Banks are taking care of economical independence of retired individuals . This is done by offering the unique pension loan- A term loan to meet your personal expenses. The loan is available to pensioners till the age of 70.
Maximum Amount of Pension Loans:
The Maximum amount of loan sanctioned is generally 7-10 times the amount of last pension received. The amount can vary from individual to individual depending upon his repayment capacity. Repayment is normally done through Equated Monthly Installments or EMI. The repayment period can vary from 1-3 years.
Interest Charged by Banks on Pension Loans:
Banks generally charge according to the prime lending rate prevalent at the time of taking the loan. The Interest rate can either be fixed or floating. Sometimes a discounted interest rate is also provided by banks.
Process of Pension Loans Approval:
A retired individual can apply for loan by simply filling the form. Generally banks don't charge a processing fee.
Documents Required by Banks for Pension Loans:
List of Some of Banks Offering Pension Loans:
- Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
- Address Proof (Ration card Tel/elect. Bill/ / Passport copy)
- Bank Statements(latest 6 months bank statement /passbook)
- Proof of retirement and the organisation last worked for, including the pension slip.
Terms and conditions may vary from bank to bank.