Pension Loan
How to Get a for Pension Loan
Retirement is a milestone that brings newfound freedom and opportunities. While it’s a time for relaxation and pursuing passions, unexpected expenses can also arise. Personal loans for pensioners are designed to provide financial support during retirement, offering flexibility and convenience.
Are you a pensioner seeking financial assistance to fulfil your dreams or tackle unexpected expenses? Personal loans can serve as a viable solution for your immediate financial needs. In this article, we’ll explore the intricacies of personal loans tailored for pensioners, empowering you to make informed financial decisions during retirement.
Pension Loan
Pensioners with existing house loans and younger earning family members as co-applicants may consider obtaining a top-up home loan from their current lenders. Top-up house loan interest rates are often the same as those of the underlying home loan, therefore they are more likely to be lower than pension loan rates. Thus, a top-up house loan can broaden a pensioner’s consumption options, particularly if it was obtained from a lender other than the pension-drawing bank.
If their house loan provider refuses to grant them top-up home loans or charges them a higher interest rate, they should consider transferring their existing home loan to a lender who would approve a top-up home loan alongside the loan transfer. Pensioners with current house loans can compare home loan rates provided by multiple banks and housing credit companies to transfer their existing home loan at cheaper rates. They can also take up top-up home loans as an extra source of credit to satisfy personal needs.
Things to Keep in Mind while Selecting the Best Banks for your Pension Loan Requirements
1. SBI Pension Loan
Retirement just got merrier with SBI Pension Loan. Fund your child’s marriage, buy your dream home, plan a trip or get medical aid with simple and hassle free loan and repayments.
| Scheme | Spread over 2-year MCLR | Effective Interest Rate |
|---|---|---|
| SBI Pension Loan | 2.55% | 11.60% |
| Jai Jawan Pension Loan | 2.55% | 11.60% |
| Pension Loan to Treasury/ PSU Pensioners* | 2.55% – 3.05% | 11.60% – 12.10% |
| Pre-Approved Pension Loans (PAPNL) | 2.55% | 11.60% |
2. Bank of Baroda Pension Loan
Interest rates for a pensioner loan are given below in the table:
| Product | Types of Pension Loan | Effective Interest Rate |
| Baroda Loan To Pensioners | Digital | 12.15% |
| Baroda Loan To Pensioners | Non-digital | 12.65% |
| Baroda Loan To Pensioners | For Retired Bank of Baroda/their Family pensioners | 10.00% |
3. HDFC Bank Pension Loan
| Max. Loan Amt. | Up to ₹40L |
| Rate of Interest | 10.85% – 24% |
| Tenure up to | Upto 6 Years |
| Processing Fee | ₹6,500 |
4. Axis Bank Pension Loan
| Max. Loan Amt. | Up to ₹40L |
| Rate of Interest | 11.25% – 22% |
| Tenure up to | 1-7 Years |
| Processing Fee | Upto 2% |