Indian Bank Pension Loan: Know Interest Rate & Documents Required

Updated: 12-04-2022 08:10:06 AM

Please Note: Indian Bank is not a Paisabazaar partner. Offers would be from partner Banks/NBFCs only.

Indian Bank pension loan scheme is available to pensioners to meet their personal financial needs arising out of situations like medical emergencies, children’s marriage, home renovation, etc. The maximum loan amount available is up to Rs. 6 lakh for regular pensioners and Rs. 2 lakh for family pensioners with interest rates starting from 11.15% p.a. onwards

Features of Indian Bank Pension Loan

Following are some of the important features of Indian Bank Pension Loan:

• Loan can be availed by pensioners and family pensioners drawing their pension from Indian Bank
• This loan cannot be availed by CRS retirees, EPF Pensioners.
• The loan margin is NIL
• Affordable interest rates and processing charges
• Quick documentation and simple processing

Indian Bank Pension Loan Interest Rates

Indian Bank offers loans to pensioners at affordable rates of interest with rates varying based on the loan tenure. The following are the pension loan interest rates charged by Indian Bank for various tenures.

Eligibility Criteria

Given below are the eligibility criteria required to avail Indian Bank personal loan:

• The loan can be availed by ex-employees of Central and State Government, family Pensioners, re-employed pensioners.
• Ex-employees of Indian Bank who have their pension SB accounts at an Indian Bank branch can avail the loan.
• This loan facility is not extended to retirees of CRS and EPF pensioners.

Documents Required for Indian Bank Pension Loan Application

Following are the lists of documents required for applying Indian Bank Pension Loan:

• Authorisation to recover monthly loan instalment from SB Account where pension is credited
• Guarantee of spouse eligible for family pension. If spouse is not available, suitable guarantee from legal heir, family member or suitable third party guarantee acceptable to the bank.
• Pensioner’s receipt of PPO (Pension Pay Order)

Quantum of Loan

Mentioned below are the maximum loan amounts which can be availed under the Indian Bank pension loan:

• For Family Pensioners: 12 months’ pension subject to a maximum of Rs.2.00 lakhs
• For Regular Pensioners: 15 months’ pension subject to a maximum of Rs.6.00 lakhs

Fees and other Charges

If the loan amount is up to 25,000 then there are no processing charges, if the loan amount is above Rs.25,000 then a flat processing fee of Rs.255 + GST is levied. Other fees and charges will be notified to applicant at the time of loan approval.

Indian Bank Customer Care

For any query related to loans and advances, customers can get in touch with the Indian Bank customer care in the following ways:

• By phone – 1800-425-0000 and 1800-425-4422 (Toll-Free)
• By visiting the nearby branch of Indian Bank
• By email – ibhocustomerservice@indianbank.co.in

FAQs

Q1. How can I apply for Indian Bank Pension Loan?

You can visit the nearest branch of Indian Bank in-person and submit physical copies of the relevant documents along with the completed pension loan application form to apply for pension loan.

Q2. What is the interest rate to avail pension loan?

Indian Bank charges a nominal rate of interest starting from 11.15% p.a.

Q3. What is the loan margin under pension loan?

There is no loan margin under the pension loan. However, the bank may ask for a suitable guarantee as part of the loan disbursal process.

Q4. What is maximum age to avail a pension loan from Indian Bank?

·        For Regular Pensioners- 75 years (max. exit age 78 years)

·        For Family Pensioners- 70 years (max. exit age 73 years)

Q5. What is the maximum amount of pension loan I can avail from the bank?

If you are a family pensioner, you can avail a maximum loan amount of Rs. 2 lakh under the pension loan scheme from the bank. For regular pensioners, this maximum amount is set higher at Rs. 6 lakh.