Can pensioners also get loans? SBI runs one such scheme, know the details here

SBI runs a special loan scheme for pensioners. This scheme is- State Bank of India Pension Loan Scheme. Under this scheme, pension holders can take loan from the bank to fulfill their financial needs

The loan repayment period under Pension Loan Scheme is 72 months, which will have to be repaid till the age of 78 years. Photo: Unsplash/Representational

Any bank gives loan to its customers only after examining their age, income and credibility. This is the reason why many old people believe that they won't get loan in their old age. But if you are a retired person, receive pension every month, and your account is in State Bank of India, you do not need to worry. Even at this age, SBI can provide you loan facility to handle difficult situations.

SBI runs a special loan scheme for pensioners.

This scheme is- State Bank of India Pension Loan Scheme.

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Under this scheme, pension holders can take loan from the bank in difficult times.

However, the loan amount depends on their income. Know the details related to this scheme here.

Features of pension loan

Since the loan is for pensioners, the processing fee of the loan is very low.

The process of getting a loan is also fast and you don't need to submit too many documents.

The interest rates charged on pension loans are also generally lower than the interest rates on personal loans.

There are no hidden charges in this loan. Pensioners get the EMI option to repay the loan. You can apply for pension loan in any SBI branch.

Conditions for pension loan

This loan given to pensioners is like a personal loan. To avail this loan, it is necessary that the pension payment order of the borrower is with State Bank of India.
To apply for the pension loan from SBI, the age of the pensioner should be less than 76 years.
The pensioner will have to give an undertaking that during the period of the loan, they will not amend their mandate given to the Treasury.
The borrower has to give it in written to the Treasury that until a No Objection Certificate is issued from SBI, Treasury will not entertain requests by pensioners for transfer of pension payments to any other bank.
All other terms and conditions of the scheme including guarantee by spouse (eligible for family pension) or appropriate third party will apply,
The loan repayment period is 72 months, which will have to be repaid till the age of 78 years.
Other information related to loan will be available here

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