Accounts with Overdraft Facility for Pensioners


  • Check eligibility criteria for Overdraft Facility enabled Savings account for Pensioners.
  • This facility is available for Pensioners withdrawing pension from the bank or have Fixed Deposit with the bank.

Overdraft facility is a credit agreement with a financial institution which allows an account holder to use more money than they have in their account. Almost all banks offer overdraft facility to selected bank account types. The facility is widely used by people in financial emergencies such as sudden medical expenses or debt clearance. If your bank allows you to use this feature, it can really be helpful in times when there is a cash crunch or any urgency.  The money has to be paid back to the bank within a month.

Talking about pensioners, there are certain banks that offer overdraft facility for pensioners if they withdraw their pension from the bank or have fixed deposit with the bank. In this article, we have brought in the features of overdraft facility specially designed for pensioners at some of the best banks.

For what purposes is Overdraft facility?

As a pensioner, an individual has limited source of income. In case of an emergency such as hospitalization or medical expenses or debt settlement, a person has the option to avail overdraft facility. The money can be used for any legitimate purposes from the banks where the pensioner has his bank account. The facility can be availed against the pension account at the bank or Fixed Deposit only. It is thus a secured overdraft facility within the reach of only those pensioners (or their family) having either a pension account with the bank or a fixed deposit account. The type of account against which the facility can be availed varies from one bank to another.

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How can a pensioner avail Overdraft Facility?

An individual has to submit a collateral in the form of asset to avail overdraft facility. The banks accept overdraft facility only if you can afford to provide any of these assets – house, insurance, policies, bank fixed deposit, shares, and bonds, etc.

What is the interest rate applicable?

The interest rate and overdraft sanctioned by the bank varies on each of the collateral. There are some banks where the rate of interest is applicable on the withdrawn amount and some banks would charge on the reducing balance basis.

Features of Overdraft Facility for Pensioners at Top Banks

Below are some of the banks that have overdraft facility for pensioners either in the form of savings account of Fixed Deposit. You may look at the eligibility required, repayment period and maximum withdrawal amount.

S.No.BanksEligibilityRepayment PeriodMaximum Withdrawal Amount
1State Bank of India (SBI)Either a single or Joint account holder of SBI’s Term Deposit Receipt/Special Term Deposit ReceiptUp to 36 months₹5 crore
2HDFC BankResident Individuals

Hindu Undivided

Private and Public Limited Companies

Senior Citizens or Retired Personnel (above 60 years of age) who are Resident Indians are eligible for the Senior Citizen rate on the Indian rupee fixed deposit.
Up to the maturity of FDUp to 90% of FD
3Central Bank of IndiaPensioners / family pensioners drawing pension through our Bank Branches including Ex-staffUp to 60 months₹10 Lakh
4Indian BankTerm Deposit Holder of the bankUp to the maturity of FD90% of accrued value of deposit.
5Syndicate Bank Pensioners in receipt of regular monthly pension from Central / State
Governments/Public sector Undertakings/ Units, Defence
establishments and other government or quasi government
institutions whose pensions are being routed through accounts held
with our Bank.
Up to 72 months₹10 Lakh
6UCO BankFixed Deposit account holders at the bankUp to the maturity of FD90% of accrued value of deposit
7PNBPensioners who are drawing their pension from our branches provided the conduct of the account is satisfactory.Overdraft is to be regularized from the pension payable for the next monthUp to the extent of one month net pension
8Allahabad BankAll state Govt., central Govt., teachers’ and our bank employee Pensioners whose monthly pensions are credited in the accounts maintained by them with our branchesUp to 48 months
9Dena BankFixed Deposit account holders at the bankUp to the maturity of FD90% of accrued value of deposit
10Bank of BarodaSavings Account holder

Bank of Baroda staff pensioners
Up to a maximum of 2 months pension amount
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With the above list of banks and the overview of accounts providing overdraft facility for pensioners, we hope that either or any pensioner in your family would find it easier to avail the facility.

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