Pensioners, retirees or pension recipients can also receive a loan. However, there are a few prerequisites that need to be observed.
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Many people still want to fulfill their wishes in retirement. Sometimes expensive purchases are also required, which can be financed by taking out a loan for retirees. What requirements retirees, pensioners or pension recipients must meet in order to receive a loan and how you can improve your chances is discussed below.
Loan for retirees, retirees: is it possible?
As a pensioner, can you get a loan from the bank? Short answer: yes, many retirees and retirees have a good chance of getting a loan. Even for seniors with low pensions and correspondingly low incomes it is quite possible to obtain a loan, but many banks limit the credit line for pensioners.
Of course, age also plays a role. The financial institutions handle the age limit for a pensioner loan differently. Some banks no longer accept applicants who are over 60 years old, while others also accept borrowers with an entry age of 79 years. There is no legal limit. However, there is evidence that most banks no longer provide loans to people over the age of 75. It is important to observe the guidelines of the banks in this regard.
To check if you can get for a loan, you should make an inquiry using the form.
Loans for Retirees: Shorter Term, Better Opportunity
A loan for retirees is usually no different from other consumer loans. Here, too, the conditions depend on the level of income – or in this case the level of the pension or basic security – as well as the available reserves. Banks check the borrower’s income situation and often expect the potential borrower to have at least 1,000 euros a month at free disposal. The chances of getting a loan increase when retirees and co. Earn income from renting or leasing.
Loan for retirees aged 60 or 70 or 80?
The individual age is an important factor that can decide whether to approve a loan. For example, a retiree in their mid-60s has better chances than seniors in their seventies. The most important factors here are the loan amount and the term. The shorter the term, the higher the chances of getting approval. Specifically, this means: the higher the monthly rate, the better. Otherwise, you have the option of applying for a loan of a small amount – that is, up to a maximum of EUR 10,000.
Term for loans for retirees, pensioners, pension recipients
When lending to retirees, many banks make sure that the term of the loan is not set too long, as the risk of illness or death in old age is statistically greater than that of younger customers. Therefore, many banks fear that a loan for retirees cannot be repaid in time and that they will therefore be left with their claims. But there are ways to secure and thus to increase the chances of getting a loan approval even in retirement age.
The requirements for obtaining a senior loan
As a rule, retirees are more screened when applying for an installment loan than younger applicants. Therefore, in order to apply for a loan as a pensioner, the following framework points should be met in order to be able to make realistic hopes for a loan approval:
- As an applicant, your place of residence must be in Germany,
- You should have a secure pension,
- Income and expenditure should be in proportion to one another.
- And you should have a good credit rating (see below)
Loan for retirees over 70
As a rule, the higher the age, the lower the approved loan amounts. Most banks do not normally provide senior citizens aged 75 and over with no more than EUR 25,000. A few banks give loans to retirees over 80 years of age – but this requires an excellent credit rating.
How can you as a retiree increase your chances of getting a loan?
To increase the chances of getting a loan as a retiree, you should be able to provide the bank with additional collateral. These include, for example:
- property
- guarantee
- Mitantragsteller
- Payment protection insurance
- deposit
Property: Properties given as security can usually secure the entire credit line. However, if you are unable to repay your loan, the bank has the right to auction your property.
Guarantee: With the help of a surety, the chances of getting the loan approved can be increased enormously, but this itself must have a high creditworthiness. If the loan cannot be repaid, it is the guarantor’s duty to repay the outstanding amount.
Contributor: It is also possible to apply for a loan together with another person, for example your spouse. If the age of the co-applicant is also younger than your own, this can also have a positive effect on a loan approval.
Residual debt insurance: Most banks accept payment protection insurance as security. Thus, this can be worthwhile with regard to lending, but is usually associated with high costs. Such an insurance covers the outstanding installments should the applicant for a loan die before the repayment. This also has the advantage that the children or the heirs of the deceased do not have to pay for any debts.
Deposit: Another way to be able to offer banks collateral when granting loans is to specify pledged objects. This can be, for example, jewelry, securities or savings. If the loan cannot be repaid, the bank will attach it. It should be noted here that bank savings are generally more likely to be accepted than movable goods.
Pensioner loan: Obtain a SCHUFA self-assessment
Before you submit a loan application, you should obtain a SCHUFA self-assessment to check for outdated or incorrect entries. Since banks attach great importance to the SCHUFA score when granting loans in order to check the creditworthiness of their customers, they should have it checked for unfavorable information that could have a negative impact on your creditworthiness and possibly corrected.
Therefore, retirees should compare several loan offers. A lot of money can be saved in terms of the term, the loan amount and the interest rate. It is important not to accept the first offer, but rather to obtain detailed information and, if necessary, seek advice from a professional. You should therefore use the comparison calculator on this page.
Former civil servants and beneficiaries can also use this link * to find out more …
* Affiliate Link: When concluding a credit agreement, we receive a commission.
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