Purpose: This demand loan finances pensioners for their personal expenses.
Eligibility: Pensioners of all Central, State governments and PSUs whose pension accounts are maintained with the bank are eligible for this personal loan. Family pensioners having accounts with the bank (i.e., spouse who is authorized to receive pension after the death of the pensioner) can also avail this loan. Age of the pensioner and family pensioner should not be more than 70 and 65 years respectively
Quantum of Loan: A maximum of 12 months net pension amount not exceeding of Rs.75, 000/- is granted as loan for pensioners. In case of a family pensioner a maximum of 9 months net pension amount or Rs.50, 000/ whichever is less is granted as loan. The EMI should not exceed 25% of the net monthly pension.
Repayment: The repayment has to be done within a maximum of 60 Equated Monthly Installments commencing from one month after disbursal of loan.
Security: There is no primary security.
Collateral Security: In case of pensioner, the family member eligible for family pension is the co-obligant. In case of family pensioners, son/daughter of the family pensioner is co-obligant
Third party guarantees of two individuals who have been maintaining a satisfactorily conducted account with the bank is also required.