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A financial emergency can strike anybody anytime regardless of age or occupation. In this kind of situation, working people get the loan easily, however retired people sometimes face difficulty in acquiring the same. Therefore, to make the obtaining a loan process easy, financial institutions have come up with a solution which is a Personal Loan for pension holders, also known as Pension Loan. This loan is just the same as another personal loan. A pension holder can receive this personal loan against the pension they withdraw monthly and can use it for any purpose such as settling debts, paying outstanding bills, medical emergencies, etc.

Let’s have a look at its important aspects including features and benefits, eligibility, interest rate, and so on to gain more knowledge about it.

Features & Benefits of Personal Loan for Pensioners

Here are multiple features & benefits of a loan for pensioners.

  • Competitive Interest Rate

Several financial institutions offer this loan at a low-interest rate, allowing you to plan and manage your monthly budget in an organised way.

  • Personal Loan for Family Pensioners

In the event of your death, your spouse or the person who is authorised to receive your pension can also apply for this loan.

  • Minimal Documentation

You will be saved from the lengthy and time-consuming paperwork since you are required to submit only your identity proof, residential proof, and income proof (details of your pension).

  • No Need to Provide Security

Personal Loans are unsecured in nature. As a result, you are not required to provide any collateral in order to obtain it. You can simply get this loan against your pension.

  • Instant Approval & Quick Disbursal

Your loan will be granted in a couple of hours, and once approved, the funds will be deposited into your bank account immediately.

  • Multipurpose Loan

Financial institutions have not established any precise requirements for obtaining this loan. As a result, it is one of the quick and easy loans for pensioners that can be used for a variety of purposes, including vacations, debt repayment, and so on.

Personal Loan for Pensioners Interest Rates

The interest rate for this Personal Loan varies across banking organisations. You can refer to the table below to know more about the same.

Financial Institution

Interest Rate

State Bank of India

9.60% - 13.85%

Punjab National Bank






IDFC First Bank


Axis Bank

10.25% onwards

IndusInd Bank

11.49% onwards

Kotak Mahindra Bank

10.25% onwards

Central Bank of India

8.45% onwards

Bank of India

9.35% onwards

Top Pensioners Loan Providers in India

Below are the top financial institutions who provide Personal Loan for pension holders with best features.


Loan Amount

Interest Rate

Processing Fee

State Bank of India

Up to Rs. 14 Lakhs



Punjab National Bank

Up to Rs. 10 Lakhs



Central Bank of India

Up to Rs. 10 Lakhs

8.45% onwards


Bank of India

Up to Rs. 5 Lakhs

9.35% onwards


Disclaimer: Interest rates are subject to change as per the bank’s policies

Pensioners Loan Eligibility

Financial institutions offer loans for pensioners through online and offline mediums. However, before applying for it, you must be aware of the eligibility criteria to avoid rejection.

  • You must be an Indian citizen.

  • The maximum age to apply for this loan is 76 years.

  • The applicant should have served as a government or defence employee.

  • In the event of your death, the family pensioner (person who is authorised to receive the pension) can also apply for the Personal Loan. However, his/her age should be not more than 76 years.

How to Apply for Pensioners Loan

Following are the steps to follow to apply for a Personal Loan.

  • Choose a lender and visit its official website.
  • Go to the ‘Loans’ section and select ‘Personal Loan’ among the options.
  • Provide your details and upload the supporting documents.
  • Following that, verification will be done.
  • Once the institution verifies the information provided, your request will be approved and the amount will be transferred into your account within a couple of hours.

Documents Required for Pensioners Loan

To obtain a Pension Loan, you are obligated to submit only specified documents that are listed below.

  • Identity proof (Aadhaar card, Voter Id card, Driving licence)

  • Address proof (Aadhaar card, Passport, Utility bills, Voter Id card)

  • PAN card

  • Income proof

Frequently Asked Questions

How much loan can a pensioner get?

The amount can go up to Rs. 15 Lakhs.

How can I pay the EMI for my pensioners' loan?

You can repay the amount monthly in instalments through net banking, cash, cheque or DD.

Can senior citizens apply for a Personal Loan?

If you are drawing a pension, you can apply for a Personal Loan.

What is the repayment tenure offered for a Personal Loan for pensioners?

The payback period for a Personal Loan for pensioners varies based on your eligibility, loan amount, and other factors.

Can I get a loan on a pension?

Yes, you may apply for a Personal Loan against your pension. 

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