Many people over the age of 50 have recourse to personal loans. To finance a project like a trip or an exceptional expense, this type of loan is ideal for all ages, including retirement.
Retirees, borrowers like any other
The personal loan is a kind of consumer credit open to all those who have a punctual need of sum of money, up to 75 000 €. The procedure for obtaining a personal credit is the same for any borrower, including if he is retired.
Banks are well aware that life expectancy is growing longer and that retired people may well have a one-time need for cash.
Older people are getting older in good physical condition, leading to increased projects and funding needs .
However, it is clear that retirees often own their homes and have greater repayment capacity than other categories of borrowers such as students or people prohibited banking .
Nevertheless, it should be noted that the credit institution may require the borrower to be insured for death-disability after a certain age. The borrower may refuse to take this insurance, but this will have consequences for the bank’s final decision.
Personal loan, a credit available to retirees
Banking institutions often tend to view senior citizens as reliable borrowers . Indeed, one of the major criteria taken into account for the granting of the personal loan is the personal situation of the borrower.
However, retirees’ incomes are stable and they have often finished paying their mortgages. Their debt capacity is therefore greater than for young workers or unemployed people in particular.
Thus, the personal loan is easily accessible for retirees and they can even get advantageous conditions, like optional insurance, low monthly repayments and therefore a low interest rate .
More flexible than another type of credit, the personal loan is also easily accessible for retirees because of its short duration. In addition, the assets of retired borrowers can serve as collateral for the lending institution.
Personal loan: a credit with no age limit
Contrary to what one might think, personal credit is not subject to any age limit . Thus, any retiree, even beyond 65 years, can perfectly claim to benefit from this loan.
However, the age taken into account by the bank is the end of credit. The statistics show that senior borrowers in retirement have generally reached age 75 at the very end of the repayment of their personal loan.
In the event that the retired borrower decides to opt for a credit redemption , the banking practices report a credit end around 83 years.