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Jagdish   20 June 2018

Is it possible to get a loan at age 69 with no income?

I am a retired government employee aged 69 looking for a loan from a bank with no income under my belt against the flat I own.My pension is below Rs. 1500 and I've no other source of income. I need the loan to fight a court case against my brother. What legitimate reasons I can give to a bank in convincing to give me a loan for fighting a court case which supposedly I will win? Is there any consideration given to senior citizens like me legally to get a bank loan with no income but a flat under my name?


 4 Replies

Raghav Arora   20 June 2018

Hi Sir! Thanks for the question! 

Senior citizens can avail home loan but the amount may not be as high. The amount may be capped at a certain amount based on the income and financial condition of the borrower. For example, a bank may cap the loan amount to 25 lakhs or 50 times monthly pension whichever is lower with the additional condition that the EMI should be less than 40% of the monthly pension.

Moreover, in home loan for senior citizens, the tenure is fixed in such a way that the borrower’s age doesn’t exceed 75 years. So if you take a loan at the age of 69 years, the tenure will be for a maximum period of 6 years. All these criteria impact the amount of home loan senior citizens are eligible for. The collaterals required are property or the insurance policies.

You may get some help if you can make your son/daughter your nominee. Good Luck!

Jagdish   20 June 2018

Thank you for your reply!

I do have a query. Home loan can be taken only when we want to buy some house.

I already have a home, i mean a flat. I did put all my retirement money in this house and I do not have any loans against my name till date or against my existing flat. Now i need some loan for the first time in my life at the age 69, but as i have no income; will i get one using my existing flat as the collateral ?

Raghav Arora   20 June 2018

The specifications for a mortgage loan are almost the same( Income, Pension and 75 years of age as your deadline). Everything will be in consideration of your age and income and since both of them are not in favor, it will be difficult for you. Yes, the banks favor govt employees, however, your pension is also too less and if you even get a loan it would be a puny one.  The banks have a very lengthy and distasteful procedure for loans of any kind. The best bet for you in Home, Personal or Mortgage loan would be a nominee. 

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G.L.N. Prasad (Retired employee.)     20 June 2018

For availing mortgage loans, no questions are asked but open a separate account and deal with all litigation expenses through that account only.  The terms of agreement on mortgage loan is that in case if you fail to repay the same during your life time, they will auction the property, adjust their loan and pay rest of the amount to nominees.  First visit to any SBI nearest to your branch , read terms and conditions and discuss.

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