Loans To Pensioners - Personal Banking

Eligibility

For Central & State Government Pensioners

• The pensioner should be below 76 years of age.
• Pension payment order is maintained with SBI.
• The pensioner to furnish an irrevocable undertaking not to amend his mandate to the Treasury during the tenure of the loan.
• The Treasury to give consent in writing that it will not accept any request from the pensioner to transfer his pension payment to any other bank till a NOC is issued
• All other terms and conditions of the Scheme will be applicable, including guarantee by the spouse (eligible for family pension) or by a suitable third party.

For Defence Pensioners

• Pensioners of Armed Forces, including Army, Navy and Air Force, Paramilitary Forces (CRPF, CISF, BSF, ITBP, etc.), Coast Guards, Rashtriya Rifles and Assam Rifles.
• Pension payment order is maintained with SBI.
• No minimum age bar under the scheme.
• Maximum age at the time of processing the loan should be less than 76 years.

For Family Pensioners

• Family pensioners include authorized members of the family to receive pension after the death of the pensioner.
• Family pensioner should not be more than 76 years of age.

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Maximum Eligible Loan Amount and Repayments

• For Central and State Government Pensioners:

  Age at the time of Loan sanction	Max Loan Amt (18 months Pension or Rs.)	Repayment Period	Age at the time of full Repayment
  Below 72	14.00 lakh	60 months	Up to 77 years
  72 - 74 years	12.00 lakh	48 months	Up to 78 years
  74 - 76 years	7.50 lakh	24 months	Up to 78 years

• For Defence Pensioners :

  Age at the time of Loan sanction	Max Loan Amt (36 months Pension or Rs.)	Repayment Period	Age at the time of full Repayment
  Below 56 years	14 lakhs	84 months	63 years
  56 - 72 years	14 lakhs	60 months	77 years
  72 - 74 years	12 lakh	48 months	78 years
  74 - 76 years	7.50 lakh	24 months	78 years

• For Family Pensioners (including Defence Pensioners) :

  Age at the time of Loan sanction	Max Loan Amt (18 months Pension or Rs.)	Repayment Period	Age at the time of full Repayment
  Below 72	5.00 lakh	60 months	77 years
  72 - 74 years	4.50 lakh	48 months	78 years
  74 - 76 years	2.50 lakh	24 months	78 years

Terms and conditions

• EMI/NMP ratio shall not exceed 33% in all the cases for Family Pensioners
• EMI/NMP ratio shall not exceed 50% in all other type of Pensioners.
• Processing fee Zero processing fee for defence pensioners.
• 0.50% of the loan amount + Tax for all other Pensioners including family Pensioners.
• Prepayment charges - 3% on prepaid amount.
• No prepayment/ foreclosure charges if the account is closed from the proceeds of a new loan account under the same scheme.
• Repayment mode of the loan is furnished by Standing Instructions to debit the pension account for recovery of the EMIs.
• Guarantee of loan is secured by TPG of Spouse eligible for family Pension or any other family member or a third party eligible for pension loan.