Personal loans are one of the best lending arrangements that act as a savior during any financial exigency. Their unrestricted end-use widens its reach to a larger section of society that relies on personal loans to meet their emergency fund requirements. As these are granted primarily based on the profile of the borrower, therefore, a pertinent question comes to mind- can senior citizens get access to personal loans?
Senior citizens with a stable source of income are eligible for personal loans.
What Is Considered As Income for Senior Citizens?
Senior citizens accruing income from the following sources are eligible for personal loans:
- Pension income from the Central Government, State Government, or any government recognized body
- Payments received from the previous employer being a private company
- Withdrawal of any amount from a deceased spouse or any family member
Features of Personal Loans
If you are looking towards applying for a personal loan shortly, keep the following points in mind before applying for the same.
- Affordable Interest Rate: While being affordable loans, especially when compared to other lending arrangements like credit cards, the personal loans interest rates for senior citizens are not fixed and vary depending upon the CIBIL score, applicant’s age, and the policies of the lender.
- Unsecured Loan: Personal loans, being unsecured, require no security. This comes as a relief to the borrowers, especially the senior citizens, as no one would like to keep their property as collateral during such crucial years of life.
- Flexible Tenure: Personal loan offers flexible tenure to borrowers ranging from 12 months to 60 months. Thus, if you want to reduce your EMI burden, you can opt for a longer tenure.
- End-Use: It can be availed for any purpose like meeting medical emergencies, purchasing anything, education, marriage, travel, etc. Thus, they become instrumental for senior citizens who are most vulnerable to chronic ailments and financial uncertainties.
- No prepayment charges: If you consider prepayment after six months of disbursal, a portion of the loan may be prepaid without worrying about any penalty or charges.
Personal Loan Eligibility Criteria
Personal loan eligibility criteria are easy to fulfill. The age criteria are primarily done away with for senior citizens, and if the senior citizen draws a monthly pension or other income of at least Rs. 15,000, then they can fulfill the personal loan eligibility criteria. The documents required for loan applications are also minimal to avoid hefty paperwork for senior citizens. These include:
- Photo ID proof
- Address proof
- Income proof
Personal Loan EMI Calculator
If you are applying for a personal loan but want to know the EMI amount you would need to pay, then you can use the personal loan EMI calculator. You just need to enter the loan amount, personal loan interest rate, and tenure of the loan. This will give the exact idea of the amount that you will have to allocate from your monthly budget towards EMI repayment.
Financial exigencies may knock at the doors of the bank accounts of senior citizens anytime. In such cases, personal loans can come to their rescue. With flexible options and terms, they are structured to meet the needs and requirements of senior citizens so that they can live peacefully.