Taking a loan from a bank is associated with the need to meet many requirements and pass verification. Frequently asked questions from credit applicants are : Is my age appropriate? Is the type of income earned by the bank? Are my earnings sufficient? Let’s remember, however, that not only young and middle-aged people decide to take credit. There is also a great interest in additional financing for people who have finished their professional careers and have retired. We know that we must be of legal age to receive a bank loan. However, is there an upper limit beyond which banks will not grant us a loan for a pensioner? Can we count on a loan for pensioners without age restrictions? How much funds will we receive? Is there such a thing as a mortgage for a pensioner?
Loan for a pensioner
Let’s start with the fact that retirement does not mean that the doors of financial institutions are closed to us. A loan for a pensioner is a product offered by many banks. All you need is your ID card, ID card, the last impact of the pension on your account or confirmation of postal order, decision or valorisation of the pension and we can apply for a loan. However, as with any bank loan, we will have to demonstrate creditworthiness at the appropriate level for a pensioner loan. The bank will always verify the amount and source of income as well as credit history. In the case of credit for retirees, we can count on a simplified procedure and a quick credit decision, due to the stable source of income, which is the pension. In the case of a loan for a pensioner, the grant of the loan, its amount, as well as the loan period will depend on the age of the borrower. It is immutable that the financial institution verifies whether the potential customer will be able to repay the liability for which it is requesting. In most banks, pensioners between the ages of 70 and 75 can get a loan of around 8 years. What about older people? Can we get credit for having retired 80 years?
Loan for a pensioner aged 80
Banks value reliable and trustworthy customers. In the bank’s assessment, persons employed under an indefinite employment contract are highly scored. When it comes to credibility, retirees are also in a good position due to stable and regular income with systematic inflows to the account. We can safely say that it is a more reliable and stable source than an employment contract. If we have been granted a pension, it will be paid for the rest of our lives, in a certain amount, and certainly not lower. The employment contract, even for an indefinite period, can be terminated and the amount of remuneration reduced. In the case of retirement, this risk does not exist. Studies show that it is this group that can boast of diligent performance of concluded contracts and timely repayment of its obligations. Some banks do not set an upper age limit and make the granting of credit dependent, primarily on the amount of income.
Loans for retirees without age restrictions
Banks are not the only institutions that can provide us with additional funding. There is also a non-bank market where we can count on loans for pensioners without age restrictions. In this case, the approach of non-banking institutions is less stringent. In most establishments, a loan application for a pensioner will be processed regardless of the age of the lender. Non-bank institutions will also usually not require additional collateral. The most important thing for loan companies is that the borrower has a stable and reliable source of income – in this case retirement and belongs to a group that reliably fulfills its obligations and regularly repays its obligations.
How much and where will a pensioner borrow?
As with any financing, the matter is individual and closely related to our financial situation. So regardless of whether we apply for a pensioner, a positive decision depends on our individual financial situation. However, it remains unchanged that we have to prove our creditworthiness at the bank every time. On the other hand, in a non-bank institution, the requirements are more liberal and depends solely on the lender. However, if we pass the verification procedure, we can count on a cash loan for a pensioner in the bank in the amount of up to PLN 200,000. On the other hand, in non-bank institutions, the verification process is easier and faster, however, the average loan amount is only a few to several thousand zlotys, due to the much shorter loan period.
Mortgage loan for a pensioner
In this case, the answer is YES. A pensioner can also apply for a mortgage at a bank. The amount of the mortgage depends on the amount of income. The loan period, in turn, depends on the age of the borrower. When applying for a mortgage for a pensioner, we can be sure that the loan period will be much shorter than that offered to people aged 25-45. Hence, monthly installments will also be higher. Moreover, due to the age of the borrower, the bank may make the granting of a mortgage a pensioner conditional on purchasing additional life insurance, making a higher own contribution or taking a loan with another person (co-borrower).
As you can see, a loan for a pensioner or loans for pensioners without age restrictions are solutions that operate on the finance market. If you, the Pensioner, are wondering if it is worth applying for a loan for a pensioner, you must know that age is not an obstacle.