Retired individuals might face financial requirements which compel them to avail a loan. To meet this purpose, SBI provides loans to pensioners. Central or State Government or Defence pensioners who are below 76 years old can avail this loan. They need to draw their pension from one of the SBI branches. The loan needs to be availed from one of any SBI branch. The loan can be used to meet your personal financial needs.
Features and Benefits of SBI Pensioner Loans
- The processing fee is nominal. Defence pensioners need not pay any processing fee.
- Fast loan processing.
- The loan is devoid of interest costs.
- If you add credit into your loan account which will reduce the loan burden and interest.
- For central government employees the minimum loan amount is Rs.25,000. The maximum is pension of 18 months with a different upper cap for different ages.
- For defence employees the minimum loan amount is Rs.25,000. The maximum is 36 months’ Pension with a ceiling of RS 14.00 lac for Pensioners below 56 years. It is also pension of 18 months with a different upper cap for different ages.
- The repayment period has been listed on the basis of age, in the table below –
For Family Pensioners (including Defence Pensioners):
| Age at the time of Loan sanction | Repayment Period | Age at the time of full Repayment |
| Up to 72 years of Age | 60 months | 77 years |
| More than 72 years and up to 74 years | 48 months | 78 years |
| More than 74 years and up to 76 years | 24 months | 78 years |
For Central and State Government Pensioners:
| Age at the time of Loan sanction | Repayment Period | Age at the time of full Repayment |
| Up to 72 years of Age | 60 months | 77 years |
| More than 72 years and up to 74 years | 48 months | 78 years |
| More than 74 years and up to 76 years | 24 months | 78 years |
For Defence Pensioners:
| Age at the time of Loan sanction | Repayment Period | Age at the time of full Repayment |
| Up to 56 years | 84 months | 63 years |
| More than 56 years and up to 72 years | 60 months | 77 years |
| More than 72 years and up to 74 years | 48 months | 78 years |
| More than 74 years and up to 76 years | 24 months | 78 years |
Eligibility Criteria for SBI Loan for Pensioners
For Central and State Government Pensioners:
- The maximum age should be 76 years
For Defence Pensioners the individual should have been an employee of-
- Armed forces, CRPF, CISF, BSF, ITBP, etc. , Rasht Riya Rifles, Assam Rifles, and Coast guards
- He cannot be over 76 years of age
Family pensioner
- Spouse of the primary pensioner can receive the pension after his death.
- His/her age cannot be over 76
SBI Loan for Pensioners Interest rates
- SBI Loan for Pensioners Interest rate is 3.80% above 2 year MCLR. This is currently 13.05% per annum.
Other fees and charges
- For Central and State Government Pensioners and Family Pensioners the processing fee is 0.50% of the loan amount. This is subject to addition of GST (subject to a minimum of 500 and additional applicable GST.
- There is no processing fee for Defence Pensioners
- If you prepay the loan before the end of the loan tenure, you have to pay 3% as prepayment fees.
