Thursday - Aug 22, 2019

Can Pensioners and Retirees Get a Personal Loan?


Personal Loan

In the absence of a permanent job and regular stream of income, retirees and pensioners may find it hard to convince the lender about the repayment capabilities. Hence, it’s beneficial to apply for a personal loan at an earlier age to boost your chances.

A Personal Loan is a versatile financial product to address your diverse economic needs. In case of financial emergencies, a personal loan can be of great help, since there is no specific purpose tied to the loan. Also, since this is a collateral-free mode of financing, you can avail the funds without putting your personal assets on the line.

However, lenders do have certain eligibility guidelines in place when it comes to approving personal loan applications. It usually depends upon the monthly income, employment status, age and CIBIL score of the borrower. In case you fail to meet the eligibility criteria for personal loans, lenders may simply reject your application or charge high interest rates on the loan amount.

Can a pensioner or retired individuals avail a personal loan?

Often, financial institutions are stringent about the eligibility criteria when it comes to personal loan. Most common criterion is the age limit, which is often limited up to 60 years. In the absence of a permanent job and regular stream of income, senior citizens are seen as high-risk applicants by the lending institutions.

It means that retirees and pensioners may find it difficult to get their personal loan application approved by the lender as it is understandably tough for them to prove their repayment capabilities. Hence, it’s beneficial to apply for personal loans at an early age when you have an abundant flow of income, to avoid the financial pressures in your twilight years.

Apply for a personal loan before you retire

While you are approaching retirement, it’s imperative to take a few financial steps to ensure a worry-free retired life. A personal loan can be an efficient way to create a corpus and cater to various financial requirements during your golden days. Hence, it can be a good idea to apply for a personal loan before your retirement age to get it approved and spend the money later.

Apply early to get lower interest rates

Though there is a dearth of such products, there are a few financiers who offer personal loans for pensioners. However, the interest charged is high, making it difficult to service the loan instalments with pension cheques just covering your daily expenses. In order to avoid exorbitant loan EMIs, you should apply early to get better deals and best interest rates on your loan.

There are many banks and non-banking financial corporations that provide personal loans along with facilities like online application and quick verification process. You can get the loan amount disbursed in your bank account in as quick as 24 hours for a secured financial future during the golden days of your life.

Moreover, with pre-approved offers on a variety of loans and financial services from NBFCs, you can avail competitive interest rates and substantial loan amount. All you need to do is share a few basic details to avail your exclusive offer.