Loan for Pensioners


  • A pensioner and require a loan to meet your imminent needs?
  • Read this post to know which are the lenders that offer pension loans in India

A person who is aged 60 years or above can apply for a pension loan. Now, what is a pension loan? When the person is retired and makes his living via his monthly pension, the bank or NBFC can help that individual meet some of his/her financial needs via a pension loan. The pensioners can borrow a loan for financial needs for medical emergencies, home construction, renovation, car purchase, etc. But who can provide a pension loan? Read the post and know about the lenders who offer the best loan for the pensioners in India.

SBI Pension Loan

State Bank of India (SBI) offers you a loan up to INR 14,00,000 at an interest rate of 10.30%-11.80% per annum with a repayment period of 84 months which is based on your age. The defence pensioners get retired at an early age when they reach 50 years that helps them borrow a pension loan high compared to any other pensioners with a longer repayment period and loan amount. See the table and know how SBI sets the pensioners’ repayment and loan amount according to their age.

Defence pensioners

AgeLoan QuantumTenure
Below 56 yearsINR 14,00,0007 years
56 to 72 yearsINR 14,00,0005 years
72 to 74 yearsINR 12,00,0004 years
74 to 76 yearsINR 7,50,0002 years

Government Pensioners working in Central or State Govt.

AgeLoan QuantumTenure
Below 72 yearsINR 14,00,0005 years
72 to 74 yearsINR 12,00,0004 years
74 to 76 yearsINR 7,50,0002 years

Family Pensioners including Defence Pensioners

How Much Can You Get?

SBI provides you the loan amount based on your monthly pension which the pensioner and family pensioner get. You can borrow 18 to 36 times your monthly pension amount which is quite a high loan amount to get at an interest rate like SBI provides. But, to get a loan, your pension must get disbursed to the SBI account else you can’t apply.

You need to pay a processing fee of 0.50%-1.00% of your borrowing amount that is a non-refundable amount.

PNB Pension Loan

You can borrow money from Punjab National Bank against your monthly pension for which you don’t need to provide any kind of collateral. Pensioners can borrow up to INR 10,00,000 at an interest rate of 11.40% per annum. You can either get the loan in a lump sum or via the overdraft facility. The age of the pensioner shouldn’t exceed 75 years else the concerned individual won’t get the loan amount. PNB doesn’t charge any kind of processing fee for the pension loan and offers a repayment plan of 24 to 60 months based on the pensioner age.

The documentation process may cost you INR 500 + GST during the loan processing. And the loan is disbursed within 48 hours of the approval. Individuals drawing pensions from any of the PNB branches are eligible for the loan.

Bank of India Star Pensioner Loan

Pensioners who withdraw funds from the Bank of India branch can apply for the loan. The loan can be disbursed as a demand loan, term loan or overdraft facility. A maximum of INR 5,00,000 can be borrowed from the bank at an interest rate of 9.35% per annum. And a processing fee that is 2% of your loan amount is charged by Bank of India to sanction your pension loan.

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Central Bank of India Pension Loan

If you are withdrawing your monthly pensions from the Central Bank of India then you can borrow 12 to 18 times your monthly pension. And the amount can be used for any purpose regardless of the purpose whether you want it for medical needs or any other financial requirements such as marriage, education, etc.

You can get up to INR 5,00,000 from the bank at an interest rate of 9.50% per annum with a repayment period of upto 60 months.

Canara Bank Pension Loan

Pensioners retired from Railways, Defence, Armed Forces, Defence Civilians can apply for the loan from Canara Bank. And at the attractive interest rate of 10.60%, you can borrow a loan of INR 10,00,000. Defence pensioners will get a longer repayment period compared to other pensioners.

Canara Bank doesn’t levy any processing fee on your pension loan for easy and affordable financing.

Why to get a Pension Loan?

The reason to have a pension loan is to meet the financial needs at the age where it could be hard for a person without the same. And, with the help of a pension loan, they can meet their needs. Pensioners, given their age, can be subject to illness more than their younger counterparts. In this case, the pension loan comes in handy and helps pensioners receive the much-needed funds for medical treatment.

Documents Required during the Pension Loan

  • Aadhar card
  • PAN card
  • Passport
  • Bank statement for last 6 months
  • Current EMIs schedule (if any)

Using these few documents pensioners can get the loan at an attractive rate of interest.

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