Personal Loan for Pensioners

Select Public Sector Banks and NBFCs, including State Bank of India, Bank of Baroda, Punjab National Bank, Central Bank of India, Bank of India, and Shriram Finance offer personal loans to pensioners at competitive interest rates with flexible repayment options.

Instant Personal Loans up to ₹40 Lakhs – Apply Now

Banks and NBFCs offering Personal Loans to Pensioners

1) State Bank of India (SBI) Pension Loan

Purpose: To meet urgent cash requirements for purposes like the child’s wedding, paying medical bills, vacations, home renovation and much more.

Eligibility: Pensioners/Family Pensioners drawing pension through SBI.

Features:

• Interest Rate: 11.60% p.a. onwards
• Loan Types: SBI Pension Loan, Jai Jawan Pension Loan, Pension Loan to Treasury/ PSU Pensioners & Pre-Approved Pension Loans (PAPNL)
• Loan Amount: As per the applicant’s profile and creditworthiness
• Loan Tenure: 72 months (Loan to be repaid by 78 years of age)
• EMI/NMP ratio: May not exceed 50% in all other type of pensioners
• Prepayment Charges: 2% on prepaid amount

2) Bank of Baroda (BOB) Loan to Pensioners

Purpose: To meet urgent financial needs other than speculation

Eligibility: Age: 21 – 75 years & Pensioners/ family pensioners drawing pension through our Bank’s branches are eligible

Features:

• Interest Rate: 9.50% p.a. onwards
• Repayment Tenure: Up to 60 months
• Processing Charges: Pensioners / Family Pensioners of our Bank: Nil & For Others: Rs. 1000 plus GST
• Foreclosure Charges: Nil

Loan Amount:

Pensioner Type	Regular Pensioners	Family pensioners
Up to 70 years	Rs. 8 lakh	Rs. 3 lakh
Above 70 years	Rs. 5 lakh	Rs. 1.50 lakh

3) Punjab National Bank (PNB) Personal Loan Scheme for Pensioners

Purpose: To meet personal requirements, including medical expenses and to offer funding assistance to public drawing pension through Punjab National Bank

Eligibility: All the types of pensioners drawing pension through PNB branches

Features:

• Interest Rate: 11.35% p.a. onwards
• Loan Type: Demand Loan/ Term Loan/ Overdraft
• Loan Amount: Up to Rs. 10 lakh
• Repayment Tenure: Up to 5 years
• Processing Fee: Nil
• Security: Guarantee required of spouse/earning children/third party (Any one)
• Repayment: Maximum 60 EMIs & In case of pensioners above 75 years: Maximum 24 EMIs
• Margin: Nil

4) Central Bank of India: Cent Pensioners

Purpose: For personal requirements, excluding any speculative activity or investment in real estate.

Eligibility: Pensioners/Family Pensioners drawing pension through Central Bank of India, including ex-staff

Features:

• Interest Rate: 10.60% p.a. onwards
• Nature of Loan: Demand loan and Overdraft
• Loan Amount: Up to Rs. 10 lakh or 18 times the monthly pension
• Minimum Credit Score: 700
• Repayment Tenure: Up to 60 months
• Processing Fee: Nil
• Co-borrower: Pensioner’s spouse or legal heir(s) of the family pension beneficiary

5) Bank of India (BOI) Star Pensioner Loan Scheme

Purpose: For various personal uses like paying medical bills, home renovation, debt consolidation, etc. Not for any speculative purpose.

Eligibility: Regular pensioners or family pensioners drawing regular monthly pension via BOI & Retired employees (other than dismissed/compulsorily retired) are eligible

Features:

• Interest Rate: 11.60% p.a. onwards
• Nature of Loan: Term Loan, Demand Loan, Overdraft (reducible as per repayment schedule)
• Loan Amount: Up to Rs. 10 lakh
• Repayment Tenure: Up to 5 years
• Processing Fee: 2% of the loan amount
• Prepayment Charges: Nil

6) Shriram Finance Loan for Pensioners

Features:

• Interest Rate: 12% – 42% p.a.
• Loan Amount: Rs. 25,000 – Rs. 5 lakh
• Repayment Tenure: Up to 5 years
• Processing Fees: 0.50% – 5% of the loan amount + GST
• Collateral: Nil

Note: Interest rates and charges are updated as of 28 May 2025.

Eligibility Criteria for Availing Personal Loan for Pensioners

Find below the basic eligibility criteria defined by various banks offering personal loans to pensioners that shall vary from lender to lender:

• Age criteria: 55-65 years or above (Usually varies from bank to bank)
• Income: Ideally, Rs. 2-3 lakh per annum. Stable and continuous income from pensions, investments and rentals helps in securing personal loans for pensioners
• Credit Score: 750 and above is preferred for better negotiation
• Repayment Capacity: Lenders access your repayment capacity, if you can repay the loan amount within defined tenure

Documents Required

If you are a pensioner and require a personal loan, the find below the basic documents required by lending banks and NBFCs:

• Identity Proof: KYC documents: PAN card, Aadhaar Card, Voter’s ID, Passport
• Proof of Address: Aadhaar, Passport, Voter ID, Utility Bills (Gas, Water, Electricity)
• Income Documents: Pension statement, Bank Statements showing pension deposits
• Employee ID card and Pension Certificate

FAQs on Personal Loan for Pensioners

What is the interest rate of pension loan for pensioners?

The interest rates offered to pensioners by banks and NBFCs shall vary from lender to lender and shall depend on applicant’s profile.

Is a pensioner eligible for a personal loan?

Yes, pensioners and senior citizens are eligible for personal loans; however, the eligibility criteria may differ from bank to bank and slightly from the salaried individuals.

Which loan is best for pensioners?

Determining the best loan offered to pensioners shall be tough, as it shall depend on your financial requirements, such as required loan amount, desired repayment tenure, etc.

What is the personal loan scheme for pensioners in PNB?

Punjab National Bank (PNB) offers a dedicated Personal Loan Scheme for Pensioners that offers personal loans at an interest rate starting from 11.35% p.a. for loan amount up to Rs. 10 lakh or 18 times of net monthly income.

Who is not eligible for pension loan?

Pensioners who are not drawing pension through the lending bank, as well as the pensioners above the maximum age limit are not eligible to avail personal loans.

Can senior citizens apply for a personal loan?

Yes, senior citizens can apply for a personal loan. In fact, pension loans are basically personal loans for senior citizens offered on the basis of their pension income. However, senior citizens can avail pension loans only from the lenders with whom they maintain their pension account or pension payment order.

What is the age limit of SBI pension loans for pensioners?

Pensioners applying for personal loans from SBI should be below 76 years of age.