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Home » “Golden Years, Golden Keys: Here with special reference to home loans suitable for pensioners.

“Golden Years, Golden Keys: Here with special reference to home loans suitable for pensioners.

INTRODUCTION

As they exit the workplace, many people expect to take it easy and reap what they had sowed throughout the years. Nonetheless, the desire to own a home is still alive for most of the pensioners. Contrary to this belief, one might get a home loan as a pensioner is not as difficult if and only if one has adequate information about the procedure.

Understanding the Basics

Like any other applicants, pensioners require to fulfill certain conditions to obtain a home loan. Some of the fundamental aspects include income, credit status, and credit score as well as debt to income. However, pensioner may experience one form of challenge or the other because of their age and their regular income.

Types of Home Loans Available

  • Home Loans: These are the standard loans where the given property is used as security for the agreed loans.
  • Reverse Mortgages: This option allows the homeowner to convert a portion of the home equity into cash without necessarily selling the house.
  • Line of Credit Home Loans: These is credit arrangements that make funds available whenever required up to a certain extent.

Government Scheme and Support

Several government schemes can assist pensioners in securing a home loan:

Pradhan Mantri Awas Yojana (PMAY): This particular plan provides subsidies on interest for those who qualify, keeping home loans cheap.

Senior Citizens Savings Scheme (SCSS): Although not a home loan the scheme offers Fixed Deposits is a pretty safe investment which gives interest which could possibly act as another source of income.

Options for Loans / Banks / NBFCs

Banks /Nbfc R.O.I Processing Fees Loan

Amount

Cibil Score Apply Now
Bank of India Home Loan 8.6% – 10.75% (Reducing Per Annumn) 0.5% – Rs.10000 10.00 Lacs and above 675 or above https://referloan.in/loans/bank-of-india-home-loan
Canara Bank Home Loan 9.35% – 13.8% (Reducing Per Annumn) 0% – 0% 10.00 Lacs and above 675 or above https://referloan.in/loans/canara-bank-home-loan
Shri Ram Housing Finance Home Loan 11.6% – 13% (Reducing Per Annumn) 0% – 0.25% 10.00 Lacs and above 675 or above https://referloan.in/loans/bank-of-india-home-loan
Piramal Finance Home Loan 10.6% – 14% (Reducing Per Annumn) 1% – 1.5% 30.00 Lacs – 5.00 cr 650 or above https://referloan.in/loans/piramal-finance-home-loan
Federal Bank Home Loan 8.6% – 10% (Reducing Per Annumn) 1% – 1.5% 25.00 Lacs – 5.00 cr 650 or above https://referloan.in/loans/federal-bank-home-loan
SBI Bank Home Loan 8.6% – 10.4% (Reducing Per Annumn) 0.2% – 0.5% 5.00 Lacs – 75.00 cr 650 or above https://referloan.in/loans/sbi-home-loan
PNB Housing Home Loan 8.75% – 14% (Reducing Per Annumn) 0.25% – 0.5% 5.00 Lacs – 20.00 cr 625 or above https://referloan.in/loans/pnb-hfl-loan-home-loan
Bank of Maharashtra Home Loan 11.5% – 13% (Reducing Per Annumn) 1% – 1.25% 10.00 Lacs – 1.00 cr 650 or above https://referloan.in/loans/shri-ram-housing-finance-home-loan
Indian Bank Home loans 8.6% – 10.4% (Reducing Per Annumn) 0.25% – Rs.500000 5.00 Lacs – 75.00 Lacs 675 or above https://referloan.in/loans/indian-bank-home-loan
Mahindra Finance Home Loan 9% – 15% (Reducing Per Annumn) 1% – 3% 3.00 Lacs – 75.00 Lacs 650 or above https://referloan.in/loans/mahindra-finance-home-loan
Union Bank of India Home Loan 8.6% – 10.8% (Reducing Per Annumn) 0% – Rs.15000 10.00 Lacs – 1.50 cr 650 or above https://referloan.in/loans/ubi-home-loan
Central Bank of India Home Loan 8.6% – 10.4% (Reducing Per Annumn) 0% – Rs.20000 10.00 Lacs and above 700 or above https://referloan.in/loans/central-bank-home-loan

 

General Eligibility and Document Required for This Type of Loan

Eligibility

  • Employment: One has to be a career civil servant.
  • Income: pension This will help to determine your pension as your main source of income.It is also important to note that a lender may also consider some other sources of income like rental income or investment.
  • Income Ratio: This ratio compares your daily or monthly liabilities with your daily or monthly earnings. A lower ratio is preferable.

Documents Required:

  • Proof of Identity: PAN card, Aadhaar card.
  • Address Proof: any utility bill or rent agreement.
  • Business Proof: Registration certificate, the business license.
  • Bank Statements, Bank Statement, Income Tax Return and Profit Loss A/c

How Referloan Can Help 

 ReferLoan is among the rapidly advancing businesses of the Indian nation. It serves all sorts of financial needs through banking and non-banking segments where it interconnects the clients as per the need.

This is how ReferLoan can help!

  • Loan Options: ReferLoan appreciates that government employees operate under different financial needs and provides them with lenders with special home loan offers. This way they get the best interest rates and mode of payments due to the highly stable income that working in a particular organization provides.
  • Exclusive Offers: ReferLoan collaborates with a range of banks and other financial providers involved by providing special privileges to employees of the government.
  • End-to-End Support: ReferLoan offers detailed help from decision-making of a suitable home loan plan to documentation process and everything in between. This assist government employees to find the best loan solution in the shortest time possible.
  • Fast Approval Process: Since ReferLoan has established itself, government employees will be able to get a loan approval and disbursement faster, and thus ease their journey to homeownership.
  • Expert Guidance: The team at ReferLoan provides guidance and recommendations regarding financial expenses – especially to the different government employees. No matter it is about loan approval criteria or working out the interest rates.

Frequently Questions

Is it possible for pensioners to apply for home loan?

pensioners can also avail home loans but norms for pensioners may differ from that of the salaried or self-employed persons.

What is the age barrier that the pensioner need to meet in order to qualify for a home loan?

Again, the lending age is determined arbitrary from one lender to the other; nevertheless, pensioners can borrow up to the age of seventy but the duration of a loan is extended.

What remains unclear is how the loan tenure is decided for pensioners?

The tenure is shorter than the normal loan period and is likely to be determined by the age, pension pay, etc of the applicant and the capacity of repaying the loan amount within a short period.

Which of the following income streams are considered while availing pensioner loans for homes?

Pension income and rental income, fixed deposits and any other investments could be used when determining the ability to repay in pensioners.

Is a guarantor or co-applicant required while availing home loan for pensioner?

It has been observed that to reduce the risk some of the lenders might demand guarantor/younger co-applicant like family member if the age of pensioner is near to cut off limit

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