Having retired, you're living a comfortable and secure life with support from your monthly pension amount. But what happens if an emergency suddenly strikes you down, say a medical emergency or roof damage overnight?
Unexpected situations in life arrive without prior notice and cause a massive dent in your financial position. In these scenarios, most people often seek a loan. While working people find it easy to secure loan amounts, retired people sometimes face difficulty.
This is where personal loan against pension, also known as pension loan, comes into the picture. But what exactly is a pension loan, and how can you acquire a loan for pensioners online? Keep on reading to find out.
Realising the needs of elderly people in case of financial emergencies, every banking or non-banking finance company has launched a personal loan for pensioners. A pension holder can receive this loan against their pension and use it for various purposes.
This personal loan for senior citizens carries lower interest rates, zero processing fees and prepayment charges.
Let's see some of the features and benefits of a pension loan:
Banks and non-banking finance companies (NBFCs) offer pensioners online and offline loans. However, before applying, it's important to learn about the eligibility requirements. Some of the general criteria to meet are as follows:
In case of the demise of the pensioner, the family pensioner, i.e., the person authorised to receive the pension, can also apply for the pension loan. Even so, their age must be at most 76 years.
As mentioned, many financial institutions provide pension loans in India. Below are the top pension loans against their interest rate and loan amount.
Disclaimer: Interest rates are subject to change according to the policy of the bank.
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Yes, pensioners can seek loans from various banking and other financial institution, considering they meet their specific eligibility requirements. Note that to be eligible for a loan, the pensioner cannot be more than 76 years old.
Most banks and non-banking finance companies have specific interest rates for pension loans. For instance, the SBI pension loan interest rate starts from 11.5% p.a. onwards.