It was a pleasant morning that day when I decided to go for a walk; it had been almost twenty years then since I left my home town. I had settled in the city 500 kilometers away from my village. I had always dreamt of living in my village for the rest of my life after retirement. I decided to build a house in my father’s land.
I planned to get a home loan but as it would take many years to repay the loan, I decided to take pension loan. Pension loans are meant especially for retirees or for pensioners where their future pension payments will be considered as security for the loan. Pension loans allowed me to borrow a huge amount as a lump sum and repay it later from my pension payment. It helped me build the house; pension loan is very helpful for those who are in need for cash in the short term.
The funding institutions will get an agreement signed from the borrower which will assign the lender to collect the pension of the borrower rather than the retiree doing it. The borrower must have some other source of income other than the pension to be eligible for the pension loan.