This loan is devised for individuals who are availing a pension from any branch of the Punjab National Bank. The detailed features and benefits of the loan scheme are as follows:
- The loan can be used for meeting any type of personal needs of pensioners which might also include any type of medical expenses
- Every individual who is a pensioner and draws his pension from the branch of the bank can avail the loan
- The minimum amount of loan available is Rs.25, 000 while the maximum amount of loan depends on the age of the borrower. For borrowers aged up to 70 years the maximum allowable limit of loan would be Rs.10 lakhs or 18 times the net monthly pension drawn which is increased to 20 times the pension drawn in case of defense personnel, whichever is lower. For borrowers who are above the age of 70 years and up to 75 years, the maximum allowable loan amount is lower of Rs.7.50 lakhs or 18 times the net monthly pension drawn which is increased to 20 times the pension drawn in case of defense personnel. For ages above 75 years the maximum loan would be lower of Rs.5 lakhs or 12 times of monthly pension drawn.
- The loan does not have any margin requirement and is issued without any margin
- The rate of interest charged on the loan would be linked to the Marginal Cost of Fund Based Lending and would be MCLR + 2.60% per annum
- No processing charges would be payable as upfront fee because the loan has no processing fee requirement
- Documentation charges would be payable on the loan amount which would be Rs.500 and the applicable service taxes.
- The loan is issued as a secured loan where guarantee of the spouse who is eligible for family pension is required or the guarantee of children if they are earning and are government employees or a third party guarantee who is acceptable to the bank and whose net worth is equivalent to the loan amount availed would be required as security
- The repayment tenure also depends on the age of the borrower. For pensioners aged up to 75 years, a maximum of 60 months are allowed as repayment period while for pensioners above the age of 75 years, the repayment period is reduced to a maximum of 24 months. The repayment installments would be fixed on such basis that all deductions which also include the EMIs of the proposed loan should not be higher than the prescribed limit of 50% of the net monthly pension.