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.
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.
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.
A retired individual can apply for loan by simply filling the form. Generally banks don't charge a processing fee.
* Terms and conditions may vary from bank to bank.