If a pensioner has not yet reached the maximum age, there are no problems with lending. However, banks refuse a loan from a certain age because they see the risk of death too high.
Is a loan possible for retirees?
Pensioners have enough time to travel and enjoy everyday life without having to think about working hours. Pensioners also have wishes that should be fulfilled. It can be a car to keep mobile or a cruise that has had to wait a long time.
In such situations, many wanted to take out a loan for retirees. However, problems start there, because the bank rarely gets involved in granting a loan at this age. Due to the increased risk of death at this age, banks have to fear that the loan will not be paid off on time. Credit institutions often set a maximum age of 65 to apply for a loan.
Collateral to increase credit opportunities
Even though it seems impossible to get a loan for retirees, it is not impossible. Credit opportunities can be increased if there is collateral that you would not otherwise have at that age. It will take some patience, but it will often be worth it. One possibility is that the pensioner is looking for a guarantor.
This guarantor can be your own child, grandchild or a friend. It is always important that the guarantor has his own income, which is attachable. However, if no guarantor is found, life insurance can also be deposited as security.
Practice has often shown that pensioners in particular have life insurance policies that were taken out many years or decades ago. This results in a high surrender value, which forms the security for the bank. So it is only possible to get a loan for retirees who can convince the bank with guarantees.
Foreign loan – possible?
If you think you can apply for a loan abroad when you retire, you will quickly find that this is not an option. The main requirement here is that there is a fixed income that is earned from a non-self-employed activity. Here too, pensioners can expect to be rejected because of their old age.