Home Finance Are Personal Loans Safe for Retirees in India?

Are Personal Loans Safe for Retirees in India?

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Every age has its charm, so is old age. It’s a common myth to dread old age as it brings retirement along with it for most, where managing your expenses becomes a Herculean task. However, proper planning, and a little bit of sensible thinking, can sail you through and make you enjoy the dusk of your life with confidence and self-respect. 

The most basic financial needs that retirees have to handle are their medical bills, managing their monthly expenses, or financing their grandchild’s education. For any of the above, senior citizens can avail of personal loans without being dependent on anyone. 

Personal Loans For Retirees In India

  • Personal Loans for Senior Citizens:

Personal loans for senior citizens are eligible for those who are above the age of 60 years. There is not much difference between personal loans granted to the younger ones and seniors, except for the difference in interest rates charged and the fulfilling requirements by banks and other financial institutions. Senior citizens can make an online personal loan application and enjoy the facilities, provided their other documents and essentials are in place. 

  • Prerequisites For Personal Loans Granted To Senior Citizens

Personal loan requirements for senior citizens are stricter than other individuals. One of the primary prerequisites is having a pension or a regular stream of income. Other essential elements are:

  • Regular pension proof.
  • Proof of remittance from their children, working locally or abroad.
  • Identity proof.
  • Proof of any other source of income.

It should be noted that these are not the only documents that may be required when applying a personal loan eligibility calculator for senior citizens; it would differ from lender to lender.

Collateral may be required in case someone does not have a pension. However, in the absence of both, the loan application may not get approved. 

Advantages of Personal Loans for Senior Citizens

Availing of a personal loan can be quite advantageous for senior citizens in the following aspects.

  1. Access To Instant Cash:

If you are in dire need of instant cash and you have all your required paperwork in place, your online personal loan application will get approved immediately, and you can get access to instant cash without hassles. 

  1. Leniency:

Lenders are lenient in granting loans to senior citizens provided they have all the requirements needed like if they have a regular pension, it can secure approval from the lender. 

  1. Easy to Apply:

Unlike big business loans, home loans, or car loans, personal loans are easy to apply, like salary loans, and can render high amounts, unlike the latter. 

  1. Easy To Pay Off:

Personal loans are easy to pay, and you can choose from various options regarding the payment schedule and the mode of payment, as per your convenience and suitability. 

Downsides Of Personal Loans For Senior Citizens

Like the two sides of a coin, personal loans for senior citizens come with certain drawbacks too. They are:

  1. Higher Interest Rates:

Personal loans are easy to procure and come without collateral, and hence they come with a high-interest rate. 

  1. Can Prove Difficult To Get:

For senior citizens, getting a personal loan comes with stricter guidelines. Hence, if you do not have the required papers in place, it might be extremely difficult for you to get your way through. 

  1. Might Get Difficult To Repay:

Personal loans need to be paid as agreed upon, and in the absence of a regular source of income, it might be difficult to pay the dues on the stipulated deadlines. This can cause unnecessary complications, especially for senior citizens.

Final Take

Personal loans undoubtedly act as life saviors in difficult situations for senior citizens too. However, before applying for one, you need to ask yourself certain questions like whether you need it or not, would you have enough resources to repay it later, and do you have other outstanding loan liabilities. Having weighed the pros and cons sensibly, check the personal loan eligibility calculator to ascertain your total financial health status and then plunge into a new personal loan if required.