Loans for retirees

In principle, there is a need for funding in all population groups, as it is increasingly common for citizens to finance purchases and certain expenditures through a loan. The need often begins with trainees who want to finance their first home furnishings, for example, and in principle reaches into retirement age. For retirees often make purchases that are to be financed by a loan.

Banks are wary of loans for retirees

Banks are wary of loans for retirees

There are quite a few banks that are struggling with lending to retirees. The reason is simply that the risk of death increases naturally with increasing age, which means for the banks that the credit default risk increases with increasing age of the customer. As a result, some lenders are generally unwilling to lend money to clients aged 65 or over. By contrast, other banks have adjusted to the average increase in life expectancy and therefore have no problem lending customers until the age of 70 or 75, for example. Sometimes even a special loan for pensioners is offered.

The loan for pensioners – sometimes without Pearl

The loan for pensioners - sometimes without Pearl

Whether or not a loan is given out to retirees usually does not depend on income, as is the case with other clients, because pensioners generally have a secured income in the form of a standard retirement pension. Therefore, the crucial criterion for lending is often the age of the customer. Furthermore, a loan for retirees is often characterized by the fact that the possible loan amounts are much more limited than if the customer were an employee. Loans for retirees are therefore often awarded only up to an amount of 5,000 or a maximum of 10,000 euros. It can happen, of course, that retirees have a negative entry in the Pearl. In this case comes as a financing alternative basically only the loan without Pearl in question, which is sometimes awarded to pensioners. Due to the double risk, namely the possibly negative entry in the Pearl and the increased mortality risk, it is usually the case with a loan for retirees without Pearl that the borrower has to provide security.