With changing lifestyles, for some; life really begins at 40; sometimes even later. Loans from being disbursed only to those with regular incomes have now been extended to those who draw pensions. Banks are now able to cater to retires who do not wish to borrow from others and can manage some credit of their own.
Most of the banks provide personal loans to senior citizens who draw pension from their bank. A low interest rate is an added advantage for pensioners. Here we have put together some of the best personal loans for pensioners.
SBI Personal Loan
Central and state government employees drawing pension through State Bank of India who are below 77 years of age can get a personal loan at attractive interest rates. The pensioners can get up to INR 14 Lakhs as the loan amount. Defence personnel, state and central government pensioners and family pensioners are eligible to get this personal loan. The amount of the loan differs according to the category they belong. No margin is required to avail the loan. The bank charges 3% of the loan amount for prepayment.
The interest rate starts from 11.60%.
All the pensioners drawing pension from UCO bank can get personal loan up to 10 times of the monthly pension amount. For pensioners who are 70 years old and below can get up to INR 5 Lakhs and maximum of INR 4 Lakhs for individuals falling into the category of 70 to 72 years of age.
There are no processing charges for UCO bank pensioners personal loan and the maximum repayment period is 36 months. The bank does not charge any penalty for prepaying the loan.
The rate of interest is MCLR of 1 year + 4. 15%.
Central Bank of India
Known as ‘Cent Loan to Pensioners’, Central Bank of India offers competitive interest rates on personal loan for pensioners drawing through their bank. Pensioners who are above 75 years of age can get up to 12 months of their pension or INR 2 Lakhs and who are 75 years and below can get up to 18 months of their pension or up to INR 5 Lakhs. There are no processing fees charged on Central Bank of India pensioner personal loan.
The rate of interest starts from 11.70% per annum.
Punjab National Bank (PNB)
Pensioners can get minimum of INR 25,000 and maximum of 5 Lakhs or 18 times of the monthly pension. There are no processing fees charged and no margin required for getting this pensioner personal loan. The customers can repay the loan with maximum of 60 EMIs. However, the repayment period varies for pensioners who are above 75 of years of age.
The rate of interest starts from TL/DL: BR+ 2.50%.
Bank of India
The pensioners can get up to 15 times of monthly pension as the personal loan amount from Bank of India under BOI Star Pensioner Loan Scheme. There are no processing fees for senior citizens who are 60 years old and above, and others will have to pay 2% of the loan amount. The repayment period is up to 60 months.
The interest rate is 1-year MCLR + 2.50%.
Additional Reading: How To Apply for Loan Against Pension