Pensioners at an age of 75 years or lower get a maximum of 18 months of pension. The highest bracket is close to Rs. 5 lacs. However, for pensioners above 75 years of age get a maximum of 12 months’ pension limited to a maximum of Rs. 2 lacs.
How has the banking & financial system transformed?
The banking and financial system has changed considerably. The flexible & user-friendly policies are nowadays offered to all types of customers, whether young or old, employed or retired. Banks and NBFCs extend their loan schemes to the retired and unemployed too. Pensioners can now apply for a personal loan online and take care of their financial aspirations in case of emergencies.
The loan schemes for pensioners allow the pensioners to take the loan against FDs, sizeable pension, National Saving Certificates (NSCs), etc. It’s true for most Banks & Financial Institutions to avoid giving loans to pensioners, assuming their financial capability to be low. A few important banks like SBI, Dena Bank, Bank of Baroda, etc. have introduced personal loans to pensioners as well. of India. Also, it’s possible to check your eligibility for a personal loan to pensioners. Although, the eligibility criteria remain the same for most banks, the rates of interest keep changing.
Benefits of Personal Loan for Pensioners
It’s difficult to maintain a lavish lifestyle after your retirement. Though, a regular pension is sufficient enough to meet ongoing costs, emergency expenses, urgent cash crunch, etc., which can turnaround your financial condition. And as we understand, it’s even more important for the pensioners to maintain savings for future. So, whenever they face cash crisis, a personal loan comes to rescue.
Few benefits of instant personal loans can be viewed as under:
- No Collateral Needed– The assets of the pensioners stay safe under lock and key if they opt for a personal loan to meet financial needs. No collateral/security is required to be surrendered to take a personal loan.
- Low Interest Rates- Lending institutions permit pensioners to take personal loans at low interest rates. Therefore, pensioners realize the benefits of a low interest loan online, not at the risk of the valuable assets of a lifetime.
- Variety of Use- The personal loans can be used for all purposes that you like. The instant cash can be easily utilized to finance different needs. Provided the funds are used for all the legitimate activities, not just anything.
- Quick Documentation- Since we are talking about unsecure loans, they need easy and quick documentation. The prospective borrowers are required to submit their validated ID proofs, address documents along with income statements. Since, this personal loan is for pensioners, presenting a bank statement fits sufficient. A bank statement clearly shows regular transfer of pension on a monthly basis. The paperwork turns simpler when you apply for a personal loan from the bank that carries your account already.
- Quick Approval– As we understand, personal loans are the easiest form to get borrowed money instantly. And this is why they are preferred in case of contingencies. Also we have previously mentioned that the approval will be much faster if the account belongs to the same bank.