Bank of India Star Pensioner Loan Scheme

Star Pensioner Loan Scheme to consolidate your debts from Bank of India (BOI).

A simple loan for pensioners to consolidate their loans.

Bank of India Star Pensioner Loan Scheme

This loan helps pensioners get access to funds to meet their personal needs. While this secured loan can be used to meet expenses for overseas travel, medical exigencies and so on, it can also be used to consolidate high-interest debts. This loan cannot be availed for speculative purposes.

Features of Bank of India Star Pensioner Loan Scheme

Why this Loan?

  • The Bank of India Star Pensioner Loan Scheme is designed to help regular and family pensioners drawing pension from Bank of India who want to avail financial assistance for personal needs. Borrowers can also avail this scheme to pay off their high-interest credit card debts and loans, thereby consolidating their debts
  • The maximum loan amount sanctioned by the bank under this loan depends on the monthly pension drawn by the borrower

Loan Amount

  • Unsecured Loan: The bank sanctions maximum of 3 times of the monthly pension drawn by the borrower up to Rs. 1.5 lakh
  • Secured Loan: The bank sanctions maximum of 15 times of the monthly pension drawn by the borrower subject to an upper limit of Rs. 5 lakh
  • Age Limitation: For borrowers aged above 75 years, the total loan amount is capped at Rs. 1 lakh in all instances


  • The applicable interest rate on this loan is defined as the sum of two factors namely, Repo Based Lending Rate (RBLR) of Bank of India and Strategic Premium (SP)
  • As of October 2020, the RBLR of Bank of India is 6.85% and the SP for this loan is 2.50% bringing the effective interest rate at 9.35%


  • As of October 2020, the repayment period is not mentioned on the bank’s website. Call a bank representative for more details


  • Regular and family pensioners drawing regular monthly pension through the bank
  • Retired employees other than dismissed or compulsorily retired employees of the bank

Security Needed

  • This loan can be availed as an unsecured loan as well as a secured by pledging a property, securities, etc. If you want to secure this loan, please talk with a bank representative to know your options

Margin Money (Borrowers Contribution to Total Cost)

  • As of October 2020, this information is not mentioned on the bank’s website. It is likely that the bank may not ask for any margin money as there is usually no fixed or specific purpose for which the money is needed, unlike a car loan or a home loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, a margin of 20% means you will have to contribute Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing Charges

  • Borrowers Under the Age of 60 Years: The bank charges 2% of the total loan amount for processing this loan, with a minimum of Rs. 500 and up to a maximum of Rs. 2,000
  • Borrowers Above the Age of 60 Years: There are no processing charges for this loan

Documents Needed

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Documents related to the Bank of India Pension account

Reference Facts

  • Bank of India Website: and
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 220 229, 1800 103 1906