Sometimes retired individuals face difficulty in availing of personal loans, hence to make the process easy, the banks have come up with a solution of Personal Loans to Pensioners i.e. Pension Loans. It means a pensioner can avail of this loan against the pension they withdraw on a monthly basis that can be used for any purposes like settling debts, paying outstanding bills, medical emergencies, etc.
Once a pension loan is availed, the repayment is to be done in monthly installments which are known as Equated Monthly Installments (EMI). Customers can use EMI Calculators to calculate the number of EMIs and Interest costs on the loans with the help of loan amount, interest rates, and the repayment period. Pensioners can also use SBI Personal Loan EMI Calculator to calculate the EMI of their SBI Pension Loan.
| SBI Pension Loan – A Snapshot | |
| Interest rates | 11.20% p.a. onwards |
| Loan amount | Based on the monthly pension drawn by the applicant |
| Repayment tenure | SBI Pension Loan: 6 years |
| Insta Pension Loan scheme through YONO: 3 years | |
| Processing fee | 0.50% of the loan amount + applicable taxes (Minimum INR 250) |
Features of SBI pension loan:
- Low Processing Fees
- No hidden costs
- Quick loan processing
- Easy EMIs through SI
- Minimal documentation
- You can Apply at all SBI branches
SBI Pension Loan Interest Rates
| Pension Loan Schemes | Rate of Interest (p.a.) |
| SBI Pension Loan | 11.20% |
| Jai Jawan Pension Loan | 11.20% |
| Pension Loan Scheme For Treasury & PSU Pensioners | 11.20%-11.70% |
| Pre-Approved Pension Loans(PAPNL) | 11.20% |
| Pre-approved Insta Pension Top-Up | 11.20% |
Eligibility Criteria
For Central & State Government Pensioners
- The pensioner should be below 76 years of age.
- The pension payment order is maintained with SBI.
- The pensioner is to furnish an irrevocable undertaking not to amend his mandate to the Treasury during the tenure of the loan.
- The Treasury to give consent in writing that it will not accept any request from the pensioner to transfer his pension payment to any other bank till a NOC is issued
- All other terms and conditions of the Scheme will be applicable, including a guarantee by the spouse (eligible for family pension) or by a suitable third party.
B. For Defence Pensioners
- Pensioners of Armed Forces, including Army, Navy, and Air Force, Paramilitary Forces (CRPF, CISF, BSF, ITBP, etc.), Coast Guards, Rashtriya Rifles, and Assam Rifles.
- The pension payment order is maintained with SBI.
- No minimum age bar under the scheme.
- The maximum age at the time of processing the loan should be less than 76 years.
C. For Family Pensioners
- Family pensioners include authorized members of the family to receive a pension after the death of the pensioner.
- Family pensioners should not be more than 76 years of age.
Maximum Eligible Loan Amount and Repayments
| For central and state government pensioners: | |||
| Age at the time of loan sanction | Age at the time of loan repayment completion | Maximum loan amount (18 months pension or) | Repayment period |
| Below 72 years | Up to 77 years | INR 14 lakhs | 60 months |
| 72 – 74 years | Up to 78 years | INR 12 lakhs | 48 months |
| 74 – 76 years | Up to 78 years | INR 7.5 lakhs | 24 months |
| B. For Defence pensioners: | |||
| Age at the time of loan sanction | Age at the time of loan repayment completion | Maximum loan amount (36 months pension or) | Repayment period |
| Below 56 years | 63 years | INR 14 lakhs | 84 months |
| 56 – 72 years | 77 years | INR 14 lakhs | 60 months |
| 72 – 74 years | 78 years | INR 12 lakhs | 48 months |
| 74 – 76 years | 78 years | INR 7.5 lakhs | 24 months |
| C. For Family Pensioners (Including Defence Pensioners): | |||
| Age at the time of loan sanction | Age at the time of loan repayment completion | Maximum loan amount (36 months pension or) | Repayment period |
| Below 72 years | 77 years | INR 5 lakhs | 60 months |
| 72 – 74 years | 78 years | INR 4.5 lakhs | 48 months |
| 74 – 76 years | 78 years | INR 2.5 lakhs | 24 months |
Important Terms and Conditions for SBI Pension Loan
- EMI/NMP ratio shall not exceed 50% in all other types of Pensioners.
- EMI/NMP ratio shall not exceed 33% in all the cases for Family Pensioners
Prepayment charges – 3% on prepaid amount. - No prepayment/ foreclosure charges if the account is closed from the proceeds of a new loan account under the same scheme.
- The repayment mode of the loan is furnished by Standing Instructions to debit the pension account for recovery of the EMIs. Guarantee of loan is secured by TPG of Spouse eligible for family Pension or any other family member or a third party eligible for a pension loan.
How to Apply for SBI Pension Loan?
SBI Pension Loan is another type of personal loan offered by the State Bank of India. One can easily apply SBI pension Loan or any other personal loan online by visiting SBI official website, then navigating to the personal loan section, and clicking on the SBI Personal Loan Apply Now button. Alternatively, one can also visit any branch of the State Bank of India to proceed with the offline application process.
Let us go through the steps to apply for SBI Pension Loan:
Step 1: Visit the official website of SBI.
Step 2: Go to the “Loans” section and click on “Personal Loan” from all the options available.
Step 3: Submit the details required along with the supporting documents.
Step 4: The bank will verify the information provided, and then the request would be approved.
Step 5: Within the next 2 hours, the amount will be transferred to the bank account.
Documents Required
Below mentioned are the documents required to apply for SBI pension Loan:
| Identity proof | A copy of your passport, Aadhaar card, driving license, PAN Card, etc. |
| Residence proof | A copy of your rental agreement, property documents, utility bills, Aadhaar Card, Voter’s ID Card, driving license, etc. |
| Pension proof | Bank statement of the past six months showing the pension being credited to the beneficiary’s account |
| Other documents | A recent photograph of the borrower. PAN Card and/or Aadhaar Card might also be required |
