Post retirement or when retirement is nearing the fear of managing cash flow during sunset year starts. Many people believe that the money accumulated during their working life is sufficient. However it is a mistake. What such individuals don’t consider is the inflation, rising healthcare costs, increasing life span and at the same time protect dependents.

So in case of emergency when own savings is not sufficient to fulfill the need, the option remains is the personal loan. However getting personal loan for senior or retired individual is not easy as it is for a working professional. Let’s understand the reasons behind this.

Personal loan approval is dependent on four most important factors which are as follows:

• Income
• CIBIL score
• Age
• Loan amount

Other factors also play a major role but above mentioned factors holds most importance.

A regular income earner has higher chance of meeting these eligibility criteria. However for a senior or retired individual (with no income or pension), the chances of loan approval are very less as they don’t have an income post retirement. Age factor is also one of the reason for rejection, as most of the banks normally provide loan to individuals with maximum age of 60 years.

Read more on 7 best jobs to earn money after retirement.

So under such conditions, how can senior citizens get personal loan in India so that need of money can be met especially during emergencies?

There are many options available in the market for senior people to avail loan as shown in the table below:

Few details on getting loan from above entities:

State Bank of India: SBI offers loans to pensioners of central and state government with age limit set to 72 years with a loan amount of Rs. 14, 00,000 (14 Lakhs). However in this case the repayment tenure is small.

Allahabad Bank: Age of the pensioner should not exceed 73 years

Bank of India: BoI offers loans to pensioners with age less than 75 years.

IDBI Bank: Offers reverse mortgage loan for citizens above the age of 60 years.

Dena Bank: For pensioners with age not exceeding 73 years and 80 years.

Andhra Bank: Offers personal loans to individuals drawing pension in the branch.

Bank of Baroda: For individuals with age not exceeding 65 years.

Syndicate Bank: For pension account holder with the bank and age not exceeding 70 years.

Check out retirement investment tips.

Co-operative banks:

Many co-operative banks also offer loan to senior citizens. Few of them are:

• Aryapuram Bank
• Calicut city service co-operative bank
• Akola Janta co-operative bank

Personal loan against shares:

This is offered by many public and private sector banks in India such as HDFC bank, Axis bank, ICICI bank, and many others. Individuals including senior person can pledge shares from any depository with the bank and get finance. So there is a good chance to monetize assets.

Also see home loan for retired.

Against LIC policy:

Similar to loans against shares, many credit lenders also offer loans against money back or endowment life policies. Senior citizens can avail loan by pledging their policies. Few lenders are Aditya Birla Finance, Axis Bank, LIC housing finance, IDBI Bank.

Private lenders:

There are many private money lenders offering finance at high interest rate compared to banks. However you should be careful as it is an unregulated lending market even though getting a loan is hassle free and quick process. Private financiers should be the lost option.