Home Loan for Pensioners and Senior Citizens

Learn more about Home Loan for Pensioners and Senior Citizens

✓ Home Loan from ₹2 Lakhs To ₹15 Cr ✓ Multiple Lending Partners ✓ Interest Rates Starting @ 8.25%

Many financial institutions offer housing loans to senior citizens, including those living on pension. This article will take you through every detail you need to know about home loan for pensioners and the institutions that offer it.

Features and Benefits for Home Loan for Pensioners and Senior Citizens

  • Pensioners and senior citizens are charged very nominal fees during loan processing

  • Such applicants enjoy discounted interest rates while availing home loans

  • Home loans for pensioners and senior citizens are comparatively quickly processed and disbursed

  • Such loans can be applied for easily and the verification process is hassle-free too

  • Pensioners and senior citizens can pay off their home loans over a long repayment tenure (Up to 30 years)

Compare and Apply for Housing Loans for Retired Persons


Best known for

Bajaj Housing Finance Limited

  • Loan available Up to ₹2.5 Cr

  • Low Interest Rates (starting at 8.30% p.a)

  • Customisable loan options

  • Balance transfer and top-up facility

  • Relatively low CIBIL score requirement (650 or above)

  • Interest subsidy available for Pradhan Mantri Awas Yojana (PMAY) beneficiaries

PNB Housing Finance Limited

  • Low interest rates (starting at 8.25% p.a.). Minimal processing fees to boot (0.5% of the total loan amount).

  • Availability of financing of up to 90% of the property value.

  • Loan repayment tenure of up to 30 years

Home First Finance Company

  • Interest rates starting at 9.50% per annum

  • Providing funding of up to 90% of the property value

  • Loan repayment tenure (up to 25 years)

  • Minimal processing fees (starting at ₹9,990)

Union Bank of India

  • High available loan amount (up to ₹15 Cr)

  • Competitive interest rates (starting at 8.25% p.a)

  • Availability of long repayment tenure (up to 30 years)

  • Low processing fees (higher of ₹15,000 + GST or 0.5% of the loan amount + GST)

Eligibility Criteria for Home Loan for Pensioners and Senior Citizens

To get a home loan, the pensioner or senior citizen applicant must fulfil the below-mentioned eligibility criteria:

  • The applicant must have served a private firm, public sector firm or an educational institution of repute.

  • The applicant must be drawing pension from the same bank through which they want to avail the loan. Some lenders do not emphasise this criteria, but will simply ask for a post-dated cheque (PDC) for security purposes.

  • The pensioner must draw at least ₹5,000 per month as pension from their bank. The loan amount will depend on the pension income the applicant receives yearly.

  • The applicant must be below the age of 75. Some institutions put the cap on the age criteria at 70.

Documents Required for Home Loan for Senior Citizens

The pensioner must submit the following documents to apply for a home loan:

  • Up to 3 passport-size photographs

  • Photo identity proof: PAN card, Aadhaar card, Passport, Voters ID card

  • Age Proof: Aadhaar card, Passport, PAN card

  • Pension income proof: Pension certificate, pension returns receipt and bank account statements showing the monthly credit of the pension.

Things to Consider while applying a Home loan for Pensioner

  • Credit Score: The approval of home loan on pension depends largely on the credit score of the pensioner. Having a high credit score reflects the high repayment capacity of pensioners. Moreover, it also helps in availing a higher loan amount at a reduced interest rate. On the other hand, if pensioners have a low credit score, it can lead to the rejection of their application. This can further hamper your credit score.

  • Equated Monthly Instalments: With the help of an online housing loan EMI calculator, retired individuals can calculate their monthly instalments beforehand. This will allow them to have an estimate of the monthly cash outflow that they would have to incur to repay for the home loan. It is advisable for pensioners to calculate their EMIs beforehand and avail a loan amount depending upon their repayment capacity.

  • Home Loan Eligibility, Terms, and Conditions: The housing loan eligibility criteria for pensioners may vary from one lending institution to another. Therefore, it is advisable to check home loan eligibility as well as terms and conditions set by the lender beforehand. Also, you can check home loan eligibility using our home loan eligibility calculator.

  • Charges levied by financial institutions: Borrowers should make a note of the interest rate before availing the house loan interest rate. Even a slight variation in the interest rate can help the borrowers save a large amount of money in the long run. Therefore, it is important to study and compare the various types of loans available in the market. This will help them apply for a loan that best suits your needs. Along with interest rate, borrowers should also make a note of the prepayment fee, upfront fee, and processing charges.

Tips on How an Individual can Obtain a Home Loan after Retirement

Retired individuals can avail a home loan by taking into account the following tips:

  • Assigning a Co-Applicant: Retired individuals can increase their chances of availing a home loan by adding an earning individual as a co-applicant. This will not only increase the chances of their loan approval but they will also be eligible for a higher loan amount.

  • Limit Your Applications: If you are a pensioner looking to avail a housing loan for pensioners, you must make sure that you have a healthy credit score. If you make multiple loan applications and they get rejected, it will hurt your credit score significantly. Therefore, it is advisable that you compare various loan offers provided by different lenders and then apply for a home loan that best suits your needs.

  • Apply for a Secured Loan: Secured loans are the ones in which the borrower has pledge collateral while availing the loan. In case of default, the lender reserves the right to seize the collateral to compensate for the loss. This makes a secured loan easier to avail as compared to unsecured loan. Therefore, retired individuals must apply for a secured loan.

  • Choose a Lower Loan to Value (LTV) ratio: LTV ratio is the ratio of the finance provided by the bank via home loan to the finance the borrower would have to use as down payment for the house. Opting for a lower LTV ratio would increase the chances of loan approval.

With the help of Housing Loans available at Bajaj Markets, retired individuals can easily avail a loan with the help of a hassle-free online application process. Instant approval, flexible repayment tenure are some of the added advantages of availing a Home Loan. Lastly, it is advisable to read all the terms and conditions of the loan agreement carefully before signing it. This can help you avoid any inconvenience in the later stages.

FAQs on Home Loan for Pensioners

  • ✔️Can a pensioner get a loan?

    Yes, a pensioner can get a home loan. But, to get one, the applicant must fulfil the eligibility criteria laid out by lenders. Note that it can differ from institution to institution. Most of the banks only grant home loans to such pensioners who have their pension accounts with them. But, some banks/Non Banking Financial Institutions (NBFCs) are willing to make an exception and will grant home loans to pensioners with a minimum repayment tenure.

  • ✔️Do I require a guarantor to get a home loan for pensioners?

    No, a pensioner does not require a guarantor to get a home loan.

  • ✔️What should be my age to avail home loan for pensioner?

    Banks are only willing to grant home loans to pensioners who are under 75 years of age. Some banks/NBFCs, on the other hand, put the cap on the age criteria at 70. Very few lending institutions will be willing to give home loans to pensioners who are more than 75 years old.

  • ✔️How much loan amount can I get under the home loan to pensioners scheme?

    A pensioner can avail a home loan of up to ₹25 Lakhs. The maximum amount one can avail will, however, majorly depend on their age at the time of applying and yearly pension income.

  • ✔️What is the maximum repayment tenure available for home loan to pensioners?

    A pensioner can repay their home loans over the course of 25 years. It will, however, depend on their age at the time of applying, their yearly pension income and repayment capability, among other factors.