Financial emergencies in life have no boundaries. They can occur at any time and at any age and it is our responsibility to stay prepared for contingencies and address them effectively. It is a rule of thumb to push 20% of your earnings to your savings every month. Unfortunately, not everybody can do this being bound to address many regular expenses in life. When you are right with high earning capacity, there are meant banks to help you with the personal loans to help you resolve the financial obligation effectively. What about the emergencies you encounter at your old age? I mean at pension age. Many are unaware of the fact that there are personal loans available for pensioners too. Here is what you should know about pensioner personal loans.
You will stand eligible for availing these pension personal loans if you are state and central government employee drawing pension. You will also be eligible to get these loans if you are drawing a pension on behalf of the deceased pensioner.
Loan repayment tenure
This is one of the biggest things that many are worried about when you are availing the cash loans as a pensioner. You can comfortably repay the loan through monthly EMI throughout the period of the loan tenure. The total repayment of the tenure ranges between 24 to 60 months depending on the quantum of the loan and age of the pensioner. These regulations change as per the discretion of the bank. You have to compare the terms with the bank before taking the final call.
Personal loans are generally unsecured in nature but, when it comes to cash loans for pensioners, banks ask you for additional security. The requirement of collateral depends on the age of the borrower as well as an amount of loan you request from the lender. There are good chances of the loan approval if you can get a third party guarantee from your spouse or any family member. The banks ask for the security for the personal loan to stay assured about your repayment capacity. In case, you become inefficient to repay the loan, the guarantor will serve the loan on the behalf of the borrower.
Interest Rate on Loan
Like any other types of loans offered by the banks, even the personal loans offered for the pensioners do carry some interest rates. Interest loans are offered by the bank depends on the base rate of the bank. Personal loans offered by the banks known to have high-interest rate but, the interest rates on personal loans offered for the pension holders are comparatively low.
Top banks offering personal loans pensioners
- State Bank of India Loan for Pensioners
- Central Bank of India Personal Loan
- PNB Personal Loan Scheme for Pensioners
- Bank of Baroda Loan to Pensioners
- BOI Star Pensioner Loan Scheme