Loan for Pensioners
Loans for senior citizens (who have crossed the age of 60) is now a days available with many banks. The situation today si much different from a few years back because banks did not favor giving loans to retired persons on the context of their inability in showing regular proof of income. Today however many retired persons are living a life of economic independence. Consequently banks are coming forward offering them unique loan schemes.
Generally pensioner loans are of two types. Pensioners loan and Mortgage loan for senior citizen. Through Pensioners loan, a senior citizen can take a loan against his Pension, fixed deposits, National Savings Certificates, Kisan Vikas Patras, Life Insurance Polices and RBI Relief Bonds etc where as mortgage loan demands collateral in the form of an asset such as a home or land. The maximum age limit of a pensioner to apply for a loan is 70.
The main advantage of this loan is its low interest rate. The maximum amount of loan avail may vary from bank to bank and depends upon individuals repayment capacity. This loan are disbursed through Savings Bank A/c other than the account in which the person’s pension is credited every month. Loan prepayment charges and processing fees are free. These loans can be prepaid any time without any penalty.
Documents Needed for Pensioners Loan
- Proof of Identity i.e.; Passport Copy or Voters ID Card or Driving License etc.
- Address Proof i.e.; Ration card, Telephone or Electricity Bill or Passport Copy etc.
- Last 6 months Bank Statement or Bank Passbook.
- Proof of Retirement and the organization last worked for, including the Pension Slip.
Please click on the link below to know about the banks providing loans to Pensioners.
Banks providing loans to Pensioners