Loan Tips: What should senior citizens do if they need a loan? These 4 options can be 'troubleshooters'...
Senior citizens do not have any solid source of income, so after the age of 60, banks avoid giving loans credit cards, etc. to senior citizens. But suppose a situation arises in front of the elderly that they need money very much and are not able to get any work done from anywhere, then what will they do? From where will they fulfill their need for money? Here know about some such loan options that can become 'troubleshooters' for senior citizens in such difficult times.
Pension Loan Scheme
If an elderly person gets a pension after retirement, then he has the option of taking a loan from the bank. Loan options are available for pensioners in all banks including PNB, and SBI. The pension scheme for the elderly is run in the name of 'Personal Loan Scheme For Pensioners' in PNB and State Bank of India Pension Loan Scheme in SBI. This loan given in the name of a pension loan is a kind of personal loan, that can be used according to their need. People up to 75 years of age are eligible for this. However, some other conditions are also attached to it.
Gold loan
Gold is a property along with being a jewel. If you suddenly need money, you can take a loan by pledging the gold deposited with you. Gold loans are cheaper than personal loans, property loans, and corporate loans. The loan amount is given according to the value of your gold. Credit score etc. does not matter much in this. Usually, people between the ages of 18 years to 75 years get gold loans easily.
Loan on FD
Most of the elderly do invest in FD. If senior citizens want to take loans on FD, they can. This is also a secured loan which depends on the amount of FD. Usually, you get 90 to 95 percent of the FD amount as a loan. While taking this, the bank mortgages your FD as security/guarantee. Usually, this loan is cheaper than a personal loan. In this, generally, 1% to 2% more interest is charged than the interest rate of FD.
You can also take a loan from NBFC.
If you are not able to get a loan from the bank, then you can take a loan from NBFC. Even if your credit score is low and you are older, NBFC still gives loans. However, they charge more interest than the bank.