Financial crisis is the most unexpected situation occurs anytime. High inflation, higher medical costs and emergency expenses are bothering much to senior citizens than working professional. If you face a financial crisis while you are employed, you have the option get personal loans but what after retirement?
Those who are retied but still have some source of income or draw pension, the doors are not closed for them. Nowadays several banks offer special loans for such people.
In this article we will tell about everything for those pensioners who are seeking personal loans.
It is the common perception of people that they can’t get unsecured loans post retirement. This is completely false. Banks offer various loan schemes for both the central government employees and state government employees drawing their pensions. The same is applied on the family members, if they are drawing pension on account of deceased pensioner.
- Time tenure
Ex- serviceman can repay loans through fixed Equated Monthly Installment (EMI). However, there are few important things to know regarding loan repayment such as loan recovery must be completed before the borrower turns maximum 78 it means if the borrower is 70 then the maximum time tenure he would get is only 8 years. It may vary from banks to banks. Also, it’s mandatory for banks to set EMI in such a way that it won’t exceed 40% of the total pension drawn per month.
- Important to have Co-signer
As we know that personal loans are unsecured loans and the lender poses higher risk. To cover that, they may demand some collateral or a guarantor may be spouse, children or other family members. This could increase the chances of getting loans to the pensioner.
- Interest rates
Every other bank has their own charged rates on the loan to pensioner. It all depends upon the base rate of the bank. Most of the banks tend to charge low interest rates on the personal loan to the pensioner compare to normal rates.
- Features of personal loans
Usually banks charge low processing fee or even no fee for loans to pensioner. Usually personal loans are fast processed but in case of the loan to this group, the processing is even faster. Borrower can reduce the loan interest rate any time they credit money in the loan account.
There are various banks which offer good rates on personal loans including axis bank personal loans and SBI loans. They even offer loans for pensioner on good deals. Now, senior citizen need not worry and can avail these loans from banks near them.