alexa Missed Call Number

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
Home Articles Personal Loans For Pensioners

Personal Loans For Pensioners Research Team | Updated On Thursday, February 21,2019, 09:24 AM

5.0 / 5 based on 2 User Reviews

Personal Loans For Pensioners



There are times in life, when you badly need a personal loan. If you are well-employed and drawing a high salary, you can easily get a personal loan. Now, think about the pensioner. He too needs money in a financial emergency.  He would love to avail a personal loan to meet this emergency. The big question? Will banks give personal loans to pensioners?

Want to know more on personal loan and retirement planning? We at will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.

You May Also Watch: 

Personal Loans For Pensioners

When it comes to a personal loan, banks/NBFCs are very strict with the eligibility criteria.  Many banks do not prefer lending to citizens, who are over 60 years of age. But, pensioners and senior citizens too need money in a financial emergency. So, banks and NBFCs offer specialized personal loans for pensioners in India.

1. Pensioners get personal loans

Banks offer personal loans to retired Central and State Government employees. Defence pensioners can also avail the personal loan. This money can be used to meet a family obligation or a financial emergency.

Banks may charge a nominal processing fee of around 0.5% of the loan amount. Defence pensioners are exempted from paying the processing fees.

Retired Central/State Government employees can easily get a personal loan from the bank, where they draw the pension. You (pensioner), can easily repay the personal loan, over a tenure ranging from 2 to 5 years.

SEE ALSO: Financial Plans For Retirement Benefits

2. Eligibility criteria of personal loan for pensioners

  • Many banks specify that your age must not exceed 75-76 years.
  • If you draw your pension from the bank, you can easily avail the personal loan. Many banks demand that there should be no returned cheques, because of insufficient funds.
  • The minimum loan amount is around Rs 25,000, while the maximum amount can be 18 times the monthly pension, subject to a ceiling depending on the bank. Defence pensioners may enjoy a maximum amount, which can be 20 times the monthly pension.
  • Your spouse/children can be the guarantor of this loan. Some banks may accept a third-party guarantee.

See Also: National Pension System

What about collateral on personal loan for pensioners? The personal loan for pensioners is secured against the pension, which is a permanent source of income and banks can easily recover the loan dues. Your (pensioners) spouse is also eligible for the pension, and is called a family pensioner. Banks can easily recover the loan dues from the family pensioner.

SEE ALSO: 5 Financial Planning Tips For Housewives To Secure Their Future

3. What about the interest rate on pensioners personal loan?

Some banks charge an interest of MCLR + (2 - 2.6%). Banks could charge a pensioner around 11-13% a year as interest on pensioners personal loan. There is a GST of 18% on banking services and products. Be Wise, Get Rich.

See Also: Five Personal Mistakes To Avoid


Did you find this article useful? You can Rate us
5.0 / 5 based on 2 User Reviews
Article Author Research Team

The research team at comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
Get It now!