Wednesday, January 20, 2021

« Pensioners Loan

State Bank of Bikaner and Jaipur- Varisth Nagarik Pension Loan Yojana

Key features of the scheme are furnished below: 

Purpose: To meet Personal expenses of Pensioners:


  • Pensioners - All central and State government pensioners, pensioners of various Central/ State Govt. Undertakings and pensioners of SBBJ, whose pension accounts are maintained by our branches.
  • Family pensioners - Family pensioner i.e. spouse authorized to receive pension after the death of the pensioner.

In addition to the pensioners availing pension from our branches, the pensioners whose pension is disbursed by Government treasuries by means of cheques / bills payable, as per mandate of the pensioner, are also eligible for availing pension loan. In such cases, the original Pension Payment Order (PPO) remains in custody of the Treasury and the pensioner will give a mandate to the Treasury for payment of pension through a particular branch of the Bank.

Such pensioners will be included under the purview of the scheme subject to the following conditions:

  • The pensioner concerned will furnish an irrevocable undertaking that he / she will not amend the mandate to the treasury to pay the pension from a particular SBBJ branch, during the currency of the loan availed by him from SBBJ.
  • The concerned Treasury consents in writing that it will not accept any request from the pensioner to transfer his / her pension payment to any other bank / branch till an NOC is issued by the Bank.

Age of pensioner Pensioners:

  • The pensioner/family pensioner should not be more than 72 years of age.
  • Pensioners of SBBJ- The pensioner/ family pensioner should not more than 75years of age at the time of availment of loan.

Loan Amount:


Minimum loan amount : Rs. 10,000/- & Maximum loan amount : equivalent of 18 months pension with a ceiling of Rs. 5.00 lacs.

Age wise caps for the eligible loan amount are as under:-

  • Pensioners upto and including 65 years of age : Rs. 5.00 lacs
  • Pensioners >65 years and < or = 70 years : Rs. 4.00 lacs
  • Pensioners > 70 years and upto 72 years : Rs. 3.00 lacs*
  • *SBBJ pensioners (erstwhile employees of SBBJ) are eligible for pension loans upto 75 years of age.  EMI/ NMI ratio not to exceed 40% of the net pension drawn 

(II) Family pensioners:

Minimum loan amount : Rs.10,000/- & Maximum loan amount : Equivalent of 18 months pension with a ceiling of Rs.3.50 lacs 

For other than SBBJ Family pensioners:

Family pensioners < or = 70 years :Rs. 3.50 lacs
Family pensioners >70 years and < or = 72 years :Rs. 2.00 lacs

For SBBJ Family pensioners :

Family pensioners < or = 70 years of age : Rs. 3.50 lacs
Family pensioners >70 years and < or = 75 years of age : Rs. 2.00 lacs

EMI/ NMI ratio not to exceed 33% of the net pension drawn in both the cases.

Margin: NIL

Primary Security: NIL

Collateral Security (Guarantee):

(A) Pensioners - Third party guarantee (TPG) of the spouse, who is eligible for family pension. 

In the absence of the spouse, TPG of any other family member/ relative having net worth of not less than the loan amount.

(B) Family pensioners- Third party guarantee of a relative preferably of the son/ daughter of the family pensioner.

In case of death of the guarantor before repayment of the entire loan, fresh third party guarantee of another relative with adequate means should be invariably obtained otherwise the loan should be recalled.


Age of Pensioners including SBBJ Pensioners No. of EMIs
Age upto 70 years  60
Age >70 to 72 years 48
Age >72 and up to the age of 75years  24

*Exclusively for SBBJ pensioners

Repayment to commence from one month after disbursal of the loan.The branch will deduct the instalment from the pension at the time of payment of pension/ debit the equated monthly instalment from SB/CA A/c of the borrower.

Interest Rate SBBJ pensioners - 25 bps above the base rate i.e. at 9.95% 

Other Pensioners - 300 bps above the base rate i.e. at 12.70% for other applicants.

Processing Fee Rs. 500/- per application

Type of loan: Demand Loan

Disbursement: The amount may be credited to SB or CA of the pensioner.

Document required:

1. Application Form 
2. D.P.Note 
3. Arrangement letter 
4. Authorization letter Auto debit from account 
5. Irrevocable Letter of Authority 
6. Irrevocable Letter of Authority to Bank from pension paying and disbursing Authority.

Authorised Branches: All branches maintaining pension accounts. The loan to be given by the branch paying the pension

Reschedulement: In case of death of the borrower rephasement / reschedulement of pension loans may be permitted by allowing up to an additional period of 12 months.

In all such cases, the family pensioner / guarantor will be asked to apply to the Bank for rephasement / reschedulement and a fresh / additional guarantor, good for the loan amount and acceptable to the Bank will need to be made available to the Bank

Other condition: Pensioners will have to submit their PAN No. or Form 15H before availing the loan under this scheme.

Updated on : 21/1/2017