When retirement age is finally reached, many people have taken on retirement activities and hobbies that should now be lived out much more intensively. Regardless of whether this involves long journeys, cruises or extended tours by motorcycle to pursue these hobbies, there are often major purchases to be made.
As a rule, these are financed with a loan, for example a car loan. But what if a pensioner applies for a loan? What are the chances of getting a permit or is there a special loan for pensioners? How can the best conditions be achieved?
What chances do pensioners have when applying?
Unfortunately, pensioners are now considered a risk group by banks. Basically, this only means that banks see an increased risk among pensioners that the loan cannot be repaid as required. The banks argue, among other things, that pensioners have a fixed income, but this is relatively low. In addition, pensioners are considered a risk, macabre it sounds, as they have an increased risk of death. This is inevitably due to the significantly older age.
In summary: the chances of getting a normal loan for a pensioner are unfortunately very low. It is difficult for a 65 year old to get an installment loan, for a 75 year old it is even more complicated.
What are the disadvantages for pensioners?
Of course, there is always a rejection of the entire application, but there are other disadvantages for pensioners. Among other things, a pensioner will be granted a loan on significantly worse terms than a young person who applies for the same amount. Of course, this is particularly evident in the interest rates, which will be significantly higher. Even long terms of several years will usually hardly be approved. The maximum amount is also severely limited.
Is there a special loan for retirees?
Loans for trainees, loans without a credit check, especially the Internet suggests that there are suitable and specially adapted loans for every need. However, since these are usually dubious providers, the question of whether there is a special loan for pensioners must also be answered in the negative. There are also providers on the Internet who promise loans for pensioners at top conditions, but you should exercise caution here.
Where can I get a loan as a pensioner?
The large banks generally do not give senior citizen loans at all. In general, however, it makes sense as a pensioner to apply for a loan for senior citizens directly from the house bank. This is because not only does all the data already exist, but it also has an insight into the payment behavior of the applicant and, ideally, has known this for several years.
Since there is a certain relationship of trust, the chances of getting a loan are also significantly greater. However, if the application is also rejected at the house bank, the next step should be to take a loan into old age, especially at smaller banks, including banks for private customers only. These are often less stringent when it comes to lending and, accordingly, more often approve pensioner loans.