Top Benefits of Personal Loans That Will Make Your Life Easier as Senior Citizens

Whether you are in your 50s or 60s, everyone needs financial aid in an emergency situation. Personal loans have always been of help to people from all walks of life. Personal loans assist people with their urgent financial needs.

Personal loans are widely available and easy to get. Older people, such as retirees, can plan to make the best use of personal loans for their needs. Usually, banks and personal loan providers see senior citizens as a higher risk. The reason for this is that senior citizens do not have a reliable source of income. Most banks have an upper age cutoff. Beyond this age, you cannot get a personal loan. As a result, senior citizens may find it hard to get a personal loan.

However, the good news is that many lenders nowadays know how important financial support is for seniors. They provide retirees with unique personal loans. Each plan comes with a variety of advantages. Here is a list of benefits and details required to get a personal loan for senior citizens.

Features of a Personal Loan for Senior Citizens

Here are some of the important features of a personal loan for senior citizens.

Eligibility Requirements

• Senior citizens retiring from the central or state government
• Former employees of private firms get a regular monthly pension
• Spouses receiving a family pension on their partner’s behalf

Repayment Schedule

Most regular personal loans have a 12- to 60-month repayment term. Various lenders follow different repayment schedules.

Interest Rate

Personal loans for senior citizens have lower interest rates than standard personal loans. Several factors that influence the interest rate include:

• the amount taken as a loan
• the borrower’s age
• the loan-provider bank’s policy
• the collateral or security offered 

Security or Collateral

Personal loans do not need any security or collateral because they are unsecured loans. Also, there is no need for an additional guarantee as pension loans are given to senior citizens withdrawing a stable pension.

Key Takeaways

• Pensioners can get personal loans immediately from banks to meet their financial needs.
• Personal loans for senior citizens have different entry requirements.
• Senior citizens can apply for a personal loan without the hassle of much paperwork.
• Banks offer low-interest personal loans to people over the age of 60, and the monthly payments can be made in different ways.
• Financial problems can come at any time and at any age. Even with a monthly pension, old people cannot cover their living expenses. Additionally, unforeseen events can arise, and their financial plans may fail. Senior citizens may need a large amount of money immediately to wade through such situations. Today, there are many lenders who offer personal loans for senior citizens and support them with financial help.

Benefits of Personal Loans for Senior Citizens

Senior citizens’ needs may change. Some would want to avail themselves of a loan to pay off an outstanding car loan. Likewise, others might use a personal loan to meet various wedding costs for their children. A personal loan could also be used for medical purposes. Some benefits of personal loans for senior citizens are listed below:

• The interest rate is low based on the age of the senior citizen. The rate differs for people aged 70 and above.
• Seniors don’t have to worry about making payments because they have more time to pay back their loans.
• A co-applicant or guarantor can help them get the loan approved.
• Some banks even offer low processing fees for senior citizens.

Basic Conditions for Personal Loans

• The lender may need a security or guarantee to approve the loan.
• The applicant will have to submit the required documents while applying for the loan. They will have to submit the pension documents each month.
• Some lenders look into a retired borrower’s health situation for loan approval.

Who Can Apply for a Personal Loan for Senior Citizens?

Defence Pensioners

• Residents of India below 76 years of age.
• Pensioners of the Rashtriya Rifles and Assam Rifles, Paramilitary Forces (CRPF, CISF, BSF, etc.), Coast Guards, Air Force, Navy, and Army.

Central and State Government Pensioners

• Residents of India below 76 years of age.
• Third-party guarantee or spouse.

Family Pensioners

• Residents of India below 76 years of age.
• On the death of the main pensioner, the authorized family members can receive the pension.

Documents for Applying for a Personal Loan for Senior Citizens

The individual could be retired or a family pensioner. Each person will have to submit the given documents:

1. A copy of the PAN Card
2. 2 passport-size photographs
3. A duly filled loan application form
4. One valid identity and age verification document, such as a:
   • Passport
   • Voter Identity Card
   • Driving License
   • Aadhaar Card
5. One valid address verification document, such as:
   • Utility Bills
   • Passport
   • Voter ID
   • Ration Card
   • Bank account statement
   • Driving license
   • Aadhaar card
   • Property rental agreement/purchase agreement, sale deed
6. Pension payment order as an income proof document

Conclusion

Pensions make life easier for retirees, but emergencies can happen at any time, even after retirement. A pension may not be enough to cover an urgent need for money. Pensioners can feel safe taking out a personal loan in some situations. Even for older adults and pensioners, many lenders give quick personal loans. The terms and conditions may vary.

Families can handle their financial difficulties with the help of personal loans for senior citizens. Make sure to review the lender’s terms and conditions. Check the EMI and personal loan eligibility calculators. It can help to find out the total loan amount. Get more information at Piramal.