The State Bank of India offers pension loans to senior citizens who obtain a pension from the central or state government. This unsecured personal loan for pensioner alternative can be taken in use by a pensioner to meet with several personal financial requirements such as those coming up from their marriage of children, home renovation, vacation or payment of medical bills.
These loans come along flexible repayment tenor of up to 7 years and feature an appealing low rate of interest. SBI Pension Loan can easily be availed without any hassle with the easy application process and needs nominal documentation.
Important Factors about SBI Pension Loan
· Rate of Interest - 9.75% p.a. onwards
· Loan Amount - Up to Rs. 14 lakhs
· Loan Tenor - Up to 7 years
· Processing Fee - 0.50-1% of the Loan Amount + GST
· Prepayment Charges - 3% on prepaid amount
Features of SBI Pension Loan
· Loan amount
You can take out a pension loan from SBI ranging from Rs. 2.5 lakh to Rs. 14 lakhs to cope with several sorts of personal financial requirements.
· Flexible repayment tenor
You can pay off your SBI pension loan within a suitable tenure ranging from 2 to 7years.
· Nominal documentation
The State Bank of India asks for nominal documentation to proceed with your loan application. This preserves good deal of time and allows faster disbursement of the loan amount.
· Swifter loan processing
With nominal documentation and hassle-free application process, your SBI pension loan goes through faster processing.
Eligibility Criteria
In order to avail a personal loan for pensioners from SBI, the following are the eligibility criteria that must be considered while applying:
For Central & State Government Pensioners
· The applicant should not exceed the age limit of 76 years.
· The payment order of the applicant should be sustained with SBI.
· You should provide an unalterable undertaking to the Treasury during the loan tenure.
· The Treasury to render consent in writing that it won’t accept any sort of request from the pensioner to transfer his/her pension payment to any other bank until a NOC is issued.
· Proper third-party guarantee or guarantee by the spouse.
For Defense Pensioners
· The applicant should be the pensioner of armed forces, including Army, Navy and Air Force, Paramilitary Forces, Coast Guards, Assam Rifles and Rashtriya Rifles.
· Pensioner’s pension payment order should be sustained with SBI.
· The maximum age of the pensioner at the time of loan processing should be below than 76 years.
For Family Pensioners
· Family pensioners comprise authorized members of the family to obtain pension post the death of the pensioner.
· Family pensioner should not exceed the age limit of 76 years.
Documents Required for SBI Pension Loan
The documents needed to avail SBI pension loan may differ based on the applicant category. Nonetheless, the list of fundamental documents is given below:
· Proof of Identity: Pan Card, Aadhaar Card, Voter Identity Card, Driving License, Passport
· Proof of Address:Aadhaar Card, Electricity Bill, Telephone Bill, Passport, Driving License, Ration Card, Bank Account Statement, Sale Deed/Property purchase agreement (for owned properties)
· Proof of Income: Pension payment order
Final words
SBI is among leading pension loan providers in India thus you can opt for it with one eye closed since it is the largest bank of India with an extensive customer base which makes it reliable in many senses.
If you are receiving the pension in any of SBI’s branch and looking to avail of special pension loan in India then SBI pension loan is one of the optimal options for you.