Thinking of a Personal Loan for Senior Citizens to pay off your debts?

Take a look at State Bank of India SBI Pension Loan

State Bank of India Pension Loan

This loan helps pensioners to get funds to meet their urgent financial needs expenses for a child’s wedding, leisure travel, medical emergency, etc. This loan can also be availed to pay off high-interest credit card debts and loans thereby consolidating debt. Only the pensioners maintaining a pension account with SBI are eligible for this loan.

Features of SBI Pension Loan

Why this Loan?

  • The State Bank of India SBI Pension Loan is meant for pensioners, drawing pension through SBI, who need financial assistance to meet urgent personal needs including medical expenses
  • Family pensioners are also eligible for this loan
  • This is a collateral-free loan

Loan Amount

  • The maximum loan amount offered under this loan scheme is Rs. 14 lakh. The actual loan amount sanctioned by the bank depends on the repayment capacity of the borrower, age of the borrower, type of pensioner, etc.

Interest

  • The interest rate applicable to this loan is defined as the sum of two factors: one-year Marginal Cost of Funds based Lending Rate (MCLR) and a Spread factor. As of October 2020, the interest rate applicable to this loan is 8.05% for SBI pensioners and 9.05% for other pensioners

Repayment

  • This loan must be repaid within 5 years subject to the maximum age criterion of 78 years, whichever is earlier. The actual repayment period depends on the type of pensioner, age of pensioner, loan amount, etc.

Eligibility

  • Pensioners, Defence Pensioners and Family Pensioners drawing pension through State Bank of India
  • The maximum age for pensioners to apply for this loan is 76 years

Security Needed

  • This is an unsecured loan, meaning you don’t have to offer any collateral to get the loan
  • The bank may ask for a guarantee of spouse eligible for family pension, earning children or third-party guarantee

Processing Charges

  • The bank charges 0.50% of the total loan amount for processing this loan with a minimum of Rs. 500 and a maximum of Rs. 2,500

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
  • Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Pension account details

Reference Facts

  • State Bank of India Website: www.sbi.co.in and www.onlinesbi.com (net banking)
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 11 2211, 1800 425 3800