Apoorv Chaudhary
by on March 2, 2021

A personal loan for a pensioner is a great option for a person who is looking to have extra cash despite their low salaries. Personal loans for pensioners are also known as personal unsecured loans or personal loans. 

They are available in two forms, secured and unsecured. A secured personal loan is one in which collateral is required to obtain the loan. An unsecured personal loan is one in which there is no collateral.

There are several reasons why people apply for personal loans for a pensioner. First, most people who retire do not have a savings account. Therefore, they require money to meet certain basic requirements such as clothing, food, and housing. 

Another reason for applying for a personal loan for a pensioner is that the interest rates on such loans are usually low. Also, some lenders will waive the closing cost or processing fee. Now, let’s; look at two lenders' details. 

PNB Personal Loan Scheme for Pensioners

  • The personal loan for pensioners from PNB  bank is obtainable to senior voters drawing pension via a PNB account. The loan quantity may be accustomed meet emergency medical expenses of pensioners likewise as alternative monetary necessities.


All pensioners drawing pension via any PNB branch

Quantum of Finance

Minimum – Rs. 25,000


  • For pensioners aged up to 70 years: Rs. 10,00,000 or 18 times the net monthly pension (20 times the net monthly pension for defense pensioners)
  • For pensioners aged from 70 to 75 years: Rs. 7,50,000 or 18 times the net monthly pension (20 times the net monthly pension for defense pensioners)
  • For pensioners aged above 70 years: Rs. 5,00,000 or 12 times the net monthly pension

Processing charges


Documentation charges

Rs. 500 + GST

Rate of Interest

Base Rate + 2.5%


Guarantee of earning children, spouse eligible for family pension or third-party guarantee

Repayment Tenure

Maximum of 60 months-for pensioners aged above 75 the maximum repayment tenure is 24 months

Central Bank of India personal loan for pensioner

It’s a personal loan scheme from the Central Bank of India for pensioners. It’s available both as a term loan and an overdraft facility. 


  • All pensioners/family pensioners drawing pension via any Central Bank of India branch.
  • Pensioners who receive their pension via the Treasury or DPDO (Defence Pension Disbursing Office)
  • Pensioners receiving a pension from the Central Bank of India.

Loan amount

  • For pensioners aged up to 75 years: 18 months pension to a maximum of Rs. 5 lakhs
  • For pensioners aged above 75 years: 12 months pension to a maximum of Rs. 2 lakhs

 The applying process

Applying for a personal loan for a pensioner is simple. First, the applicant fills up an application form with the lender. The form may be obtained from the personal loan website or from any bank, where one has an account. 

Lenders will generally request a couple of personal details. These include the personal identification number (PIN), age proof, social security number, employer and payroll records, bank account details, and source of income.

Next steps

  • Once these details are received, the loan process is easy. A personal loan for a pensioner is granted in just a few hours. If necessary, personal loans can also be faxed directly to the lender. Some online lenders even offer a self-direct deposit facility so that the borrower will never miss a payment.
  • When applying for a personal loan for a low salary it is important to ensure the details submitted are accurate. This ensures the money is not stolen and the loan is not misused. It is advisable to ensure that the information is correct and complete before submitting it for approval.
  •  Some websites will offer an online feedback service for clients who have applied for personal loans. Users can use this feedback mechanism to report any inaccuracies or omissions.

Interest rate, disbarment timeline

  • Even though the interest rate charged on personal loans for a pensioner is normally higher than most personal loans, the amount approved is much faster. Within 24 hours of application, one can usually get a personal loan for a pensioner. Therefore, there is no need to spend more time waiting for days or weeks. One can repay the personal loan in installments.
  • However, a personal loan for a pensioner does require some discipline. One must make all payments on time and keep repaying the loan on time. Delinquent payments can lead to legal action being brought against the borrower. Therefore, one must always repay the loan in full to avoid such complications. Also, one must always be aware of the repayment schedule and pay off the loan early to minimize penalties.

What are the advantages? 

  1. There are many advantages associated with personal loans for a pensioner. The convenience of the process, the speed at which the loan is approved, and the amount lent at a low-interest rate make personal loans a good choice for those who need personal cash. 
  2. Anyone who knows that they may need additional cash in the future will welcome this option. For employers, this is an easy way to ensure that a worker has enough funds to cover unexpected costs. No matter what the reason for obtaining personal loans for a pensioner, one must remember that the loan must always be repaid in full.

Will you need collateral? 

  • One of the best things about personal loans for low-salary earners is that they do not carry any type of collateral. This means that there is no risk involved for the lender. They also have very flexible repayment terms so that they can easily be tailored to meet the needs of the borrowers. 
  • This flexibility can mean that personal loans can often be renewed at the end of the repayment period. This is another advantage over secured personal loans, as it is often easier to arrange for renewal with a personal loan than it is with a secured personal loan.

Of course, to find personal loans for a pensioner that suit his or her needs, it is important to shop around. Many traditional financial institutions do not offer this type of personal loan. Instead, many online lenders specialize in offering personal loans for a pensioner. These companies tend to be much more convenient and may offer better loan terms than the traditional banks. Therefore, looking online may be the better option if one does not have a lot of options with regards to personal loans for a low-salary earner.


As with anything, it is important to make sure that one fully understands the terms and conditions that come with any personal loan. In addition to fully understanding the loan agreement, it is also important to look into the interest rate that is attached to the personal loan. This interest rate should be reasonable, especially for personal loans for a pensioner

The last thing that a pensioner wants is to be paying out more money than he would on investment because of an inappropriate interest rate. This is especially important when one considers how sensitive these funds are


Posted in: Finance, Loan, loans
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