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.
Here are Benefits of Personal Loan For Pensioners
Unsecured Personal Loan
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 Personal Loan Interest Rate
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.
The financial institutions do not enquire about the purpose behind availing these loans. Therefore, the loan proceeds can be used to fund various needs.
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.
Tips for Applying for Personal Loan for Pensioners
- 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.
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.
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.
Personal Loan for Pensioners 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.
Can I borrow against my state pension?
Pensioners can get personal loans against their pensions. Personal loans do not have end-use criteria and hence the loan amount can be used for any purpose as desired by the pensioner. Quite often, personal loans can only be availed at banks through which the pension is drawn. If that’s not the case, then other banks may demand a post dated cheque for the loan EMI.
Can pensioners get bank loans?
When a retired person applies for a bank loan the rules are quite similar for an employed person applying. It is more likely that the pensioner will have a long-standing relationship with the bank they are applying to, and many retired people may have investments, mortgage, and savings with the respective bank. The loan funds obtained from the bank can be used to finance all kinds of financial requirements.
Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!