SBI Pension Loan for Exservicemen and Govt Pensioners- Complete information and Application Process in 2023

SBI Pension Loan for Exserviccemen is a wise offer for pensioners. After retirement your primary source of income is pension. SBI has facilitated the pensioners to avail the Loan on your Pension Account to fulfill your domestic requirements. You may use this loan amount for your child’s marriage, buy a flat or plot to build your dream home, plan a foreign trip or get medical aid with simple and hassle free loan and repayments facility.

Special Offer on SBI Pension Loan

  •  Festive Offer: SBI has announced 100% Waiver in Processing Charges across all channels for SBI Pension Loan from 15th August 2021 till 31st January 2022

Features of SBI Pension Loan

  • Pension Loan amount:  You may get a pension loan from SBI ranging between Rs. 2.5 lakh to Rs. 14 lakh for your various personal financial needs.
  • Minimum documentation: State Bank of India required minimum documentation to process your Pension Loan application. You may save a lot of time and receive the loan amount quickly.
  • Flexible EMI repayment tenure: You can repay your SBI pension loan within a lexible and convenient tenure decided upon your ability ranging between 2 Years to 7 Yers..
  • Quick loan processing: No doubt SBI takes a very minimum time and minimum documentation and hassle-free application process  that ensure quick processing of your SBI pension loan.
  • No hidden cost: SBI never charges any extra amount for loan processing and repayment other than specified in terms and conditions.
  • Easy Application at all SBI Branches: You can apply for SBI Pension loan at any SBI branch.

Eligibility Criteria for SBI Pension Loan

For Central & State Government Pensioners:

  • Your  age should be below 76 years.
  • You must draw your pension from SBI.
  • You should furnish an irrevocable undertaking not to amend your mandate to the Treasury during the tenure of the loan.  You will not be able to transfer your pension account from SBI to anywhere during the loan tenure.
  • A written consent in writing to be given by you in this effect that your pension account will not be transferred to any other bank till a NOC is issued
  • All other terms and conditions of the Scheme will be applicable, including guarantee by the spouse (eligible for family pension) or by a suitable third party.

In case of Defence Pensioners

  • You must belong to Armed Forces, including Army, Navy and Air Force, Paramilitary Forces (CRPF, CISF, BSF, ITBP, etc.), Coast Guards, Rashtriya Rifles and Assam Rifles.
  • Your pension account is with SBI and drawing pension regularly from SBI. Your Original PPO (Banker’s copy) should be held with SBI.
  • For defence pensioner, no minimum age bar under the SBI Pension Loan scheme.
  • You should not be more than 76 years of age at the time of processing the Pension Loan.

For Family Pensioners

  • You should be an authorized members of the family to receive pension after the death of the pensioner.
  • Family pensioner should not be more than 76 years of age at the time of loan application.

SBI Pension Loan  Rate of Interest of

Rate of interest of SBI Pension Loan started from 9.75% and depends on various factors, it may may be changed from time to time. For current rate must contact your nearesrr SBI Branch.  Mean ROI for Pension Loan as announced by SBI for January to Mar 2021 was 9.83%.

Terms and conditions as published in official website of SBI

  • There is a prepayment charges – 3% on prepaid amount.
  • However, no prepayment/ foreclosure charges if the account is closed from the proceeds of a new loan account under the same scheme.
  • Repayment mode of the loan is furnished by Standing Instructions to debit the pension account for recovery of the EMIs.
  • Guarantee of loan is secured by TPG of Spouse eligible for family Pension or any other family member or a third party eligible for pension loan.
  • Your EMI/NMP ratio shall not exceed 33% in all the cases for Family Pensioners
  • Your EMI/NMP ratio shall not exceed 50% in all other type of Pensioners.

Maximum Eligible Loan Amount and Repayments

Loan amount for Central and State Government Pensioners

Age of  Pensioner at the time of Loan sanctionMaximum amount of loan (Equal to 18 months Pension or Rs.)Repayment Period (Fixed)Maximum Age permitted at the time of full Repayment
Below 7214.00 lakh60 monthsUp to 77 years
72 – 74 years12.00 lakh48 monthsUp to 78 years
74 – 76 years7.50 lakh24 monthsUp to 78 years

Loan amount for Defence Pensioners :

Age of  Pensioner at the time of Loan sanctionMaximum amount of loan (Equal to 18 months Pension or Rs.)Repayment Period (Fixed)Maximum Age permitted at the time of full Repayment
Below 56 years14 lakhs84 months63 years
56 – 72 years14 lakhs60 months77 years
72 – 74 years12 lakh48 months78 years
74 – 76 years7.50 lakh24 months78 years

Loan amount for Family Pensioners (including Defence Pensioners):

