Personal Loan for Senior Citizens & Pensioner: Eligibility & Documents

The hard work of the senior citizens in their earlier years has played a crucial role in shaping up the modern Indian society. They have abundantly contributed to the betterment of the country and are considered an important asset. While the government has launched several schemes to help senior citizens, financial emergencies often prove challenging for them.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-

Financial emergencies and financial crises can come knocking at anyone’s door, no matter how old they are and what they are going through. Even if you are a senior citizen, you might face financial problems. It can be due to an unforeseen expense, or some unexpected medical emergency. You may be facing a temporary financial crunch, and to get out of it, a senior citizen personal loan will help you. You can easily use your pension as your leverage and take a senior citizen personal loan to get out of that unexpected expense.A personal loan for senior citizens is a type of personal loan granted to senior citizens above the age of 60. There is not much difference between personal loans for senior citizens and personal loans for younger ones. The minor difference between both the personal loan types is the interest rates and some other requirements by the financial institutions.The most important requirement for senior citizens is that they should have a pension. Most lenders don’t approve loan applications when the senior citizen who applied for the personal loan doesn’t have a regular source of income. That is why having a source of income or a pension is important if you want to have your application for a personal loan for senior citizens approved by lenders.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.

Even 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.

There are a few things that you need to keep in mind when it comes to being eligible for a personal loan. The eligibility criteria are similar, from applying for senior citizen personal loans to being an applicant for a personal loan for younger ones. But if you are applying for a senior citizen personal loan, you will be eligible if you keep these things in mind:

• The personal loan applicant for senior citizens has to be a resident of India.
• The age of the applicant of the personal loan for senior citizen has to be 65 years or above during the time of the maturity of the loan.
• The applicant's minimum monthly income or pension of the personal loan for senior citizen should be not less than 20000 rupees per month. But if you are a resident of Mumbai or Delhi, the minimum monthly income or pension of the applicant for a senior citizen's personal loan should be not less than 25000 rupees per month.

The other things that you need to keep in mind are while applying for senior citizen personal loan :

• You are eligible for a personal loan at the age of 60 of you are a pensioner, but you will be required to repay the loan in 60 months.
• If you take the senior citizen personal loan at the age of 63, you will be provided with 24 months to repay the loan.
• The applicant is eligible for the amount that is 12-18 times the monthly pension.

Required documents for senior citizen personal loan

• Personal loan application form filled with the applicant's recent photograph
• The applicant's identity proof such as driving license, copy of passport, pan card, voter ID
• The applicant's residence proof includes a copy of passport, ration card, driving license, electricity bill, bank passbook, telephone bill, etc.
• The applicant's proof of age such as passport, pan card, Aadhar card, etc.
• The applicant's bank passbook with the previous six months income records.
• Form 16
• The applicant's income proof such as salary slips or income statements (depending on whether you are a salaried or a self-employed person)
• Processing fee cheque.

There are various ways you can use to apply for a senior citizen personal loan. Whichever you find most convenient, you can use that method to apply for a senior citizen personal loan. No different ways to apply for a personal loan for senior citizens are as follows:Online application: everything is now available online. From grocery shopping to buying clothes online, you can find it all on the Internet. And the same goes for online applications. The online way is one of the most convenient ways to apply for a senior citizen personal loan because of how hassle-free the process is.

• Email application you can also choose this method to apply for a senior citizen personal loan. You need to mail the bank of your choice about your requirement, and the bank will get in touch with you.
• Visit the branch As the title says, you can simply visit the financial institution's branch, and they will make sure all your requirements are taken care of.
• Phone request You can simply call the financial institution on their contact number mentioned on their website, and they will get in touch with you about the same.

Seniors 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.

Thanks 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.