Seniors are sidelined at the banks. Many older people have substantial assets. In addition to a good and sufficient pension, there is often real estate or other security. The approval criteria of the German banks would have actually met senior citizens.
Nevertheless, banks do not like to see seniors as customers. Wealth doesn’t matter here, but age. At 75, the risk of death or nursing care seems too high for the banks and therefore withdraw from the lending business with the elderly. However, some of these banks have recognized the change and are also offering a loan for 75-year-olds. People are getting older and more fit and agile too.
The loan for 75 year olds
The elderly can no longer be compared to that of the past. People aged 75 and over are still physically and mentally at the top. Projects are still being planned and some want to fulfill their wishes. A loan for 75-year-olds is often asked for age-appropriate living, but some want to go on a long trip or buy a new car.
That would all be possible, because today’s seniors are the best debtors. A study found that seniors pay their obligations on time and correctly. Added to this is the freedom of contract applicable in Germany, which allows every donor to act according to their own guidelines. It has to be said that nobody has the right to a loan.
However, there are a few stumbling blocks and these are the amount of the pensions. A possible loan from special providers where the costs are so high that only the well-off pensioner can afford a loan. If you have an average pension of $ 980 a month, a loan is often outside your financial strength.
The prospects and the guarantee
If the loan for 75-year-olds is now urgent, for example because an urgent age-appropriate renovation of the apartment has to be carried out, the easiest way for a loan for 75-year-olds to be called a guarantor. A solvent and young citizen could take the credit risk. As a rule, children or grandchildren can manage the credit risk.
A guarantee still needs to be carefully considered, even if it is the closest relatives. According to how high the loan is still approved, the guarantor’s financial position should be considered. If the borrower dies or becomes a care provider, the guarantor must have sufficient financial means to bear the financial burden. The bank will therefore examine a guarantor exactly to what extent his credit rating allows a guarantee.
If you don’t want to burden your family with your financial problems, you can look for a private investor. There are portals on the Internet that are helpful in loan brokerage, especially in difficult cases. Private investors lend money from private to private. There is no age limit for the loan attempt. Seniors are highly valued by investors because they meet their financial obligations correctly.
A credit loss is hardly to be feared even with a low pension. Today’s generation of seniors can handle credit and they can focus on the essentials and useful in spending. Credit Bureau, for example, has a peak of 98% in terms of repaying senior loans. Actually, there can only be problems, especially with the term, when the borrower dies. But if the term is not too long, this credit hurdle can also be overcome.
A loan for 75 year olds does not always have to be an installment loan. Some senior citizens have had their disposition shortened because of their age. If an unexpected bill comes in, the senior cannot react flexibly.
So-called short-term loans for 30 days without an age limit could also help to solve the problem. There are providers who grant such microcredit to seniors. Here, a pension of 500 USD already counts as proof. However, a micro loan that shows a low loan amount must be repaid within 30 days.
For residual debt insurance, which is often a mandatory insurance for a loan for 75-year-olds, the senior should know that this type of insurance is extremely expensive, especially in older age. The residual debt insurance can become so high that the loan can no longer be paid by the senior. In addition, many insurance providers no longer include many older people in their contracts. If the loan absolutely has to be taken out and the bank makes a commitment dependent on residual debt insurance, the senior should choose residual debt insurance from an independent company. Most of these are somewhat more advantageous than those at the banks.