Indian Bank Pension Loan

Post retirement, government employees get a monthly cash flow in the form of pension. Though this amount is lesser than the salary that they used to earn, it is provided to take care of their monthly expenditure. Apart from this, it is quite likely that a sudden situation may compel a pensioner to organise a lump sum and he/she might have to resort to taking a loan. Indian Bank offers loans to pensioners to meet their financial needs arising out of situations like medical emergencies, marriage of children, educational expenses, family functions, etc.

Features and Benefits of Indian Bank Pension Loan

• This loan is provided to pensioners to meet their financial needs arising out of situations like medical emergencies, marriage of children, educational expenses, family functions, etc.
• The loan can be availed by ex-employees of Central and State Government, family Pensioners, re-employed pensioners.
• Ex-employees of Indian Bank who have their pension SB accounts at an Indian Bank Branch can avail the loan.
• This loan facility is not extended to retirees of CRS and EPF pensioners.
• The loan quantum for a regular pensioner is his 15 months’ pension. This can extend up to a maximum of Rs. 6 lakhs.
• If the borrower is a family pensioner, he can avail a bank loan of up to his 12 months’ pension. This can extend only up to a maximum of Rs. 2 lakhs.
• For a regular pensioner the maximum entry age limit is 75 years and exit age limit is 78 years. The entry and exit age limits for the family pensioners are 70 and 73 years, respectively.
• The spouse can act as a guarantor for a family pensioner. Any credible third party, legal heir or family member can also act as a guarantor.
• Every pensioner’s part of PPO should be substantiated with documents. He should also provide an agreement saying that he will not move the pension credited in his Indian Bank account to any other bank, during the tenure of the loan.
• The loan repayment tenure for a regular pensioner is a maximum of 60 months with respect to the exit age being 78 years. For a family pensioner it is 36 months and exit age limit is 73 years.
• The loan margin is nil.

Indian Bank Pension Loan Interest rates

Indian Bank offers loans to pensioners at affordable rates of interest. To attain further clarity on this, please contact the nearest Indian Bank branch.

Eligibility

• The loan can be availed by ex-employees of Central and State Government, family Pensioners, re-employed pensioners.
• Ex-employees of Indian Bank who have their pension SB accounts at an Indian Bank branch can avail the loan.
• This loan facility is not extended to retirees of CRS and EPF pensioners.

Other fees and charges

If the loan amount is up to 25,000 then there are no processing charges, if the loan amount is above Rs. 25,000 then processing fee of Rs. 255 is levied.

Indian Bank Pension Loan Frequently Asked Questions (FAQs)

1. What is the loan quantum provided for Indian Bank pension loan?

   The loan quantum for a regular pensioner is his 15 months’ pension. This can extend up to a maximum of Rs. 6 lakhs. If the borrower is a family pensioner, he can avail a loan of up to his 12 months’ pension. This can extend only up to a maximum of Rs. 2 lakhs.

2. I am an EPF pensioner. Can I avail Indian Bank Pension Loan?

   No, this loan facility is not extended to retirees of CRS and EPF pensioners. However, the loan can be availed by ex-employees of Central and State Government, family Pensioners, re-employed pensioners. Ex-employees of Indian Bank who have their pension SB accounts at an Indian Bank branch can also avail the loan.

3. What is the processing fee levied on Indian Bank Pension Loan?

   If the loan amount is up to 25,000 then there are no processing charges, if the loan amount is above Rs. 25,000 then processing fee of Rs. 255 is levied.

4. What is the loan margin provided for Indian Bank Pension Loan?

   The loan margin provided is NIL for Indian Bank Pension loan.

5. I am a regular pensioner. For what purposes can I avail a pension loan from Indian Bank?

   Indian Bank offers loans to pensioners to meet their financial needs arising out of situations like medical emergencies, marriage of children, educational expenses, family functions, etc. You can avail the loan to fund one of the aforementioned purposes.

6. Do I need a guarantor to avail this loan? If so, then who can be my guarantor?

   The spouse can act as a guarantor for a family pensioner. Any credible third party, legal heir or family member can also act as a guarantor.

7. Do I need any special document to avail this loan?

   Yes, every pensioner’s part of PPO should be substantiated with documents. He should also provide an agreement saying that he will not move the pension credited in his Indian Bank account to any other bank, during the tenure of the loan.