SEP Loan

The Supplemental Employee Pension (SEP) Loan is a financial tool that allows employees to borrow against their retirement savings in certain circumstances. This type of loan is typically associated with employer-sponsored retirement plans, such as 401(k)s. Employees facing financial hardships, like medical expenses or home purchases, may be eligible to take out a SEP loan. The borrowed amount must be repaid with interest, providing a source of short-term funding while allowing the employee to retain some control over their retirement assets. However, caution is advised, as early withdrawals can have tax implications and impact long-term savings.

Eligibility criteria	Salaried individuals	Self-employed individuals
Age	28 to 58 years	25- 70 years
Residential status	Resident of India	Resident of India
Employment status	Should be a salaried individual employed in a public sector company, private company, or an MNC	Should be self-employed with a steady source of income
Maximum loan tenor available	Flexible tenor up to 18 years	Flexible tenor up to 18 years
Maximum loan amount of	Up to Rs. 5 crore	Up to Rs. 5 crore