Anyone who has been a welcome borrower at his bank at the time of his professional life will find it is no longer quite easy to get a loan for retirees. The fact that a consumer is no longer in working life does not mean that he does not need a new car or that he has to carry out necessary repairs at his home. There are plenty of reasons for taking out a loan as a pensioner. But the banks have their own view of things here.
Retirees and pensioners can also find a loan on favorable terms in our loan calculator.
Comparison – loan calculator
Here you will find our free loan calculator. Serious loans for pensioners (even with low pension) in comparison.
The use is simple:
- Select desired loan amount.
- Select the repayment term.
- Specify a purpose. (optional)
After clicking on “recalculate” the credit comparison is now adjusted to your entries and automatically sorted by the amount of the effective interest rate in ascending order. With a click on “continue” you can immediately online a free and non-binding loan request to the respective bank.
Age limit varies
Many banks set a retirement age limit on a loan for retirees, up to which a loan is granted. They simply fear that the borrower dies and the loan is not repaid. This is especially the case when it comes to a long-term loan. The age limits are not set uniformly by the banks. Some institutes are no longer providing loans to 65-year-olds, others have a maximum age of 67 or 72 years. It often does not matter how the loan can be secured for retirees. If the age limit has not yet been reached, it is usually sufficient to assign the pension, analogous to the salary assignment for employed persons. Additional collateral means increased staffing as the collateral needs to be tested and assessed. However, this does not fit into the credit process, which today is largely automated even with branch banks. More personnel costs mean more costs, which in turn reduce the margins on the loan.
Loan for pensioners possible
Students who need a loan often rely on a parent with appropriate income to either sign the loan agreement as a co-applicant or to act as a guarantor.
If the parents are too old to borrow, the picture turns around. Now the children are asked to act as co-applicants or as guarantors if they earn a living. In this case, the banks go beyond the age limit and forgive the loan.
Loans from private to private
Another alternative to getting a loan as a retiree or retiree is the private mortgage brokerage platform. Anyone looking for a loan can submit their loan application here under a pseudonym. To be successful, the borrower must describe his financing project as precisely as possible and tell the potential investors as much as possible about himself. A private-to-private loan does not mean that the borrower’s credit rating does not matter. The platform operators, like banks, conduct a credit check and then categorize the applicant in a credit rating. This in turn has an impact on the interest rate that is paid. The loan will be disbursed when enough funds have been found to fund the full amount. Partial financing is not possible.
House and basic security
Of course, a house as a basic security makes it much easier for retirees and pensioners to get a loan from a German bank. Our loan calculator at the top of this page takes these cases into account.