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Personal loan for pensioners

Personal Loan for Pensioners: Features, Eligibility and interest rates

Personal loan for pensioners are exactly the same as any other personal loan. Such loans are commonly referred to as pension loans. As with conventional personal loans, a pensioner who obtains a pension loan can use the loan proceeds for a wide range of purposes, including funding his child’s wedding, vacation vacations, medical or hospitalisation bills, and so on. Scroll down to read more about loan for pensioners and pension and loans.

Before you understand personal loan for pensioners, don’t forget to check out Airtel Flexi Credit’s Personal loans.

Also read: What is the maximum and minimum tenure for a personal loan?

Personal Loan for Pensioners

Pensioners with existing house loans and younger earning family members as co-applicants may consider obtaining a top-up home loan from their current lenders. Top-up house loan interest rates are often the same as those of the underlying home loan, therefore they are more likely to be lower than pension loan rates. Thus, a top-up house loan can broaden a pensioner’s consumption options, particularly if it was obtained from a lender other than the pension-drawing bank.

If their house loan provider refuses to grant them top-up home loans or charges them a higher interest rate, they should consider transferring their existing home loan to a lender who would approve a top-up home loan alongside the loan transfer. Pensioners with current house loans can compare home loan rates provided by multiple banks and housing credit companies to transfer their existing home loan at cheaper rates. They can also take up top-up home loans as an extra source of credit to satisfy personal needs.

If a pensioner is unable to obtain a personal loan from his pension-drawing bank, the easiest option to obtain credit is to ask an earning family member to obtain a personal loan and use his pension to repay the EMIs.

Also read: How to apply for a loan without income proof?


Eligibility for Pension Loan

Senior citizens are eligible to apply for personal loan for pensioners. Loan for pensioners are essentially personal loans for older persons based on their pension earnings. However, older individuals can only get pension loans from lenders with whom they have a pension account or a pension payment order.

Here are some points to be noted before applying for the loan-

  • The pensioner should be a citizen of India
  • The pensioner should be employed with a public, private or an MNC
  • The pensioner should have a CIBIL score of more than 685
  • The pensioner should be 80 years or younger
  • Family pensioners include authorised members of the family to receive a pension after the death of the pensioner.

Also read: What are the Various Types of Personal Loans?

How to Apply for a Pension Loan?

Here is how you can apply for a personal loan with the Airtel Thanks app

  • Download the Airtel Thanks app on your smartphone
  • Navigate to the financial services section and apply for your loan there
  • To apply for the loan, all you need to do is enter your personal information, PAN card, and employment details

Complete the KYC and receive your loan instantly!

Documents required for Pension Loan

Here is the list of documents required for pension loan-

  • KYC documents- Aadhaar Card, PAN Card, Passport
  • Employment proof
  • Salary slips
  • Bank account statements
  • Address proof

Interest Rates for Pension Loan

Different banks charge different interest rates for personal loans. With Airtel the interest rates start from 11.5% per annum.

Also read: Personal Loans for Self-Employed in India

Features for Pension Loan

Banks accept pension loans for seniors who keep their pension or pension payment order with them. A pension loan applicant’s loan eligibility is determined by the amount of money received from his pension account each month. Banks often do not need margin or security for pension loans. Banks normally charge lower interest rates on pension loans than they do on personal loans. Pensioners who do not get their pension have very few options for obtaining a pension loan or a personal loan from a bank. As a result, individuals generally have relatively limited consumer options for obtaining credit throughout their golden years.


A lot of banks and NBFCs provide house loans to older folks and retirees. Senior citizens and pensioners who meet the qualifying requirements of these financial organizations can get house loans. There are several incentives and features available on house loans for older persons. Get your personal today with Airtel personal loans and break your financial hurdles!