Retired bank personnel (or pensioners) require money for meeting basic necessities during their golden years. Bank employees especially from government organizations make some kind of investments during their working career so that they get sufficient corpus in order to meet basic necessities. In addition to this, many individuals receive pension after their retirement. However the corpus may not be sufficient if any emergency arises. Either they will have to use their personal savings or ask money to their children or acquaintances. In such situations, personal loan for bank employee is a good alternative to get money and meet the necessities. However any lender would first ask for income to evaluate credit worthiness and calculate loan amount that can be granted. Assuming post retirement, individual does not have income getting a loan is difficult and also the age factor can create hindrance. Most banks have a maximum age limit which is typically 60 years. So how can bank employee get personal loan? There are many banks offering personal loan to pensioners (i.e. who are drawing pension from the banks where they were working). This also includes retired bank employees. The table below also shows age limit and loan quantum of the pension holder.

Name of Bank or Financier	Age Limit (at the date of maturity of the loan)	Maximum Loan Amount	Repayment Term
Union Bank of India	Above 70 years allowed	2 lakh	3 Years
Canara Bank	Above 65 years allowed	4 lakh	5 years
Syndicate Bank	Over 70 years	1.50 lakh	6 years
Indian Bank	78 years	6 lakh	5 years
Andhra Bank	NA	4 months pension	5 years
Bank of India	Above 75 years allowed	1 lakh	5 years
Allahabad Bank	Above 65 years allowed	1 lakh	4 years
Punjab National Bank	Above 75 years allowed	7.50 lakh	2 years
Dena Bank	Max. 80 years	1.50 lakh	3 Years
Oriental Bank of Commerce	Max. 75 years	5 lakh	NA
Central Bank of India	Above 75 years allowed	2 lakh	NA
United Bank	Max. 75 years	10 Lakh	NA
Tamilnad Mercantile Bank	NA	Upto 95% of one month pension	NA
Bank of Maharashtra	Upto 73 years	3 lakh	5 years
IDBI Bank	75 years	5 lakh	5 years
Vijaya Bank	Max. 72 years	2 lakh	5 years
South Indian Bank	Upto 55 years	25 lakh	15 years
UCO Bank	NA	4 lakh	3 Years
Corporation Bank	NA	Upto 10 months NET Pension	5 years

In the above table; age shows the maximum age on which loan matures.

Other options to get loan are:

Personal loan against fixed deposit: If retired bank personnel has fixed deposit account in the bank then he/she can get personal loan against FD. The quantum of the loan amount is typically 80%-85% of the amount kept in the account. The biggest benefit is that interest rate is low. Against securities: Personal loan against mutual fund, gold, shares, insurance policy is another cheaper option to get loan. Borrower will have to pledge any of these assets with the lender and get loan against it. Since this is a secured loan, the interest rate is low. Peer to peer lenders: Another emerging option to get loan is from peer to peer lending (P2PL) companies. Their eligibility criteria are different than banks.

Features of personal loan given to pensioners (including bank employees):

• No processing fee by most of the banks
• Loan amount is small since risk is high for the lender
• Loan can be used for any purpose
• Age criteria is relaxed compared to private banks such as ICICI, HDFC and others who have strict limitation
• Not all banks ask for guarantor or security

From where should bank employee get personal loan?

Bank staff should keep in mind that more the money saved in their golden years, better would be the life. So first thing to do in order to meet emergency requirement is use own saving as much as possible and then take personal loan for the remaining amount required. Always go for low interest loan. One way is to get personal loan against fixed deposit or securities. These loans are offered at lower interest rate compared to traditionally applied loans.

Author Bio:

Hi, I am Nikesh Mehta owner and writer of this site.

I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business.

I can be reached at nikeshmehta@allonmoney.com. You may also visit my LinkedIn profile.