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4 Things Pensioners Need to Ask before Applying for a Mortgage Loan

by Alisha Antil Financial Blogger
According to the 2011 census, at present, India harbors over 104 million senior citizens and by 2026, this number is predicted to grow to about 173 million. Thus, it is essential that any financial initiative by the Government also takes into consideration the requirements of the senior citizens. Thanks to various NBFCs, several schemes like pensioners’ loans are now available which cater to the financial necessity of senior citizens. 

Their deteriorating health conditions and their retirement act as hurdles for investments in sectors like housing or property purchase. Under such circumstances, pensioners loan is their best go-to alternative since it provides multiple beneficial features targeted, especially at the pensioners.

Such loan for pensioners comes with many borrower-friendly properties and attractive interest rates. However, senior citizens now have numerous credits to choose from owing to competition among leading financial institutions. This makes it crucial for senior borrowers to ask a few vital questions before applying for such mortgage loans.



1.) What is the loan against property eligibility criteria?

Purchasing a residential property involves a substantial expenditure, thanks to the evolution in the real estate industry. Additionally, lenders consider an applicant’s ability to generate income before they avail a loan. Senior citizens are retired or at least close to the retirement and therefore do not score high from the income generation perspective.

Senior citizens who are employed can opt for Loans Against Property in India from leading financial institutions such as Bajaj Finserv. They offer loans for both salaried and self-employed borrowers against easy-to-meet eligibility criteria such as –

  • Age: Any applicant under 70 years of age.
  • Occupation: A salaried employee in a private company, MNC, or public sector; or a self-employed individual with a steady source of income.
  • Residence: He/she should be a resident or should own a property in any of the cities specified by the lenders.

Such minimal eligibility criteria allow quick approval and hassle-free disbursal of the loan against property amount.

2.) What are the documents required for pensioners loans?

The loan against property documents required by leading NBFCs have been kept to a minimum keeping in mind the convenience of the senior citizens –

  • Address Proof
  • KYC documents
  • IT returns
  • Bank account statement of the last 3 months
  • Copies of documents of the mortgaged property 
  • Latest salary slip

3.) What are the features of the loan?

Senior borrowers should always opt for the credits, which come with a lucrative loan against property features like –

  • High-value credit amount of up to Rs. 3.5 Crore for self-employed borrowers and Rs. 1 Crore for salaried individuals.
  • A flexible loan against property tenors ranging up to 20 years.

Also, borrowers with CIBIL score of 750 or above can avail a high LTV loan as they are rated as creditworthy individuals. Bajaj Finserv offers high-value loans to applicants with such credit scores against minimal documentation.
They also provide pre-approved offers on these loans as well as on home loans, business loans, personal loans, and several such financial products. All that you need to do is provide a few essential details to check your pre-approved offer. These offers not only to save your time but also ease the application process to avail finances.

4.) What is the EMI of the availed loan?

The EMI to be paid for such loans for pensioners should be planned properly to avoid missed payments. It is mandatory to use an EMI calculator beforehand and plan the finances accordingly. Doing so will help one make an informed decision about the tenor and hence the EMIs. It ensures that no unforeseen or unnecessary stress is put on the monthly expenditure of an individual.

Apart from the above, borrowers also need to be informed about the choice between floating interest rates vs fixed interest rate. With the best choice in interest rates, substantial credit amount, lucrative features, a hassle-free application process and doorstep services, senior borrowers now have the best pensioners’ loans available to assist them in their purchase of residential properties.


About Alisha Antil Advanced   Financial Blogger

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Joined APSense since, July 4th, 2018, From New Delhi, India.

Created on May 24th 2019 01:37. Viewed 167 times.

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