While a personal loan is an excellent option to tackle financial emergencies in life, the normal age range of most lenders offering personal loan is between 23 to 60 years. Due to this, senior citizens are generally not eligible for personal loans. Fortunately, there are a few lenders in India that are working towards eliminating this inconvenience for the seniors.
Let us have a look at how this personal loan for senior citizens work-
What is the Senior Citizen Personal Loan?Your income plays a crucial role in deciding whether or not you are eligible for a personal loan. As most seniors do not have a regular income, lenders generally do not offer personal loans to people above the age of 60 years. However, if you do earn a regular pension, you might be eligible for the loan.
Some of the lenders in India now offer personal loans to pensioners. With this facility, pensioners can get a personal loan of up to 12-15 times their pension. Once the loan is taken, the EMI would be directly debited from their monthly pension for repaying the loan. You will be required to submit your pension documents to take this type of loan.
Personal Loan Against CollateralEven if you do not receive a pension, it can still be possible for you to get a personal loan. Many of the financial institutions offer personal loan against collateral. If you own assets like home or land, you can keep the same as a collateral or security and borrow loan against the same. The maximum loan amount you can borrow with this type of loan depends on the value of your collateral.
Fees and Charges of Senior Citizen Personal LoanSeniors are generally given preferential interest rate on personal loans. Even the processing fee is lower than what lenders typically charge on personal loans. A few lenders do not charge any loan processing fee on personal loans for senior citizens.
Managing Financial Emergencies with Personal Loan for SeniorsThanks to the availability of personal loans for seniors, even people above the age of 60 years can now easily manage their financial emergencies. Look for top lenders offering this facility and compare the interest rate and other charges and services to make the right decision.
Learn more about your Personal Loan Eligibility here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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