On interest rates
Rates change frequently and are set per applicant, so we do not republish a figure here. Check PNB’s current rate on their own site, then work out the real cost with our EMI calculator.
The pension loan, band by band
What makes this scheme unusual is that it does not stop at a single age cut-off. Instead the limit steps down as age rises, so borrowing remains possible well into your seventies rather than ending abruptly at 70.
| Your age | Maximum loan | Or, whichever is lower |
|---|---|---|
| Up to 70 | ₹10 lakh | 18× net monthly pension (20× for defence) |
| Over 70, up to 75 | ₹7.5 lakh | 18× net monthly pension (20× for defence) |
| Over 75 | ₹5 lakh | 12 months of pension |
Repayment runs to five years or to the age of 78, whichever comes first. So a 74-year-old pensioner is not restricted to a token amount — the band still permits ₹7.5 lakh, with four years to repay it.
The defence multiple is the part worth flagging. Twenty times pension against eighteen is roughly an 11% larger loan on the same income, and it applies to armed forces pensioners specifically. If that is you, the wider picture is on our defence personnel page and our pensioners page.
Did you know?
A multiple of pension is a fundamentally different test from the FOIR calculation applied to salaried borrowers. FOIR asks what is left after your existing EMIs; a pension multiple asks only what your pension is. For a pensioner with no other borrowings, the multiple is usually the more generous of the two — which is why a pension-specific scheme frequently sanctions more than a general personal loan would on the same monthly income.
The condition that decides everything
Both routes at PNB require the money to come through PNB. Government, PSU and institutional employees must draw their salary via a PNB account; pensioners must draw their pension through a PNB branch.
This is the same gate SBI applies to Xpress Credit, and for the same reason — the bank can see the income directly rather than taking it on paper. If your pension or salary goes elsewhere, this scheme is not available to you, and no amount of documentation substitutes.
The practical response is the one we give throughout this site: approach whichever bank already receives your money. Bank of Baroda, for instance, will also consider pensioners paid through the treasury or the Defence Pension Disbursing Office rather than through its own branch — a wider door for exactly the same applicant.
Expert insight
For a pensioner, the loan term matters more than the rate, and the reason is uncomfortable but worth stating. A loan running to age 78 will in many cases outlive the borrower's own expectations for it, and the liability does not simply vanish — it falls on the estate, or on a family pension that is smaller than the pension the loan was assessed against. Before taking the maximum term available, check what happens to the balance and whether any loan cover is included. It is a ten-minute conversation that spares a family a great deal.
Government and PSU employees
The employee scheme requires permanent or confirmed status with a state or central government body, a public sector unit, or a reputed institution, with salary drawn through PNB. That is a narrower profile than a private bank's, and the pricing reflects the security of it.
If you fit, this belongs on your shortlist alongside SBI. If you do not — private sector employment, or salary paid elsewhere — one of the private banks on our banks page is the more realistic route.
Please note
Money Bharti is a loan marketplace and is not affiliated with, endorsed by, or acting on behalf of Punjab National Bank. Figures above are indicative, were last reviewed on 2026-07-31, and change without notice — confirm everything on PNB's own website before applying. Nothing here is a quote, an offer, or a guarantee of approval.
Questions this page gets asked
How much can a pensioner borrow from PNB?
Up to ₹10 lakh below age 70, ₹7.5 lakh between 70 and 75, and ₹5 lakh above 75 — in each case capped by a multiple of monthly pension.
What is the multiple of pension?
Eighteen times net monthly pension, and twenty times for defence pensioners. Above 75 the cap is twelve months of pension.
Up to what age can I repay?
Five years, or up to age 78, whichever comes first.
Must my pension come through PNB?
Yes. The pension must be drawn through a PNB branch for this scheme.
What if my pension is paid elsewhere?
Approach the bank that pays it. Bank of Baroda also considers pensioners paid through the treasury or DPDO — see our Bank of Baroda page.
Who qualifies under the employee scheme?
Permanent or confirmed employees of state or central government, PSUs or reputed institutions, drawing salary through PNB.
Is a pension multiple better than a normal eligibility calculation?
For a pensioner with no existing loans, usually yes, because it does not deduct obligations the way a FOIR test does.
What happens to the loan if the borrower dies?
The balance falls to the estate or is recovered as the sanction terms provide. Ask about loan cover before taking a long term.
Conclusion
PNB is a narrow bank with one genuinely strong product. If you draw a pension through PNB — and especially if it is a defence pension — the scheme is more generous than most, and it keeps lending well past the age at which other banks stop.
The gate is the account, not the pension. If your money arrives somewhere else, start there instead. And whatever the term on offer, ask what happens to the balance before you take the longest one. Other lenders are on our banks page.
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