PNB Personal Loan Scheme for Pensioners

Particular	Details
Scheme Name	Personal Loan Scheme for Pensioners
Objective	To provide financial assistance to the public drawing pension through PNB
Purpose	Personal needs, including medical expenses
Eligible Borrowers	All types of pensioners drawing pension through PNB branches
Minimum Loan Amount	₹25,000
Maximum Loan Amount	Depends on age and pension amount
Margin	Nil
Security	Guarantee of eligible spouse / earning children / acceptable third party
Maximum Repayment	60 EMIs, subject to age limit
Pensioners Above 75 Years	Maximum 24 EMIs
Prepayment Charges	Nil
Processing/Upfront Fee	Nil
Documentation Charges	₹500 + GST
Interest Rate	RLLR + BSP + 2.50% for Term Loan/Demand Loan/OD; current floating rate shown by PNB is 10.60% p.a.

Category	Eligibility
General Pensioners	Eligible if pension is being drawn through PNB
Family Pensioners	Included
PNB Retired Employees	Included
PNB Pre-1986 Retirees receiving ex-gratia	Included
Pensioners through DPDOs	Included
Central/State Government Pensioners	Included where pension is received through the prescribed PNB arrangement
Minimum Age	No separate minimum age specified on the scheme page
Maximum Age	Loan terms vary depending on whether borrower is up to 70, 70–75, or above 75 years

The maximum loan is determined by both the pensioner’s age and net monthly pension.

Age of Pensioner	Public Pensioner	Defence Pensioner
Up to 70 years	Lower of ₹10 lakh or 18 × Net Monthly Pension	Lower of ₹10 lakh or 20 × Net Monthly Pension
Above 70 years and up to 75 years	Lower of ₹7.50 lakh or 18 × Net Monthly Pension	Lower of ₹7.50 lakh or 20 × Net Monthly Pension
Above 75 years	Lower of ₹5 lakh or 12 × monthly pension	The official scheme page does not separately state a higher multiplier for this age band
Minimum Loan	₹25,000	₹25,000

Suppose a pensioner is 65 years old and receives a net monthly pension of ₹40,000.

For a general pensioner:

18 × ₹40,000 = ₹7,20,000

Therefore, the maximum loan based on the above formula would be ₹7.20 lakh, subject to the bank’s other conditions and deduction limits.

For a defence pensioner:

20 × ₹40,000 = ₹8,00,000

Therefore, the maximum would be ₹8 lakh, subject to the applicable conditions.

Particular	Requirement
Borrower’s Contribution/Margin	Nil

PNB specifies the following security options:

Security Option	Requirement
Spouse Guarantee	Guarantee of spouse who is eligible for family pension
Earning Children	Guarantee of earning children, preferably a Government employee
Third-Party Guarantee	Acceptable third-party guarantee with net means equal to or greater than the loan amount
Collateral	The scheme page specifies guarantee requirements rather than a separate collateral-security requirement

PNB’s FAQ states that pensioners can avail the facility through the following modes:

Facility	Available
Demand Loan	Yes
Term Loan	Yes
Current Overdraft Account	Yes
OD Basis	Monthly reducing Drawing Power basis

Borrower	Maximum Repayment
Pensioner up to 75 years	Maximum 60 EMIs or up to age 78, whichever is earlier
Pensioner above 75 years	Maximum 24 EMIs
Overdraft	Maximum 60 months or up to age 78, whichever is earlier
OD for >75 years	Maximum 24 months

PNB’s current published interest-rate table states: