Would you like to take out a loan for retirees? Are you a pensioner or pensioner? How old are you and what is your retirement income?
We would like to guide you with tailor-made information on the loan offer that suits your credit needs and personal requirements. We briefly present individual loan offers and name the target group as well as advantages and disadvantages.
Loan for retirees – what is it?
A loan for retirees is a loan for retired people. According to German language use, the group of pensioners includes all people who receive retirement benefits. In Austria only pensioners are called that.
The group of pensioners in Germany includes retired civil servants, pensioners and the self-employed who receive their retirement benefits from capital income. Lending is unfortunately not easy for all retirees mentioned.
Retired credit – what to look out for?
From a neutral point of view, a loan in retirement is not a special loan. In principle, the same rules apply as for loans from young people who are fully employed. Sufficient creditworthiness must be demonstrated that meets the individual requirements of the bank. Proof of a secure income must also be provided.
Pensions and pension funds are considered safe payers. Both the pension and the pension are recognized as a secure source of income at the same level. For these groups, there is no difficulty in recognizing income from the loan for retirees. It would be different with retirees who feed their old-age pension from other sources. Rental and leasing income is not as secure as pension income.
If the rented property is empty, it causes costs but does not bring anything. At the most, it could guarantee the borrower’s creditworthiness. The chances of success are a question of the individual case. In Berlin, the property value should be able to vouch for large loan requests alone. In sparsely populated areas without job opportunities, however, it becomes more difficult to prove.
Credit Hurdles – Senior Loans in Germany
A common hurdle that all retirees have to overcome would be the age limit. The legislature does not draw a binding regulation for age limits. Every credit provider is free to decide whether or not to draw such a line. Usual thresholds start before retirement. For example, getting a home purchase loan at the end of 50 is not a matter of course.
From the age of 62, the borrower would be disqualified from lending without a foreign bank. The incisions are felt massively at the age of 70 to 75 years. Credit institutions are gradually withdrawing their loans for retirees. Neither the promotional loan from the mail order business nor an installment loan from many house banks is still possible.
However, pensioners face the greatest credit hurdle. A pension in the amount of the average nationally paid does not qualify for regular credit. There is no attachable income component. Most credit institutions expect at least 100 USD of attachable income for regular loan offers. That would correspond to a net pension of at least 1180 USD. With an average pension of just under USD 1,000, there is a large gap in income.
Loan offers for pensioners – special senior loans
Special providers lure retirees with special senior loans. The average pension is a good three times the average pension. Proof of creditworthiness through income is therefore not a problem. Unfortunately, the advertised cheap loan for retirees is not necessarily as cheap as it could be. Specializing in old people has advantages and disadvantages for the credit institution.
One advantage is the good reputation and older borrowers as safe payers. In the last phase of life, people think more carefully about which burdens they can still burden themselves with. Nobody wants to leave debts to their children and grandchildren. The flip side of the coin is the higher natural risk of death. With special insurance, the providers try to protect themselves from the risk.
The bottom line for borrowers is that they should often take out “voluntary” high-risk credit insurance. The insurance premiums can easily go beyond the scope of the interest claims.
Loan for pensioners – emergency loan or installment loan?
With a very small pension, no retiree is interested in credit. However, the running costs do not take into account the monthly budget of the pensioner’s household budget. After deducting the rent, there is hardly enough left to live for many. From this perspective, a very small but quickly disbursed loan can save over the month.
Great Bank from Berlin, for example, offers a suitable loan for pensioners that can be approved from a pension income of 500 USD. New customers are likely to apply for a quick loan of USD 100 to USD 500 despite a pension from Great Bank. The provider sets the duration for initial applications at 30 days. Follow-up loans would be possible with sufficient credit evidence with a larger credit volume and up to 6 months.
In addition to the loan for retirees, with quick loan disbursement no loan volume, an installment loan can of course be portable and necessary for retirees. Best Lender offers a good point of contact for loan requests for pensioners. There are no age limits. A pension or pension income of 1000 USD per month entitles you to apply. A loan for retirees, without credit insurance, could come from private or banks through Best Lender.