Retired bank personnel (or pensioners) require money for meeting basic necessities during their golden years. Bank employees especially from government organizations make some kind of investments during their working career so that they get sufficient corpus in order to meet basic necessities. In addition to this, many individuals receive pension after their retirement.
However the corpus may not be sufficient if any emergency arises. Either they will have to use their personal savings or ask money to their children or acquaintances.
In such situations, personal loan for bank employee is a good alternative to get money and meet the necessities.
However any lender would first ask for income to evaluate credit worthiness and calculate loan amount that can be granted. Assuming post retirement, individual does not have income getting a loan is difficult and also the age factor can create hindrance. Most banks have a maximum age limit which is typically 60 years.
So how can bank employee get personal loan? There are many banks offering personal loan to pensioners (i.e. who are drawing pension from the banks where they were working). This also includes retired bank employees. The table below also shows age limit and loan quantum of the pension holder.
|Name of Bank or Financier||Age Limit (at the date of maturity of the loan)||Maximum Loan Amount||Repayment Term|
|Union Bank of India||Above 70 years allowed||2 lakh||3 Years|
|Canara Bank||Above 65 years allowed||4 lakh||5 years|
|Syndicate Bank||Over 70 years||1.50 lakh||6 years|
|Indian Bank||78 years||6 lakh||5 years|
|Andhra Bank||NA||4 months pension||5 years|
|Bank of India||Above 75 years allowed||1 lakh||5 years|
|Allahabad Bank||Above 65 years allowed||1 lakh||4 years|
|Punjab National Bank||Above 75 years allowed||7.50 lakh||2 years|
|Dena Bank||Max. 80 years||1.50 lakh||3 Years|
|Oriental Bank of Commerce||Max. 75 years||5 lakh||NA|
|Central Bank of India||Above 75 years allowed||2 lakh||NA|
|United Bank||Max. 75 years||10 Lakh||NA|
|Tamilnad Mercantile Bank||NA||Upto 95% of one month pension||NA|
|Bank of Maharashtra||Upto 73 years||3 lakh||5 years|
|IDBI Bank||75 years||5 lakh||5 years|
|Vijaya Bank||Max. 72 years||2 lakh||5 years|
|South Indian Bank||Upto 55 years||25 lakh||15 years|
|UCO Bank||NA||4 lakh||3 Years|
|Corporation Bank||NA||Upto 10 months NET Pension||5 years|
In the above table; age shows the maximum age on which loan matures.
Other options to get loan are:
Personal loan against fixed deposit: If retired bank personnel has fixed deposit account in the bank then he/she can get personal loan against FD. The quantum of the loan amount is typically 80%-85% of the amount kept in the account. The biggest benefit is that interest rate is low.
Against securities: Personal loan against mutual fund, gold, shares, insurance policy is another cheaper option to get loan. Borrower will have to pledge any of these assets with the lender and get loan against it. Since this is a secured loan, the interest rate is low.
Peer to peer lenders: Another emerging option to get loan is from peer to peer lending (P2PL) companies. Their eligibility criteria are different than banks.
Features of personal loan given to pensioners (including bank employees):
- No processing fee by most of the banks
- Loan amount is small since risk is high for the lender
- Loan can be used for any purpose
- Age criteria is relaxed compared to private banks such as ICICI, HDFC and others who have strict limitation
- Not all banks ask for guarantor or security
From where should bank employee get personal loan?
Bank staff should keep in mind that more the money saved in their golden years, better would be the life. So first thing to do in order to meet emergency requirement is use own saving as much as possible and then take personal loan for the remaining amount required.
Always go for low interest loan. One way is to get personal loan against fixed deposit or securities. These loans are offered at lower interest rate compared to traditionally applied loans.