SBI Personal Loan for Pensioners

Retired individuals might face financial requirements which compel them to avail a loan. To meet this purpose, SBI provides loans to pensioners. Central or State Government or Defence pensioners who are below 76 years old can avail this loan. They need to draw their pension from one of the SBI branches. The loan needs to be availed from one of any SBI branch. The loan can be used to meet your personal financial needs.

Features and Benefits of SBI Pensioner Loan

• The processing fee is nominal. Defence pensioners need not pay any processing fee.
• Fast loan processing.
• The loan is devoid of interest costs.
• If you add credit into your loan account which will reduce the loan burden and interest.
• For central government employees the minimum loan amount is Rs.25,000. The maximum is pension of 18 months with a different upper cap for different ages.
• For defence employees the minimum loan amount is Rs.25,000. The maximum is 36 months’ Pension with a ceiling of RS 14.00 lac for Pensioners below 56 years. It is also pension of 18 months with a different upper cap for different ages.
• The repayment period has been listed on the basis of age, in the table below –

For Family Pensioners (including Defence Pensioners):

For Central and State Government Pensioners:

For Defence Pensioners:

Eligibility Criteria for SBI Loan for Pensioners

For Central and State Government Pensioners:

• The maximum age should be 76 years

For Defence Pensioners the individual should have been an employee of-

• Armed forces, CRPF, CISF, BSF, ITBP, etc. , Rasht Riya Rifles, Assam Rifles, and Coast guards
• He cannot be over 76 years of age

Family pensioner

• Spouse of the primary pensioner can receive the pension after his death.
• His/her age cannot be over 76

SBI Loan for Pensioners Interest rates

• SBI Loan for Pensioners Interest rate is 3.80% above 2 year MCLR. This is currently 11.45% per annum.

Other fees and charges

• For Central and State Government Pensioners and Family Pensioners the processing fee is 0.50% of the loan amount. This is subject to addition of GST (subject to a minimum of 500 and additional applicable GST.
• There is no processing fee for Defence Pensioners
• If you prepay the loan before the end of the loan tenure, you have to pay 3% as prepayment fees.

FAQs on SBI Personal Loan for Pensioners

1. I am 77 years old. Can I apply for this loan scheme?

No, you cannot apply for this loan scheme. In order to be eligible for this loan scheme you need to be 76 years or younger.

2. How can I apply for this loan scheme?

You can visit the official website of State Bank of India to apply for this loan. You will have to fill the form and submit the necessary documents. The bank will then verify the documents and the application form submitted by you and if they are found to be correct, the loan amount will be disbursed to your bank account.

You can also visit the nearest branch of State Bank of India and apply for the loan. You will have to make sure you carry all the relevant documents along with you. A representative from the bank will help you with the process of applying for this loan.

3. Will I have to pledge any form of security?

No, you will not be required to pledge any form of security since this is a personal loan scheme.

4. Can I avail this personal loan if I have a guarantor?

Yes, you can avail this loan scheme if you have a guarantor who will ensure that the loan amount will be repaid on time to the bank.

5. Can I furnish a standing instruction where the EMI will be debited automatically from my account on the due date of each month?

Yes, you can furnish a standing instruction where you can authorise the bank to debit the payable amount from your bank account automatically on the due date of each month. This way you will not require any reminders to pay your EMI on time and you will be able to pay your EMIs in a timely manner as well.