The loan for retirees over 65 is not as easy to obtain about the banking industry as one might suspect. For seniors are by no means regarded as ideal customers by banks, as their health situation and old age represent an additional risk, which makes it difficult to issue a loan.
In general, however, one has to differentiate between the incomes of persons over the age of 65, because the pensions shown in Germany can vary considerably, which of course also greatly fluctuates the chances of success of a loan. If the pensioner has a very high or at least above-average pension, loans with a very short term and consequently higher monthly installments can be chosen.
The bank considers this circumstance, but of course also the high pension, to be very positive, because a death within the next 12 or 24 months is much less likely than a credit for 7 or 8 years. Although older people have a secure pension, spending can vary widely. If an unpleasant health situation reveals itself, the pensioner can quickly incur high costs for care and medicines. Of course, this also reduces the scope for monthly installments.
Life and experience in old age
The dream of owning a cruise or a holiday in the south irritate many elderly people who do not just want to spend their everyday life in retirement at home. While this circumstance is certainly understandable, banks must of course still secure their credit for pensioners over 65 years. If this is actually issued, the pensioners usually have a high pension or it is just a micro-loan with a short term.
The simple rule of thumb is that the lower the runtime, the higher the likelihood that the loan will be issued. Direct banks on the Internet differ here less in different age groups than various major banks, so that retirees still have the opportunity to borrow. Very positive is when the pensioner can use a guarantor in the loan agreement.
This is used with appropriate pension less to cover the monthly expenses and any defaults, but more in the event of death to pay off the remaining loan amount. As a result, banks will also be granted additional security, which is by no means to be underestimated, in the case of senior citizens 65 and over.
However, many pensioners are reluctant to have grandchildren or children put into a loan agreement, just as (false) pride often presents an insurmountable barrier to private-sector money lending (by the children). Depending on what the credit is needed, this circumstance is partly unavoidable.