Just because you are retired and drawing a pension, it doesn’t mean that your expenses come to a pause. There are plenty of financial commitments for pensioners like funding a child’s marriage, unexpected medical expenses, and finally going on the overseas vacation, that they have always dreamt of. 

This is where pension loans come into the picture. A pension loan is a personal loan offered exclusively for pensioners. Taking a pension loan is quite easy. You can do it online or visit the branch where you hold the pension account to apply for the loan. Here are the steps to follow to take a loan against your pension.

Additional Reading: How To Apply For Loan Against Pension


Generally, most banks offer pension loans to pensioners, only when they withdraw the pension from their bank. You can not receive a loan to a pension if you try to apply with some other bank. Here are the steps to follow: 

  • Visit the official website of the bank you hold the pension account. 

  • Navigate to the “Pension Loan” section and click on “Apply Online.” 

  • Fill the application form by providing the required details: Pension account number, applicant name, address, mobile number, email address, etc. 

  • Enter the required loan amount, preferred tenure and submit the application. You may have to provide additional documentation if required. 

  • The bank will evaluate your application and verify the details and sanction the loan amount. 

  • Once the loan is sanctioned, the loan amount is credited in your bank account directly. 


If you’re not comfortable applying online, you can visit the branch where you’re withdrawing the pension to apply. The loan officer will walk you through the various steps. Once you submit the filled-in application form and other required documentation, your loan is processed.

Additional Reading: How To Get A Loan Against Your Pension