There are some customer groups that have a lot of difficulty in getting a loan from many banks than employees. Sometimes it can also happen that hardly any bank agrees to give these customers a loan at all.
Among other things, the pensioners also belong to these customer groups, who no longer receive loans from a few banks. On the one hand, there is hardly a safer “income” than the pension, but on the other hand, of course, the risk of death increases with age. As a result, quite a few banks consider it too risky to lend money to a 70-year-old, for example, that he may not be able to pay back due to his death.
But there are also banks that still lend money to senior citizens. Some institutes even go one step further and offer a special loan for pensioners.
What distinguishes the loan for seniors?
When talking about pensioner loans or a senior loan, these loans are almost always installment loans. On the other hand, the loan for pensioners can also be classified in the area of special loans, since the loan is only intended for a very special customer group, namely the senior citizens/pensioners.
In this respect, the loan for seniors can in principle be sorted into a similar group to that for loans for students or for loans for the self-employed. Because here, too, the respective loan is only granted to a very specific customer loan. Even if there are not so many loan offers in this area, you should, therefore, compare the few offers with each other.
Because pensioners in particular often have to reckon with every euro, so the search for a cheap loan can be worthwhile. Our recommendation is, for example, E-Money. The loan broker does not offer a special loan for retirees, but the installment loan offered can also be used by senior citizens, among other things, and at a very low-interest rate.
What are the conditions to be considered for pensioners’ loans?
At some banks, pensioners can also get a special loan for seniors, but the senior loan is almost always associated with certain restrictions or the lending is subject to certain conditions. First of all, these are the “normal” credit conditions for loans for pensioners.
These include that the Credit Checker must not be negative and that the income, in this case, the pension, must be high enough to be able to pay the later loan installments. For this purpose, a list of income and expenses is usually drawn up, on the basis of which the freely disposable income can be determined.
In addition to these general loan conditions, there is a special condition to be considered for senior citizens’ credit, namely a certain maximum age. Because even pensioner loans are not granted to people who, for example, are already 80 years old. In most cases, the age limit for such loans is between 70 and 75 years.
Credit insurance and other loan collateral to hedge risk
Mainly due to the fact that the risk of death, and thus the risk of default, is naturally increased among pensioners as borrowers, some banks only grant loans to pensioners on condition that credit insurance is taken out.
Such residual credit or residual debt insurance is primarily a protection for the bank because the insurance pays the outstanding credit debts if the insured / borrower should die before the loan is repaid in full.
If you do not want to take out such credit insurance, which of course involves additional costs, you can alternatively provide different loan security. Above all, it is possible to pledge securities or savings that the bank could use in “damage” to settle the outstanding claim.