Personal loans for senior citizens: Check details here

Personal loan is a convenient tool to tackle financial emergencies. It is an unsecured loan, and, therefore, the lender does not need any collateral. The processing time and disbursal of a personal loan is quicker than other loans. But the interest rate is higher than a secured loan. In general, most banks and non-banking financial companies (NBFCs) offer personal loans to people in the age group between 23 to 60 years. But a few financial instructions also offer these types of loans to senior citizens who are above 60. There is no big difference between personal loans for younger ones and seniors. However, it may differ on the conditions and the charges and fees charged.

Eligibility

The income of a senior citizen plays a crucial role in deciding whether he or she is eligible for a personal loan or not. Lenders generally do not offer personal loans to people above the age of 60 years who do not have regular income. However, some lenders in India offer personal loans to pensioners. Even if you do not receive a pension, it can still be possible for you to get a personal loan against a collateral.

Loan amount

According to market experts, some financial institutions and banks approve personal loans to pensioners up to 12 to 15 times their pension. Borrowers can take the benefit of EMI options to repay their loan. Once the loan is taken, the EMI may be directly debited from their monthly pension or other source of income.

Required documents

Before the approval of personal loans to senior citizens, lenders might ask for additional requirements. These documents include:

— Proof of regular pension document of applicant

— Proof of income if you have

— Valid identity cards

Personal loan against collateral

Collateral means the security one pledges to one’s lender against a loan. In general, there is no need for any collateral for personal loans. But in case of senior citizens when he or she does not receive a pension, the lender could ask for collateral before approving personal loan. Many of the financial institutions offer this facility. If you don’t have a pension, having a collateral will lead to faster sanctioning of the loan.

Fee and charges

Personal loans come with higher interest rates. Financial institutions generally offer preferential interest rates to senior citizens on personal loans. Even a few lenders do not charge any loan processing fee on personal loans for senior citizens.