Sample Application Letter for Loan to Pensioners in Bank

Retired individuals, who are having a valid PPO number and drawing pensions, can avail a loan from the banks to meet their personal needs including medical expenses.

Rate of interest is offered at a very competitive rate by the banks with less paperwork and no hidden charges. The preclosure and prepayment charges are also very low or nil.

Each financial institution has their own application format. You can visit the branch office to obtain an application form. Hereunder is a generic application letter for your information and reference.

TEMPLATE

To

The Manager

__________ Bank

__________ Branch

RE: Advance under Personal Loan Scheme for Pensioners.

Respected Sir/Madam,

I request you to grant me an advance/loan of Rs. ______ (Rupees _________________ only) for meeting my urgent financial needs. I am eligible for a loan under the Loan Scheme for Pensioners.

I am drawing a monthly pension of Rs. ______ (Rupees _________________ only) having retired from (Name of the Organization) in the year _____. The pension is being credited in my SF/ CA/ OD A/c no. __________ maintained with ________ Branch of ________ Bank ("the Bank").

I agree to repay the said advance/loan of Rs. ______ (Rupees _________________ only) in ____ monthly installments along with interest at the rate of ___ per cent per annum subject to changes from time to time. Further, I agree to execute all the documents prescribed and abide by all terms and conditions of the Scheme.

I hereby irrevocably authorize the Bank to debit the loan installment amount monthly from my SF/ CA/ OD account bearing number __________ with the Bank where my pension is credited and credit it to the loan account until the loan is fully repaid by me.

I understand and acknowledge that in the event of my death or for any other genuine reasons the Bank shall have the right to recall the loan outstanding at any time as may be deemed fit.

I undertake and agree that I will not raise any further advance/loan from any other branch of the Bank or any other Bank or financial institution under the same or similar Scheme until full repayment of personal loan, without consent of the Bank.

I declare and affirm that the information and data furnished by me herein-above to the Bank are true and correct.

Thanking you,

Yours faithfully,

    (Signature)

(Name of the Application)

Address: ___________

Dated ________

Place: ________