India, as a country, does not provide adequate retirement benefits to pensioners. So much so that India’s pension system was ranked 28 out of 30 countries participating in a survey. For this reason, the demand for advances among pensioners in India is quite high.
Nowadays, there are several financial institutions that offer advances like pensioners loan. These loans come with several customised benefits like competitive interest rates, flexible tenure, etc. and can be utilised to meet numerous monetary requirements.
What Is A Loan For A Pensioner?
A loan against property for retired individuals is the advance that retired individuals drawing regular pensions can avail from financial institutions in India. This loan can be used to cover any financial emergencies, including medical costs, to renovate a property, investing in property construction, etc.
Pensioners can avail the credits against collateral and utilise it to meet any high end expense.
Eligibility Criteria for Pensioners
For retired individuals to avail a loan against property, they will have to comply with the following eligibility criteria –
- They should be less than 70 years of age.
- Individuals should be drawing regular pensions.
- They should be a resident of India and residing in any of the cities listed by the financial institution.
Features Of Loan Against Property For Pensioners –
- High loan value
Pensioners can avail a high loan amount value of up to Rs. 3.5 Crore from financial institutions like Bajaj Finserv. Additionally, the NBFC also provides pre-approved offers that can make availing loans faster and easier. These offers are available on several financial products, including home loans, business loans, personal loans, etc.
- Flexible Tenure
This advance comes with a flexible tenure, which makes it considerably easier for pensioners to repay the amount. You can avail a tenure of up to 18 years to repay your loan. You can also make use of an online EMI calculator to calculate your repayment amount before availing the loan to plan your future finances better.
- Easy disbursal
You may need to avail this pensioner loan for any emergency. That is why features like instant approval and easy disbursal of the loan can make it easier for you to meet your emergency financial needs.
- Easy to meet eligibility criteria
As mentioned above, the eligibility criteria to avail this loan are easy to meet for the benefit of its specific applicants. That is why most retired individuals can avail this loan for pensioner.
Types Of Property You Can Mortgage As Collateral To Avail This Loan
A loan against property can be availed to meet several high end financial needs. The amount you can avail depends on the value of the property you mortgage. Following are the types of properties you can mortgage as collateral for this advance.
- Self-occupied residential properties.
- Sometimes rented residential properties can also be mortgaged.
- You can mortgage a plot of land under your ownership.
- Commercial buildings like shops, office buildings, complexes, etc.
You can also check with your financial institutions to know the other types of properties you can mortgage as collateral to avail a loan against property.
Benefits Of The Loan Against Property
The benefits of loan against property for pensioners are as follows
- Since they have flexible tenure, you can opt for EMIs for your loan repayment.
- The loans are disbursed instantly and have the fastest approval rates.
- The loan against property comes at competitive interest rates, making repayment easier for retired individuals.
- You can enjoy prepayment and foreclosure facilities at no charges from various financial institutions.
What Can You Use The Loan Against Property For?
There are no restrictions when it comes to using this advance. Following are the few purposes for which you can use loan against property.
- Emergency medical issues and healthcare.
- Down payment for any of your other high end purchase.
- Paying for higher education for anyone in your family.
- Paying for the wedding expenses for any of your family members.
- Debt consolidation.
Thus, for a pensioner, a loan against property can be an answer to meet any of their financial needs. However, before applying you should check the documents you need to submit and must have to know how to improve credit score if you have low credit score to avail the loan to avoid any hassle in the application process.