As a retired professional, paying EMIs on a personal loanmay seem like a hassle, even a possible liability! But the truth is, the loan can help you meet various financial goals. How? Read on. 

Why take a loan after retirement?

Life is unpredictable and financial emergencies can knock on your door anytime. But if you’re a retiree with limited income sources, any unexpected expense can burden your finances. At such times, a loan for personal use can come to your rescue.

Today, several lenders recognise the need for financial support and provide personal loans for retired people at affordable interest rates and convenient terms.

Not convinced? Here’s why you should take a loan after retirement.

Additional Read – Rules to Follow When Taking a Personal Loan

1. Multipurpose

When you apply for personal finance, there are no restrictions on  use of funds. You can use the amount to take care of any medical emergency, buy a vehicle, consolidate any previous date, give your home a makeover, or even take a foreign trip. The funds will be available for various purposes without any obligations.

2. Affordable interest rates

Most lenders usually offer affordable personal loan interest rates to retirees. But the interest rate may vary depending upon your age, income, and lender. For instance, some lenders have different loan rates for different age groups after retirement. Moreover, senior citizens can also avail of a loan without offering any security. Thus, making it a reliable alternative.

3. Minimal paperwork

Now with the loan process being carried out online, the application process is simpler than ever. Here, you are only required to submit your ID proof, address proof, and income statements. If you’re a pensioner, you will also have to submit your bank statements as proof of regular pension. 

However, if you apply with a lender you have an existing relationship with, the documentation and loan approval process will be even faster.

4. Eligibility criteria

Lenders have flexible personal loan eligibility criteria to ensure retirees have easy access to funds. Today, you can get a loan amount of up to 12-15 times your monthly pension. So, your financial stability and income source will play a key role in determining the loan amount you’ll get.

5. Flexible tenure

Personal finance options also come with a flexible repayment tenure. Typically, the loan tenure ranges from 1-5 years but can vary from one lender to another. It can also depend upon the age of the borrower. Furthermore, if you set up a SI, your EMI amount can be directly deducted from your monthly pension and can be calculated using a personal loan emi calculator. Thus, offering you maximum convenience.

Additional Read – Can Senior Citizens Apply for Personal Loan in India?

To sum up

Want to apply for a personal loan for senior citizens?Then get in touch with Tata Capital!

With our tailored finance offerings, you can get a loan amount of up to Rs. 25 lakhs at an extended tenure of 6 years. Moreover, we offer attractive interest rates and an overdraft facility without the need for collateral. Now, meet all your financial needs with ease even after retirement.

Contact us to know more.

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