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Pension Loans |
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Are you worried about your finances during the old age, then Pension Loans are the best as they would definitely suit your purpose! Bank Loans in India are now not just confined in offering loans for homes but are now offering lucrative Pension Loans which are well designed to provide the much needed financial support and security to people in the old age. Now days leading financial institutions and banks are introducing initiatives and taking care of economical independence of retired individuals. This is done through the unique pension loan.
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It’s basically a loan term loan to meet personal expenses. The loan is however available to pensioners till the age of 70. The maximum amount of such type of loan sanctioned is generally 7 to10 times the amount of last pension received. The amount however can vary from individual to individual depending upon his repayment capacity. Repayment in this case is normally done through Equated Monthly Installments or EMI and the period can vary from 1-3 years. Depending on your requirement, you can choose any type of Pension Loans.
While you’re applying for Pension Loans, make sure to know that the banks generally charge according to the prime lending rate prevalent at the time of taking the loan.
The interest rate can either be fixed or floating. Sometimes a discounted interest rate is also levied by banks. Personal Loans have now been diversified into different areas of banking and each of the products launched under this category has its own set of advantages. In this case, special mention needs to be made of the companies offering Pension Loans like State Bank of India. In India, especially according to the rules and regulations of State Bank of India, if one is a Central or State Government pensioner drawing pension through one of our branches and are not more than 72 years of age, one can avail of a loan from the branch to meet personal expenses.
However, in that case, one can avail a loan of up to a maximum of 12 months with a ceiling of Rs.1, 00,000. The loan can be easily repaid over a period of 5 years and will carry a low interest rate of 13.25% p.a. Thus, Pension Loans are as easy as they could be.
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