Older citizens experience again and again that they fail at the banks with their loan requests. Many do not even know what is happening to them, after all, they usually have a good credit rating and a secure pension. However, the problem is not the lack of security, senior citizens are simply discriminated against on the basis of their age. The banks fear that the borrower will die prematurely, and it becomes more difficult to take out a loan from the age of 60. At the latest from 68, many banks are considered too old for financing. At best, a short loan is then granted over a maximum of three years at a comparatively high loan rate. ruidomain.com has more details
Age discrimination in lending
According to the law, banks are free to choose who they grant a loan to and who they don’t. Even if they reject a loan application based solely on the age of the applicant, the rejected party cannot rely on the Equal Opportunities Act and can file a complaint against the rejection. Those affected are well advised to defend themselves in a personal conversation with the branch manager. Sometimes it helps to knock on the table with a fist and refer to the longstanding customer relationship. A reference to a paid-for home or ongoing life insurance can also be helpful. If nothing helps, all that’s left is special loans for seniors. They are usually offered by direct banks on the Internet and are issued regardless of the age of the prospect.
What are senior loans good for?
Senior loans are nothing more than normal installment loans for older people. If you want to conclude such financing, however, you have to dig deeper into your pocket for processing fees and loan interest than with a normal loan. The banks have the higher credit default risk properly paid for. Sometimes you can solve such problems within your own family, for example when the adult children take out the loan and pass it on to the parent generation.