Age of  Pensioner at the time of Loan sanctionMaximum amount of loan (Equal to 18 months Pension or Rs.)Repayment Period (Fixed)Maximum Age permitted at the time of full Repayment
Below 725.00 lakh60 months77 years
72 – 74 years4.50 lakh48 months78 years
74 – 76 years2.50 lakh24 months78 years

SBI Pension Loan at a Glance

Maximum Loan AmountUp to Rs. 14 Lakh
Rate of Interest9.75%  per year onwards
Loan TenureUp to 84 months  (varied upon age limit)
Processing Fee 0.50% to 1% of the Loan Amount + GST * No Processing Fee upto 31 Jan 2022.
Prepayment Charges3% on prepaid amount

Documents Required for SBI Pension Loan Application

The documents required to get SBI pension loan may vary depending upon the category of applicant. Some statutory documents are as follows:

  • Proof of Identity: Any Valid ID including EPIC (Voter Identity Card), Passport, Pan Card, Driving License, Adhar Card, Defence I Card.  
  • Proof of Address: In support of proof of your address you may produce any of the following documents – Passport, Driving License, Electricity Bill, Ration Card, Bank Account Statement, Telephone Bill, Deed of Flat/House, Aadhaar Card etc.
  • Income proof: Pension payment order (PPO).

How to Check SBl Pension Loan Application Status

SBI Pension Loan application status may be checked on the SBI official website. You can check the status of your SBI pension loan application by following the steps below:

  1. Visit the SBI personal loan application status tracking page of it official website.
  2. Enter your loan application reference number and your mobile number along with the  ISD code (+91)
  3. Click on ‘track’ to know the status of your Pension loan application

Fees and Other Charges for Pension Loan

Fees structure associated with SBI pension loan are as under:

Processing  FeeVaried from time to time. Ranges between 0.50% to 1% of the Loan Amount + GST.
Prepayment  ChargesFixed 3% on prepaid amount to be levied. No prepayment/ foreclosure charges to be paid if the account is closed from the proceeds of a new loan obtained under the same scheme.

EMI Calculation

Here is a table containing monthly EMI to be paid for SBI Pension Loan principal amounts, tenures and interest rates:

Loan Amount  (Rs.) and Interest  RateMonthly EMI Payout (Rs.)
2-year loan tenure3-year loan tenure4-year loan tenure5-year loan tenure6-year loan tenure
1 lakh @ 10% p.a.4,6143,2272,5362,1251,853
5 lakh @ 12% p.a.23,53716,60713,16711,1229,775
14 lakh @ 15% p.a.67,88148,53138,96333,30629,603

How to apply for SBI Home Loan

For SBI Pension loan you should apply online at link provided in the SBI official website.  For any sort of query or information required you may approach the bank. SBI has a rich customer care division to help and extend support their customers. For SBI Pension Loan application, you can reach out to SBI customer care via any of the following means given below:

Dial 1800-11-2211 for more information/ applying through Contact Centre
Give a Missed Call on 7208933142 or SMS “PERSONAL” on 7208933145 to get a call back from SBI Contact Centre

  • Write letter to the Bank: You can write a letter to SBI’s customer service department at:

Customer Service Department
State Bank of India
State Bank Bhavan, 16th Floor
Madam Cama Road,
Mumbai 400 021

  • Visit any Branch: You can also visit the nearby SBI branch


Q1. How can I apply for SBI Pension Loan?

You can apply online for SBI pension loan through the link provided at official website of SBI I,e .

Q2. How can I repay my SBI Pension Loan?

You can repay your SBI pension loan through EMI  for maximum tenure of  7 years. The loan repayment can be done by debit from your pension account every month.

Q3. I am 70 years old. Can I get the State Bank of India pension loan?

Yes. Pensioners who are drawing their pension from any of the branches of SBI and are under the age of 76 years may get SBI pension loan.

Q4. What is the maximum tenure of the SBI pension loan?

The tenure of the pension loan depends on the age of the pensioner. 5 yrs tenure is prescribed for the pensioner age less than 72 years. If  your age falls between 72 and 74 years, you may get loan tenure of up to 4 years while only 2 years repayment period is feasible for the pensioners between the age of 74 and 76 years.

Q5. Is it necessary to have a SBI account to get the SBI pension loan?

Yes. You must have your pension drawing account with SBI. You are eligible for a pension loan from State Bank of India if you are a state or central government pensioner, defense pensioner or a family pensioner drawing your pension through a branch of SBI.

Q6. I am a family pensioner. Can I get the SBI pension loan?

Yes, family pensioners also may get the pension loan provided that age should be below 76 years and your pension drawing account must be with State Bank of India.

Q7. How do I contact SBI ?

You can call SBI’s 24X7 toll free pensioner’s helpline number 1800-110-009.

You can also call on toll free number 1800-4253-800 or 1800-112-211  to get any information you required.

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