Pensioners receive a regular income in the form of the monthly pension. For example, a study carried out by the German Institute for Economic Research (DIW) has revealed that the current over-60s spend USD 316 billion a year – one third of total private consumption in Germany. However, the so-called Silver Ager try to get a installment loan for retirees, many are facing major problems: Even the installment of a food processor is over 70 -year-olds often not granted – despite regular income.
It is still the case that not all banks take account of the increase in German life expectancy to more than 80 years: in general, pensioners over the age of 70 still have sufficient time to pay off loan amounts. Until some time ago, the installment loan for retirees was only possible in extreme exceptional cases – the same incidentally, often happened when a pensioner wanted to open an account. The reason: A higher age carries a higher risk of death – that’s what banks and banks want to avoid. In addition, any bank or credit institution may itself decide on age limits in relation to the granting of loans.
With collateral greater chances of an installment loan for retirees
Meanwhile, however, a rethinking has slowly begun: So there is no longer the basic impossibility that pensioners get a installment loan. Many credit providers, in addition to growing life expectancy, consider that regular income, such as pension, is the ideal way to repay a loan;
This is probably due to the economic crisis and the concomitant dwindling security of permanent jobs: the pension is transferred each month, there are no problems with impending unemployment in pensioners, as well as no loss of income in case of illness.
Especially for retirees with above-average income, the chances of an installment loan for retirees are good, but other collateral have a favorable effect on a loan approval: Here, for example, real estate such as a condominium or a house to mention, including a long-standing life insurance as safety. The more collateral a retiree can provide, the better it is to negotiate interest rates. In many cases, credit providers still demand an expensive so-called residual debt insurance (a type of term life insurance) when concluding a loan.
Children as guarantors
Retirees are demonstrably more reliable than younger borrowers in terms of paying credit installments – but in many cases retiree installment credit is only granted if their own children are prepared to step in as a guarantor. Many times the children have already applied for the credit for their parents, which they then pay off – it is just the easiest way to get to a loan from a certain age, although that is rather unpleasant for many retirees.
The search for the installment loan for pensioners
With the Internet, new opportunities have opened up in the credit market: It is also often easier for retirees to come to an installment loan for retirees on the Internet than offline, so to speak. In addition, one can also inform about the possibility of a private installment loan for pensioners, as offered for example on the brokerage platform smava. Here, the age question often does not matter much.