Pensioner Loan Scheme to consolidate your debts from Indian Bank.

A simple loan for pensioners to pare down their debts by consolidating their loans.

Indian Bank IB Pension Loan

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

Features of IB Pension Loan Scheme

Why this Loan?

  • The Indian Bank IB Pension Loan is designed to help Central and State Government pensioners, family pensioners, Re-employed pensioners, Indian Bank retirees (other than dismissed staff) maintaining pension accounts with Indian Bank 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

  • Regular Pensioner: The bank sanctions maximum of 15 times of the monthly pension drawn by the borrower up to Rs. 6 lakh
  • Family Pensioners: The bank sanctions maximum of 12 times of the monthly pension up to Rs. 2 lakh


  • As of October 2020, the applicable interest rate to this loan is 10.75% for loans repayable within 1 year, 11.50% for loans repayable in 1 to 3 years and 11.75% for loans repayable in 3 to 6 years. The bank offers 0.15% concession in interest rate to women


  • Regular Pensioner: The loan must be repaid within 5 years subject to exit age of 78 years
  • Family Pensioners: The loan must be repaid within 3 years subject to exit age of 73 years


  • Regular and family pensioners drawing regular monthly pension through the bank
  • Retired employees including VRS retirees other than dismissed or compulsorily retired employees of Indian bank
  • CRS retirees and EPF Pensioners are not eligible for this loan
  • The maximum entry age for this loan is 75 years for regular pensioners and 70 for family pensioners

Security Needed

  • Co-obligation of spouse, legal heir or family member is desirable. In the absence of a co-borrower, the bank accepts third-party guarantee

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

  • Loans up to Rs. 25,000: Nil
  • Loans Above Rs. 25,000: The bank charges up to Rs. 255 for processing these loans

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 Indian Bank Pension account including authorisation to recover monthly loan instalment from pension account

Reference Facts

  • Indian Bank Website:
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Toll-Free Number: 1800 425 00 000