Outlook Money
Personal loans are useful in financial emergencies due to their fast approval process. However, for pensioners, there is often greater scrutiny regarding health and age, along with the need to show proof of income.
There are restrictions on the maximum loan offered to the pensioners as they have no other income source other than the monthly pensions. However, it may be waived based on the annual income they have from one or more sources like property assets.
SBI is one of the major banks that offers a pension loan or a personal loan to senior citizens who have retired from their active work. This helps to meet financial needs during an emergency.
The maximum loan amount offered to pensioners is Rs 14 lakh, and the minimum is Rs 25,000, depending on the applicant's pension and age. However, the loan must be repaid according to the instructions.
The loan is available till the age of 76, only for retired central and state government employees.
The loans offered here are available as term loans or overdrafts with no processing fees. Loans are paid ranging from a maximum amount of Rs 5 lakh for pensioners aged 75 and below, and for those over 75, Rs 2 lakh is the limit.
Compiled by Syed Muskan