If retirees want to apply for a loan from the bank, there are a few things to consider.
Because age plays a crucial role.
Update from March 2, 2023:
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Hamburg – After many years of work, people of retirement age often find the time to finally pursue their hobbies and passions.
Retirees embark on their long-awaited trip around the world, want to buy a new car or shower their beloved grandchildren with presents.
But all of this costs money – which most seniors do not have in excess in view of the current financial situation.
This raises the question: Are pensioners also entitled to a loan from the bank?
Monetary value made available for a limited period, amount: | credit |
The three most common types of credit: | Installment loan, overdraft facility, real estate loan |
Process: | With loans, the borrower borrows a certain amount from the lender and pays rent in the form of interest |
Loans for pensioners without age restrictions - what can the loan fail?
The question can be answered briefly and concisely with "Yes": Because officially there is no age limit for lending to pensioners.
However, it must be quickly accepted that with advancing age it becomes more and more difficult to get a loan from the bank.
In most cases, retirees have a worse chance of getting a loan than younger customers.
In addition, many banks limit the credit limit for seniors, reports the Gesellschaft für Verbraucherinformation mbH,
Comparison.de.
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Do you want to apply for a loan as a pensioner?
Then there are some things to look out for.
(24hamburg.de assembly)
© Panthermedia/imagebroker/Imago
This is simply because, when lending, the banks have to ensure that the loan can also be repaid.
It is therefore not only the creditworthiness of the customer that is decisive, but also the age.
Most banks also pay particular attention to the applicant’s income when lending – which of course decreases with retirement compared to working life.
In addition, the risk of illness or death among pensioners is
statistically
higher than among younger customers.
That's why banks keep refusing loans for seniors, according to the
SWR
even before retirement.
Getting loans as a pensioner: what options banks have
However, there are different options that you can suggest to your bank as a pensioner when applying for a loan: On the one hand, banks can invest the loan with seniors for a short term and combine this with high rates, reports the
SWR
.
So there would be a high probability that the loan would be repaid before death.
Or the bank approves a longer term for the loan, but charges significantly higher interest rates.
The bank's third option is additional insurance, with which the bank is on the safer side if installments can no longer be paid.
However, according to the SWR,
this insurance is
often expensive in old age.
In general, there are a few things that you should consider when investing as a retiree.
Loans for pensioners over 70: At what age can you no longer get a loan?
If you don’t want to do without a loan as a pensioner, there are also a few tips that you should keep in mind when applying for a loan.
First of all, the sooner the better.
As has already been pointed out, age plays a central role in a loan.
Incidentally, age is also a decisive factor in the widow's pension for surviving dependents.
According tovergleich.de
, as a 65-year-old pensioner you have
a better chance of getting a loan than at 75.
Many banks actually have an age limit of up to 75 years – according to the comparison portal
Verivox,
borrowing is not impossible even at that age.
However, in most cases, pensioners over the age of 75 are only granted loans of a maximum of 25,000 euros.
Few banks even grant a loan for seniors over the age of 80, but the credit rating must be excellent.
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Loans for retirees without age restrictions: how to increase your chances of getting a loan
The loan amount and the term of the loan are also important.
"Anyone who can afford higher monthly installments and thus shortens the term or only needs a small loan (up to €10,000 loan) is more likely to get the loan they want," says the online
portalvergleich.de
.
What can also increase the probability of accepting a loan for retirees is a co-applicant.
Spouses or life partners as well as children or even friends can ensure better creditworthiness as co-signers and in this way secure the credit of their parents or relatives.
According to
Verivox,
the advantage of two applicants is that you, as a pensioner, are promised better credit terms.
In this way, the risk of a loan default is reduced for the bank.
Tip for a loan application as a pensioner: ask several banks
One tip at the end: Get different loan offers from several banks and compare them.
You should therefore not only rely on your house bank for a loan - even if this is of course a sensible first point of contact.
However, different banks often make different good offers.
So don't give up hope if you don't get it right away with the first two banks.
But beware of dubious offers on the Internet - especially online there are numerous dubious loans that are only offered to seniors.
In this regard, it is better to stick to well-known banks and institutes.
Rubric list image: © Panthermedia/imagebroker/Imago