federal Bank provides a specific loan that is aimed senior citizens in order to provide for an additional source of income for them. This loan features low interest rates and fast approval times.
The loan can be utilised for any personal needs, but can’t be utilised for any business or speculative purposes.
The eligibility criteria to be met in order for the institution to be able to sanction the loan include the following entities -
The financing modes allowed under the Senior Citizen Loan is a term loan.
Based on the credit-worthiness of the applicant, Federal Bank can provide loans that are variable, based on the value of the security provided.
The total monthly payout could be anywhere from INR 2000 to INR 25000.
The repayment duration can be anywhere from 10 years to 15 years as the maximum time.
Interest rates for a Senior Citizens Loan will be linked to the Base Rate and could change based on Federal Bank’s discretion. The interest will be reset every five years. These applicable conditions are as per November 2015. The margin on security will be 10% to 25%.
The standard list of required documents for applying for this loan are mentioned as follows –
The Pensioner Loan from Federal Bank is a secured loan that requires a valid owned property as security to furnish financing for any personal needs but speculative/business purposes.
The loan period can be of 120 months to 180 months and the loan processing time is very less when compared to other business or personal loans. The loan process involves minimal documentation.
Through Federal Bank’s website the forms can be downloaded, filled and submitted along with relevant documents at a local branch. Additionally, one could call or mail Federal Bank requesting an executive assistance for application process.
One can also apply for Federal Bank Loan for Senior Citizens (Aashray) through BankBazaar, wherein eligibility charts, EMI calculators and infographics can guide one through the application process.