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A home loan plays a crucial role in empowering senior citizens to fulfil their housing goals, which can make their lives after retirement more comfortable. Such loans provide them with opportunities to downsize, upgrade, or purchase a new home. Here are some more details about home loans for pensioners and senior citizens.

Features and Benefits of Home Loans for Pensioners and Senior Citizens

Here are the features and benefits of availing a home loan for pensions and senior citizens.

  • Pensioners and senior citizens can enjoy discounted interest rates on a home loan

  • Such applicants are usually charged lower a processing fee for a home loan

  • Pensioners and senior citizens can apply for a home loan online and enjoy a hassle-free application process

Eligibility Criteria

Some of the common home loan eligibility requirements for retired individuals include the following:

  • Maximum Age Limit:

The maximum age limit that financial institutions consider is about 70 to 75 years.

  • Income/Pension:

Lenders often prefer senior citizens who have previously worked in the public sector or banks due to the stability of their pension. Generally, for a home loan to be approved, the EMI amount must not exceed 60% of the borrower’s pension.

  • Maximum Repayment Tenure:

Usually, a retired individual or a senior citizen can get a home loan with a maximum repayment tenure of about 15 years. 

  • Maximum Loan Amount:

Most financial institutions offering home loans for senior citizens grant funds of up to 70% of the home’s value. 

  • Requirement of Additional Collateral:

The requirement of additional collateral depends on various lenders, the required loan amount, the financial profile of the borrower, and many other factors. 

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Documents Required

To get a home loan, pensioners and senior citizens usually need to submit the following documents:

  • Photographs: Passport-sized

  • Proof of identity: Aadhaar card, PAN card, Voters ID card, Passport

  • Proof of age: Aadhaar card, PAN card, Passport

  • Proof of income or pension: Pension certificate, pension returns receipt or bank account statements showing the monthly credit of the pension

Things to Consider When Applying for a Home Loan as a Pensioner

Here are some essential points that you should consider prior to applying for a home loan as a pensioner:

  • Credit Score

Credit scores can influence the approval of a home loan as these scores are a reflection of your creditworthiness and experience with credit. Having a high credit score reflects the high repayment capacity of pensioners.

  • EMI Amount

With the help of a Home 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 the home loan. 

  • Eligibility, Terms, and Conditions

The home loan eligibility criteria for senior citizens set by various banks and NBFCs may differ. Hence, checking the home loan eligibility requirements, terms and conditions in advance can help. Additionally, pensioners can make use of our home loan eligibility calculator to check their eligibility for a home loan.

  • Associated Charges

Borrowers should check the interest rate charged before applying for a home loan. Even a slight variation in the interest rate can help the borrowers save a large amount of money in the long run. Along with interest rates, borrowers should also make a note of the prepayment fee, upfront fee, and processing charges.

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Tips on Acquiring a Home Loan after Retirement

The following tips can be beneficial for retired individuals, looking to apply for a home loan.

  • Apply with a Co-Applicant

As senior citizens, you can enhance your eligibility for a home loan by including an earning individual as a co-applicant to the loan. By doing so, you not only increase the likelihood of home loan approval but also become eligible for a higher loan amount.

  • Improve Your Credit Score

You should prioritise maintaining a healthy credit score. This score is usually impacted by the number of loan applications you have submitted recently. Multiple loan application rejections can impact your creditworthiness. 



Using the information and tips mentioned above, increase your chances of securing a home loan. Get started today by checking the various home loan offers available on the Bajaj Markets platform!


Can a pensioner get a home loan?

Yes, it is possible for a pensioner to get a home loan. However, certain eligibility criteria established by the chosen lender must be fulfilled by the applicant. 

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 is the maximum age at which a pensioner can get a home loan?

Senior citizens and pensioners with an age of up to 75 years can generally apply for a home loan. However, this age limit may differ from one lender to another.

What is the maximum repayment tenure available for home loans to pensioners?

A pensioner can repay their home loans over the course of up to 15 years. It will, however, depend on their age at the time of applying, their yearly pension income and repayment capability, among other factors. 

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