Most people believe that after the age of 60, a loan is not available. But it’s not like that. Pensioners get loan facilities even after retirement in big government banks like Punjab National Bank (PNB) and State Bank of India (SBI).
State Bank of India provides loans to pensioners under the State Bank of India Pension Loan Scheme. In contrast, the name of this loan scheme of PNB is ‘Personal Loan Scheme for Pensioners’.
Even after 60, if you need funds for critical work, you do not need to wander here and there.
You can fulfil your need by taking a loan from these government banks. Know here the terms and conditions related to the loan.
loan amount limit
If you are thinking of taking a loan from PNB, then let us tell you that the loan amount is decided according to the pension.
If your age is up to 70 years, then under this scheme minimum of 25 thousand and a maximum of 10 lakh rupees or 18 times the amount of pension can be taken as a loan.
On the other hand, defence pensioners can take up to 20 times the amount of their retirement as a personal loan.
If the pensioner’s age is between 70 and 75 years, he can get up to Rs 7.5 lakh or 18 times more money than the pension amount in the form of a loan.
On the other hand, defence pensioners can get Rs 7.5 lakh or 20 times more than the pension as a loan.
On the other hand, if your age is more than 75 years, then you can get up to Rs 5 lakh from the bank or an amount equal to 12 months’ pension as a loan.
On the other hand, if you want to take a loan from the State Bank of India, i.e. SBI, then the limit of the loan amount will be decided based on your pension.
To apply for a pension loan from SBI, the pensioner’s age should be less than 76 years. This loan available to pensioners is similar to a personal loan.
To take this, the pension payment order of the borrower must be with the State Bank of India.
Rules related to loans in PNB
According to the information available on the site of PNB Bank, after taking the loan, the pensioners have to repay the loan in a maximum of 60 instalments, i.e. within five years.
On the other hand, people above 75 years of age must repay the loan in a maximum of 24 instalments, i.e. in two years. Rs 500 + GST is charged as documentation charges.
Apart from this, while taking the loan amount on this loan scheme of PNB, the spouse has to give a guarantee.
For example, if a woman is taking a loan, then her husband, and if a man is taking a loan, then his wife has to give a guarantee as security.
Apart from this, if your children earn, they or a third-party warranty can also be provided.
Rules related to loans in SBI
The loan repayment period in SBI is 72 months, which must be repaid till the age of 78 years.
Apart from this, the pensioner will have to give an undertaking that during the loan period, he will not amend his mandate given to the Treasury.
The Treasury will have to give in writing that unless a No Objection Certificate is issued from the bank,
the Treasury will not accept the request of the pensioner to transfer the pension payment to any other bank.
Meagre processing fee
If you are thinking of taking a pension loan from SBI, then its speciality is that the processing fee is meagre in this.
The process of getting the loan is rapid, and there is no need to submit too many documents.
The interest rates on pension loans are also usually lower than personal loan interest rates.
There are no hidden charges in this. Pensioners get an EMI option to repay the loan. You can apply for a pension loan in any branch of SBI.
