A new product “Jai Jawan Pension Loan” has been launched for financing Young Defence Pensioners of Defence and Para Military Forces who   retire at very young age, sometimes even in the range of 30 to 35 years. As these young pensioners do not have any means of livelihood other than pension, they find it difficult to meet their emergent financial needs or to spend on setting up small ventures to supplement their income.

 

Name of the scheme

Jai Jawan Pension Loan

Purpose

To meet personal expenses of young Defence pensioners.

Eligibility

Pensioners of Armed Forces, including Army, Navy and Air Force, Paramilitary Forces, Coast Guards, Rashtriya Rifles, CRPF, BSF,ITBP etc.

Age

Upto 50 years.

Loan amount

48 times of net monthly pension. Subject to maximum of Rs.2.00 lakh subject to EMI/NMI not exceeding 40% of net monthly pension.

Margin

NIL

Guarantee

Third Party Guarantee of Spouse eligible for family pension. In the absence of spouse TPG of any other family member or a third party worth the loan amount.

Repayment

Maximum 84 months, payable one month after disbursal of loan from the pension through SI, to debit the pension account for recovery of monthly instalments.

Type of loan

Clean Demand Loan

Processing fee

Same as for Prasanthi Loan

Disbursement

By credit to SB account/Current account of the pensioner.

Additional document required

An undertaking to recover monthly instalments from pension credited to account.

Rate of interest

13.00% (BPLR)

Authorized Branches

All pension disbursing branches.