SBI Pension Loan

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SBI Pension Loan Highlights
Interest rates	11.35% p.a. onwards
Loan amount	Based on the monthly pension drawn by the applicant
Repayment tenure	SBI Pension Loan: 6 years
	Insta Pension Loan scheme through YONO: 3 years
Processing fee	0.50% of the loan amount + applicable taxes (Minimum Rs. 250)

Note: Interest rates as on 19 September 2024

SBI Pension Loan Interest Rate

Pension Loan Schemes	Rate of Interest (p.a.)
SBI Pension Loan	11.30%
Jai Jawan Pension Loan	11.30%
Pension Loan Scheme For Treasury & PSU Pensioners	11.30% – 11.80%
Pre-Approved Pension Loans(PAPNL)	11.30%
Pre-approved Insta Pension Top-Up	11.30%

Loan amount for SBI Pension Loan

The loan amount would depend on the Net Monthly Pension (NMP) of the loan applicant provided that the EMI/NMP ratio does not exceed 33% for the family pensioners and 50% in case of other pensioners.

SBI Pension Loan Eligibility Criteria

For Central and State Government Pensioners:

• The pensioner should be below 76 years of age.
• Pension payment order should be maintained with SBI.
• The pensioner should furnish an irrevocable undertaking not to amend his mandate to the Treasury during the tenure of the loan.
• The Treasury has to give consent in writing that it will not accept any request from the pensioner to transfer his pension payment to any other bank till an NOC is issued
• All other terms and conditions of the Scheme will be applicable, including guarantee by the spouse (eligible for family pension) or by a suitable third party.

For Defence pensioners:

• Pensioners of Armed Forces, including Army, Navy and Air Force, Paramilitary Forces (CRPF, CISF, BSF, ITBP, etc.), Coast Guards, Rashtriya Rifles and Assam Rifles.
• Pension payment order is maintained with SBI.
• No minimum age bar under the scheme.
• Maximum age at the time of processing the loan should be less than 76 years.

For family pensioners:

• Family pensioners include authorised members of the family to receive pension after the death of the pensioner.
• Family pensioners should not be more than 76 years of age.

SBI Pension Loan Documents Required

While SBI has not clearly stated the documents required for availing pension loan, the documentation, if any, should be minimal as the bank would already have most of the required documents due to the KYC of the pension account maintained with the bank.

SBI Pension Loan Fees and Charges

Processing fee

State Bank of India charges a processing fee  of 0.50% of the Loan amount + applicable taxes (Minimum Rs. 250) for SBI Pension Loan.

Prepayment/Foreclosure Charges

Prepayment charges	3% on prepaid amount
Foreclosure charges (if the account is closed from the proceeds of a new loan account under SBI Pension Loan)	NIL

 Other fees and charges

EMI/NMP Ratio (Family Pensioners)	Up to 33%
EMI/NMP Ratio (other pensioners)	Up to 50%
Collected for payment to empaneled Advocate for Legal opinion/Search Report etc	As per actuals
Any other fee, if any	As per actuals