After retirement, a person’s salary stops, but household expenses usually remain the same. Daily costs continue, and due to old age, medical emergencies can also happen.
In such situations, people often think about taking a personal loan from a bank to meet their financial needs.
However, banks reject many applications because retirees no longer have a regular income. If you are facing this situation and need extra money, there are other options apart from personal loans.
With the right information and planning, financial stress after retirement can be reduced. Let’s understand how retirees can manage their finances.
Loan Against Fixed Deposit (FD)
If you have a fixed deposit in a bank, you can take a loan against it without breaking the FD. Banks treat the FD as collateral and offer this facility. T
he interest rate is slightly higher than the interest earned on the FD, but the process is simple.
This option is suitable for retired individuals because paperwork is minimal. Banks usually provide a loan of up to 80% of the FD amount.
Gold Loan Option
A gold loan is another good option for retired people. You can quickly get a loan by pledging your gold jewelry or ornaments. The interest rate is usually lower than unsecured personal loans, so it is more affordable.
If you repay the loan on time, your gold remains safe.
Loan Against Property
If you own a house or any property and need a large amount of money, you can take a loan by mortgaging the property. Banks consider this a secure loan, so the interest rate is generally lower than a personal loan.
