When they retire, banks approach such clients quite sensationally. Fixed income provided by the State is the best possible way to get a cash loan because banking systems reward such customers. It is important that the pensioner has a relatively positive credit history (i.e. without delays of more than 30 days) and the decision will be positive in many cases.
Pensioners, as with other professional groups, must meet the same parameters, i.e. DTI (percentage ratio of installments to remuneration) depending on the salary, it is 50% or 65%.
One should also pay attention to such clients with an age
However, there are banks where the maximum age limit is not available and the system decides whether we receive a loan. The standard is usually 75-85 years and there are some restrictions or additional insurance for such clients.
The pension is accepted in virtually every bank from the first day of receipt, and the documentation required is the confirmation of retirement or valorization of the pension. From other documents, the banks also accept confirmation of receiving a pension on the account or confirmation of receipt of funds by the postman.
In any case, it is important to provide a pensioner ID. Based on these documents, the bank calculates net income and accepts for capacity calculation.
To calculate the capacity
We need to find in the documents the exact amount the customer receives and, depending on the bank, assume appropriate maintenance costs – they are in the range of USD 500-1500.
When it comes to the DTI, most banks up to USD 3 thousand net accept 50% as the maximum level of installments in relation to remuneration. Above USD 3 thousand net we can allocate 65% of earnings in installments. In the case of an accurate calculation of the capacity, we also need to know the mortgage, cash and payday installments. If the customer also has credit cards and limits, the bank also calculates them as a credit charge.
Each bank accepts retirement as an income, but not everyone will approach us in the same way, so it is worth submitting a request to prepare calculations so as not to make inquiries alone because a larger number of inquiries block us and then we will not receive credit for several months.