Personal Loan For Senior Citizens

Irrespective of their age, individuals have personal expenses they need to cover regularly. They may save an amount sufficient to cover daily and future expenses. However, a financial emergency can present itself abruptly, skewing the overall financial plan.

For senior citizens below the age of 76, such emergencies can prove to be highly burdensome and requires seeking external capital. Lenders have designed a specialised loan product directly for senior citizens and pensioners to ensure they have adequate funds.

Here’s everything you need to know about personal loans for senior citizens.

What are Personal Loans For Senior Citizens

Lenders offer personal loans through customised loan products targeted towards a specific community or group, such as government employees, self-employed, etc. One such specialised loan is a personal loan for senior citizens. The loan factors and terms cater to all the needs of senior citizens and individuals on a pension.

Senior citizens can avail of such a loan to pay for various personal expenses that may include paying for the marriage or education of their children, home renovation, vacation, etc. However, like other types of loans, a personal loan for senior citizens also charges interest. Thus, the individual must repay the principal amount with interest to the lender within the loan tenure.

Benefits of Personal Loans For Senior Citizens

Senior citizens or pensioners have capital needs different from salaried employees and other entities. In such cases, if a financial emergency arises, they may find themselves without adequate capital. To immediately cover emergency expenses, they may lose a large portion of their savings. Hence, such senior citizens look toward getting a personal loan for senior citizens to get the following benefits.

• Immediate Capital:

Personal loans targeted toward senior citizens provide quick capital through a simple and fast process. All they have to do is fill out an easy application form, the lender approves the loan within 5 minutes of submission, and they disburse the loan in the pensioner’s bank account within 24 hours.

• No Collateral:

In most cases, senior citizens or pensioners may lack a valuable asset to pledge as collateral to avail of a high loan amount. However, lenders have designed this loan product without collateral, allowing them to raise desired loan amount.

• Minimal Paperwork:

Senior citizens may miss submitting an extensive list of documents for availing of a personal loan. The loan targeted toward such individuals ensures that the application process requires minimal paperwork. It allows pensioners to get their loans approved without spending too much time on the KYC process, which can be complex.

• Interest Rate:

As senior citizens mostly live out of the pension amount, it may create a financial burden to repay a personal loan with a high-interest rate and a low tenure. The loans for senior citizens charge an attractive and affordable interest rate to ensure resulting flexible EMIs that the pensioners can pay through their pensions.

Eligibility Criteria For Taking A Personal Loan

Such loan products for senior citizens are unsecured and do not come with the need for collateral, increasing the loss risk for lenders in case the borrower defaults. Hence, lenders have set an eligibility criterion for senior citizens to ensure they can repay the loan amount without default.

1. For retired Central and State Government Employees

• Should be below the age of 76 years.
• Should be drawing pensions through a government treasury.

2. For Defense Pensioners

• Should be below the age of 76 years.
• Should be a past employee of the Navy, Air Force, Army, Rashtriya Rifles, Paramilitary, Assam Rifles, and Coast Guards.

3. Family Pensioners

• Should have a spouse legally authorised to receive the pension after the current pensioner’s death.
• The current pensioner should be below the age of 76.

Documents Required For Senior Citizens To Avail Of The Personal Loan

Here are the documents required for senior citizens or pensioners to get their loan applications approved:

• Selfie:

The selfie of the applicant as photo proof.

• PAN Card:

The valid PAN Card of the applicant as ID proof.

• Aadhaar Card:

Applicant’s Aadhaar card or driving license for address proof.

• Pension Proof:

Pension proof for pensioners/ Proof of business existence for self-employed individuals.

• Bank Statements:

Bank statements of the applicant for the last 6-12 months for creditworthiness.

• e-Sign:

e-Sign or e-Stamp for quick personal loan disbursal.

Avail of an Ideal Personal Loan For Senior Citizens From IIFL Finance

IIFL Finance provides comprehensive and customised personal loans for senior citizens to fulfil all their capital needs. The personal loan offers instant funds up to Rs 5 lakh with a quick disbursal process. You can apply for the loan online or offline by visiting IIFL Finance nearest branch and verifying your KYC details.

FAQs:

Q.1: Can I take a loan for personal expenses from IIFL as a senior citizen?
Ans: Yes, you can take such a loan up to Rs 5 lakh from IIFL Finance, being a senior citizen.

Q.1: What is the interest rate on IIFL Finance personal loans targeted toward senior citizens?
Ans: The interest rate on IIFL Finance personal loan starts at 11.75%.

Q.2: What are the minimum and maximum loan tenure for IIFL Finance senior citizen personal loan?
Ans: The minimum loan tenure is 03 months, and the maximum is 42 months for IIFL Finance personal loan.