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Personal Loan for Pensioners

By Finserv MARKETS - Dec 2,2019
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Personal Loan For Pensioners

Heavy expenses can hamper your finances, especially if you are a retired individual with a fixed monthly budget. At such times, this loan can prove to be extremely helpful. This loan is one of the finest options for the retirees who are in need of immediate cash. These loans are unsecured loans that can be used for multiple purposes. Thus, it is possible to avail personal loans without pledging collateral. In addition to that, these loans have minimum eligibility criteria and hassle-free application process. All these features of a personal loan make it a preferred financing option for senior citizens.

Pension is a regular source of income for the retirees. However, an emergency can turn their finances upside down. This is where these loan can be of great help to retired individuals. Let’s have a look at some of the benefits of personal loan for pensioners:

Unsecured loans

No collateral is required to be pledged for a these loan. This keeps your valuable assets safe in case you happen to default on your loan.

Lower Interest Rates

Most of the lending institutions provide personal loan on pension at a lower rate of interest. Therefore, pensioners can avail a low-interest secured loan without having to risk any of their assets.

Multipurpose loans

The financial institutions do not enquire about the purpose behind availing these loans. Therefore, the loan proceeds can be used to fund various needs.

Minimal Documentation

While availing a personal loan, the applicants are required to submit only identity proof, address, and income proof. In case of pensioners, income proof would be the bank statement that shows regular pension being credited into their bank accounts. The documentation process is even simpler when retirees apply for a personal loan from the bank where their pension is credited.

Instant approval and quick disbursal

With leading financial institutions, applicants can apply for these loan from the comfort of their home. Instant approval and quick disbursal of the loan amount are some of the other advantages of availing a personal loan with a leading financial institution.

While applying for these loan, pensioners should take care of the following aspects

Interest rates

  • The interest rate on these loans is usually the biggest difference between financial institutions. Therefore, while taking these loan, it is advisable to compare the interest rates as well as the annual percentage rate (APR). This will help the pensioners have a better understanding of the total cost of availing a loan.
  • Pensioners should always settle for these loan with the lowest interest rate as it would reduce the cost of borrowing significantly. A good credit score can be helpful in availing a personal loan at most competitive interest rates. Whereas, bad credit history will not only lead to an increased interest rate but also hamper the chances of loan approval.

Loan amount

Pensioners should borrow the amount according to their needs. Over borrowing can lead to an increased repayment burden in the long run. Therefore, it is advisable that pensioners should evaluate their financial requirements beforehand and apply for a personal loan for pensioners accordingly.

Additional charges

Pensioners should compare the processing fees, prepayment charges, tenure change charges and other hidden expenses of various financial institutions before taking these loan. A bit of research can help them save a large chunk of money in the long run.

Avoid add-on offers on loans

Once you have availed a personal loan, you should refrain taking any extra offers on it. Any type of add-on can increase your financial burden. Therefore, it is advisable to avoid such offers at all costs.

The credibility of the financial institution

Before availing a personal loan from a particular lender, pensioners should check its credibility and authenticity. This will help them avoid any kind of inconvenience in the later stage.

Check your EMI beforehand

Before availing a personal loan for pensioners, it is advisable to calculate the EMI beforehand with the help of an online EMI calculator. This can help the borrowers to make timely repayment of their personal loan.

Eligibility and Application process

The eligibility and application process for a loan for pensioners with conventional banks are quite stringent. Whereas, with the help of prominent Non-Banking Financial Institutions (NBFCs) like Bajaj Finserv MARKETS, pensioners can avail these loan easily through minimal documentation. Moreover, unlimited withdrawal and flexible repayment tenure are some of the added advantages of availing a personal loan through leading NBFCs.

Also, Bajaj Finserv Personal Loan gives them an opportunity to customize their loans according to their needs.

Lastly, it is advisable to read all the terms and conditions of the personal loan for pensioners agreement carefully before signing it. This can be helpful in avoiding any inconvenience in the later stage.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522