SBI Pension Loan Scheme: Features, Eligibility and Interest Rate

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SBI Pension Loan Scheme

India’s top lender State Bank of India (SBI) is offering pension loans to pensioners at attractive interest rates. The pensioners include central and state government pensioners, defence pensioners, and family pensioners receiving a regular pension through the bank. In this post, let’s read more about SBI Pension Loan Scheme: Features, Eligibility, and Interest Rate.

SBI Pension Loan for Pensioners

State Bank of India offers pension loans to senior citizens and family pensioners receiving a regular pension from the central or state government through the bank. This loan can be taken to buy your dream home, fund your child’s marriage, plan a trip or get medical aid.

With this loan, the retirement just got merrier. Just call SBI pension loan customer care number 1800-11-2211 for more information or applying through the contact centre. You can also give a missed call on 7208933142 or send SMS “PERSONAL” on 7208933145 to get a call back from the SBI contact center.

SBI Pension Loan Highlights
Rate of Interest 9.75 percent
Loan Amount Rs.2.50 lakh to Rs.14 lakh
Loan Tenure 24 Months to 84 Months
Prepayment Charges 3% on Prepaid Amount

As per a tweet by SBI Bank on its Twitter handle @TheOfficalSBI, the SBI pension loan interest rate is 9.75 percent.

Features of SBI Pension Loan

1. The processing fee is low.

2. The loan processing is completed quickly.

3. There are no hidden costs or administrative charges.

4. Easy EMIs (Equated Monthly Instalments) through SI.

5. The documentation for loan processing is minimal.

6. You can apply for this loan at all State Bank of India branches.

7. Loan amount ranging between Rs.2.5 lakh to Rs.14 lakh.

8. The loan tenure ranging between 24 to 84 months.

SBI Pension Loan Eligibility

Below is the loan eligibility criteria that must be kept in mind when applying for this loan:

For Central & State Government Pensioners

1. The applicant should be below 76 years of age.

2. Pension payment order is maintained with State Bank of India.

3. The pensioner should furnish an irrevocable undertaking not to amend his/her mandate to the Treasury during the tenure of the loan.

4. The Treasury to give consent in writing that it will not accept any request from the pensioner to transfer his/her pension payment to any other bank till a NOC is issued.

5. All other terms and conditions of the scheme will be applicable, including a guarantee by the spouse (eligible for a family pension) or by a suitable third party.

For Defence Pensioners

1. The applicant should be a pensioner of armed forces, including Army, Air Force, Navy, Paramilitary Forces (CISF, CRPF, ITBP, BSF, etc.), Rashtriya Rifles, Assam Rifles, and Coast Guards.

2. Pension payment order is maintained with State Bank of India.

3. There is no minimum age bar under the scheme.

4. The maximum age at the time of loan processing should be less than 76 years.

For Family Pensioners

1. Family pensioners include authorized members of the family to receive a pension after the death of the pensioner.

2. The applicant should not be more than 76 years of age.

Maximum Eligible Loan Amount and Repayments

The SBI pension loan age limit is also mentioned in the below table:

For Central and State Government Pensioners:

Age at the Time of Loan Sanction Maximum Loan Amount Repayment Period Age at the Time of Full Repayment
Below 72 years 18 months Pension or Rs.14.00 lakh 60 months Up to 77 years
72 – 74 years 18 months Pension or Rs.12.00 lakh 48 months Up to 78 years
74 – 76 years 18 months Pension or Rs.7.50 lakh 24 months Up to 78 years

For Defence Pensioners:

Age at the Time of Loan Sanction Maximum Loan Amount Repayment Period Age at the Time of Full Repayment
Below 56 years 36 months Pension or Rs.14.00 lakh 84 months Up to 63 years
56 – 72 years 36 months Pension or Rs.14.00 lakh 60 months Up to 77 years
72 – 74 years 36 months Pension or Rs.12.00 lakh 48 months Up to 77 years
74 – 76 years 36 months Pension or Rs.7.50 lakh 24 months Up to 78 years

For Family Pensioners (including Defence Pensioners):

Age at the Time of Loan Sanction Maximum Loan Amount Repayment Period Age at the Time of Full Repayment
Below 72 years 18 months Pension or Rs.5.00 lakh 60 months Up to 77 years
72 – 74 years 18 months Pension or Rs.4.50 lakh 48 months Up to 78 years
74 – 76 years 18 months Pension or Rs.2.50 lakh 24 months Up to 78 years

SBI Pension Loan Documents

The SBI pension loan documents may vary depending upon the category that you belong to. The list of basic documents is as follows:

1. Identity proof such as Pan Card, Voter ID Card, Passport, Driving License, Aadhaar Card.

2. Address proof such as Passport, Ration Card, Driving License, Bank Account Statement, Aadhaar Card, Telephone Bill, Electricity Bill, Property purchase agreement (for owned properties).

3. Income proof can be pension payment order.

SBI Pension Loan Interest Rate 2021

The SBI pension loan rate of interest is 9.75% as per a tweet by the State Bank of India. SBI Tweeted: “Get Pension loans at 9.75% and have a happy retirement. All you need to do is SMS <PERSONAL> on 7208933145”.

SBI Pension Loan Calculator 2021

You can calculate the EMIs of your pension loan using the SBI pension loan EMI calculator 2021. For the State Bank of India pension loan calculator, click here.

How to apply for SBI Pension Loan?

You can apply for this loan in the following ways.

1. For SBI pension loan apply online, click here.

2. Dial 1800-11-2211 for applying through the contact centre.

3. By giving a missed call on 7208933142 to get a call back from the SBI contact centre.

4. BY sending SMS “PERSONAL” on 7208933145 to get a call back from the State Bank of India contact center.

Terms and Conditions

1. EMI/NMP ratio shall not exceed 33% in all the cases for family pensioners.

2. EMI/NMP ratio shall not exceed 50% in all other types of pensioners.

3. The prepayment charges will be 3% on the prepaid amount.

4. There are no prepayment/ foreclosure charges if the account is closed from the proceeds of a new loan account under the same scheme.

5. The repayment mode of the loan is furnished by Standing Instructions to debit the pension account for recovery of the EMIs.

6. Guarantee of loan is secured by TPG of spouse eligible for family pension or any other family member or a third party eligible for a pension loan.

FAQs (Frequently Asked Questions)

1. What is the interest rate of pension loan in SBI?

Currently, the interest rate of pension loan in SBI is 9.75%.

2. How much loan can I get on pension?

You will get a loan amount ranging between Rs.2.5 lakh to Rs.14 lakh from SBI depending upon the category that you belong to.

3. Is it necessary to have an account in SBI to get this loan?

Yes. State Bank of India offers pension loans to state or central government pensioners, defense pensioners, or family pensioners drawing their pension through SBI bank.

4. I am 78 years old. Can I apply for this loan scheme?

No, you cannot apply for this loan scheme. To be eligible for this loan you need to be below 76 years of age.

5. How can I repay this loan?

You can repay your loan through EMI payments over a tenure of 2 years to 7 years. You can repay it by giving standing instructions to debit the payable amount from your bank account automatically on the due date.

Final Thoughts

I hope now you know the features, eligibility, and interest rate of the SBI pension loan. You can take this loan to fund your child’s marriage, plan a trip, buy your dream home or get medical aid. If you need the money and can’t arrange the required money from anywhere else, this loan is a good option.

Also Read: SBI Gold Loan: Interest Rate, Features, Eligibility, and Processing Charges

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