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Pension loans schemes provide a great benefit for retirees. Individuals who are of pension age and their partners can get a loan under this scheme. The loan could be taken for a short on long period of time. Payments are usually received in regular instalments every two weeks. It is a good way for retires who have their capital tied down in assets to get cash for other needs.

To be eligible for pension loans schemes, you have to satisfy three basic requirements. You must be at least 65 years of age or older. You must be receiving or can receive pension under the asset test or income. Lastly, you should have real assets that will stand as security for the facility.

The maximum amount that you can receive on the scheme is dependent on the value of your property, the reserved equity and your age. The scheme is not available to people who are already collecting the maximum rate. Individuals whose entitlements are below the maximum of pension age can choose to receive up to the maximum amount on their payments.

This money is not free of interest. You have to pay an interest on the amount that you collect. Compound interest is calculated every fortnight on the outstanding balance of the facility. The good news is that these payments that are given to individuals are non-taxable.

The pension loan provider offers a flexible repayment system. Individuals can choose the mode of repayment that is most convenient for them. It is possible to pay in full or in part over a period of time.

People who have more than one property have to use only one as security. The individual can decide at any time to sell the property that is used as collateral for the loan. When this happens, arrangements have to be made for the repayment of the loan once the property is sold.