SBI Pension Loan: Interest Rate, Eligibility, Documents, Fees and Charges

SBI Pension Loan starts from 11.05% pa for repayment terms of up to 6 years. The bank offers pension loans to central and state government, defence, Public Sector Undertakings (PSU) and family pensioners.


SBI Pension Loan Highlights 2023
Interest rates 11.05% pj and beyond
Loan amount Based on the monthly pension drawn by the applicant
Repayment term SBI Pension Loan: 6 years
Insta Pension Loan Scheme by YONO: 3 years
Processing tip 0.50% of the loan amount + applicable tax (Minimum Rs. 250)

Note : Interest rates from 2 January 2023

Apply online for a personal loan with minimal documentation 


  • Interest rate
  • Eligibility criteria
  • Documents required
  • Fees & Charges

SBI Pension Loan Interest Rate

Pension loan schemes Interest rate (p.a.)
SBI Pension Loan 11,05%
Jai Jawan Pensioenlening 11,05%
Pension Loan Scheme for Treasury and PSU Pensioners 11,05%-11,55%
Pre-Approved Pension Loans (PAPNL) 11,05%
Pre-approved Insta Pension Top-Up 11,05%

Loan amount for SBI Pension Loan

The loan amount will depend on the net monthly pension (NMP) of the loan applicant, provided the EMI/NMP ratio does not exceed 33% for the family pensioners and 50% in case of other pensioners.

SBI Pension Loan Eligibility Criteria

For Central and State Government Pensioners:

  • The pensioner must be younger than 76 years.
  • Pension payment order should be maintained with SBI.
  • The pensioner must give an irrevocable undertaking not to change his mandate to the Treasury during the term of the loan.
  • The Treasury must give permission in writing that it will not accept any request from the pensioner to transfer his pension payment to any other bank until an NOC is issued
  • All other terms and conditions of the Scheme will apply, including guarantee by the spouse (qualifies for family pension) or by a suitable third party.
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For Defense pensioners:

  • Pensioners of armed forces including Army, Navy and Air Force, Paramilitary Forces (CRPF, CISF, BSF, ITBP etc.), Coast Guards, Rashtriya Rifles and Assam Rifles.
  • Pension payment order is maintained at SBI.
  • No minimum age limit under the scheme.
  • Maximum age at the time of loan processing should be less than 76 years.

For family pensioners:

  • Family pensioners include authorized members of the family to receive pension after the death of the pensioner.
  • Family pensioners must not be more than 76 years old.

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SBI Pension Loan documents are required

Although SBI has not clearly outlined the documents required for availing pension loan, the documentation, if any, should be minimal as the bank would already have most of the required documents due to the KYC of the pension account registered with the banked.

SBI Pension Loan Fees and Charges

Processing tip

State Bank of India charges a processing fee of 0.50% of the loan amount + applicable tax (Minimum Rs. 250) for SBI Pension Loan.

Prepayment/closing fee

Prepayment charges 3% on prepaid amount
Foreclosure charges (if the account is closed from the proceeds of a new loan account under SBI Pension Loan) NiL

 Other fees and charges

EMI/NMP Ratio (Family Pensioners) Up to 33%
EMI/NMP ratio (other pensioners) Up to 50%
Collected for payment to paneled Counsel for Legal Opinion/Search Report etc Bait for current
Any other fee, if any Bait for current
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