Personal Loan for Pensioners

A financial emergency can strike anybody anytime regardless of age or occupation. In this kind of situation, working people get the loan easily, however retired people sometimes face difficulty in acquiring the same. Therefore, to make the obtaining a loan process easy, financial institutions have come up with a solution which is a Personal Loan for pension holders, also known as Pension Loan. This loan is just the same as another personal loan. A pension holder can receive this personal loan against the pension they withdraw monthly and can use it for any purpose such as settling debts, paying outstanding bills, medical emergencies, etc.

Let’s have a look at its important aspects including features and benefits, eligibility, interest rate, and so on to gain more knowledge about it.

Here are multiple features & benefits of a loan for pensioners.

• Competitive Interest Rate

Several financial institutions offer this loan at a low-interest rate, allowing you to plan and manage your monthly budget in an organised way.

• Personal Loan for Family Pensioners

In the event of your death, your spouse or the person who is authorised to receive your pension can also apply for this loan.

• Minimal Documentation

You will be saved from the lengthy and time-consuming paperwork since you are required to submit only your identity proof, residential proof, and income proof (details of your pension).

• No Need to Provide Security

Personal Loans are unsecured in nature. As a result, you are not required to provide any collateral in order to obtain it. You can simply get this loan against your pension.

• Instant Approval & Quick Disbursal

Your loan will be granted in a couple of hours, and once approved, the funds will be deposited into your bank account immediately.

• Multipurpose Loan

Financial institutions have not established any precise requirements for obtaining this loan. As a result, it is one of the quick and easy loans for pensioners that can be used for a variety of purposes, including vacations, debt repayment, and so on.

The interest rate for the personal loan varies across lenders. You can refer to the table below to know more about the same.

Disclaimer: Interest rates are subject to change as per the bank’s policies

Financial institutions offer loans for pensioners through online and offline mediums. However, before applying for it, you must be aware of the eligibility criteria to avoid rejection.

• You must be an Indian citizen

• Your age should not exceed 80 years at the end of the tenure

• You must have a valid pension income certificate

• The CIBIL score should be above 685

To obtain a Pension Loan, you are obligated to submit only specified documents that are listed below.

• Identity proof (Aadhaar card, Voter Id card, Driving licence)

• Address proof (Aadhaar card, Passport, Utility bills, Voter Id card)

• PAN card

• Income proof

You can apply for the loan either online or offline.

1. Online

If you choose the online mode, here are the steps:

• Visit the official website of the chosen lender

• Head to the application section

• Provide your details and upload the supporting documents

• Following that, your application will be verified

• Once the institution verifies the information provided, your request will be approved and the amount will be transferred into bank your account

2. Offline

Here's how you can apply for a pensioners' loan at the branch of the lender.

• Visit the financial institution’s branch during the working hours

• Fill in the application form with the necessary details

• Submit the required documents with the form to the concerned department

• The lender will review your application and documentation

• You may be asked for additional information or clarification

• Stay in touch with the lender to track the status of your application

• Once approved, you will need to sign the agreement

• Post this, the loan amount will be credited to your bank account

Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.