Personal loans are a bit expensive since they are unsecured loans, but they do offer great convenience and hassle-free processing. Major banks of the country woo pensioners with personal loans. Let’s check what a few banks have to offer for this category of senior citizens.
The country’s biggest bank SBI gives personal loans to pensioners below 76 years of age. However, pensioners who PPO (pension payment order) is maintained with SBI get it. “The pensioner has to furnish an irrevocable undertaking not to amend his mandate to the Treasury during the tenure of the loan. The Treasury to give consent in writing that it will not accept any request from the pensioner to transfer his pension payment to any other bank till a NOC is issued,” said SBI.
According to SBI, the EMI-net monthly pension ratio shall not exceed 33% for family pensioners and 50% for other pensioners.
SBI allows a maximum repayment period of 72 months. A 3% prepayment charge is levied on all loans.
Even family pensioners (authorised members of the family to receive pension after the death of the pensioner) are eligible for SBI personal loan.
The second biggest PSU bank in India, Punjab National Bank (PNB), also offers personal loans to those drawing pension through their branches.
The minimum personal loan that a pensioner can apply for is Rs 25,000. But the maximum loan sanctioned by PNB is Rs 10 lakh for those below 70 years or 18 times the net monthly pension (NMP), whichever is less. However, for defence personnel, the upper limit is 20 times the NMP.
The maximum amount is Rs 7.5 lakh if the applicant is between 70 and 75 years is Rs 7.50 lakh (or 18 times the NMP, 20 times for defence pensioners) whichever is lower. If the pensioner is above 75 years, the ceiling is Rs 5 lakh (or 12 months the NMP) whichever is lower.
The rate of interest PNB charges from pensioners for personal loans is around 11.75%.
Contrary to popular opinion, some bankss entertain applications for personal loan from pensioners. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
