A loan for pensioners over 70 is unfortunately not a matter of course. The path to credit often poses great hurdles for seniors. The article reveals more about the problems and solution options for senior loans.
Loan for pensioners over 70 – a problematic loan request
A loan for pensioners over 70 should be taken for granted given the increasing life expectancy. Unfortunately, word has not yet got around to the credit institutions that “the Germans” are getting older. Although there are no legal age limits for lending, the hurdles of in-house regulations make senior loans difficult. Above all, lenders fear the risk of illness and death of the borrower.
Remedial debt insurance could help. Nevertheless, this solution is not provided for in the regulations at many local banks. There are evasion options through the change of provider. But even then, lending is never considered safe.
Many loan providers don’t even bother to check loan applications for retirees over 70 years of age. The background is less the age than the type of income. The amount of a pension cannot be compared to a pension.
Poverty risk prevents lending
Pensioners have no lobby. Unlike an official, the politicians in Berlin are not in the “boat” of retirees. A personal later risk of poverty plays no role in their decisions. Your pensions are extremely high and are subject to the requirements for pensions. The result is a gross mismatch between average pension payments and average pension.
An average pension, Eastern and Western pensions combined, amounts to around 1,100 USD according to the German pension insurance from 2012. The difference up to the attachability is thus 50 USD. In addition, with many old pensioner couples, usually only one receives an adequate pension. The other partner took care of the household and did a part-time job, as was traditionally required. The spouse therefore does not receive his own pension in many pensioner families. This raises the limit of the non-attachable family income to 1,430 USD.
The family income is thus far below the limit that enables lending at all. If one of the partners were to become ill or in need of care, a proper loan repayment can no longer be assumed.
What are the credit opportunities for 70-year-old pensioners?
Only the credit opportunities for people with poor credit ratings remain for pensioner loans above the age of 70. The loan offers of various credit intermediaries would be possible without outside help. However, this credit option requires a good pension and perhaps even unencumbered property ownership. There are clear restrictions on the amount of the loan. In addition, the offers become more expensive due to risk interest, agency fees and residual debt insurance.
Another option would be to ask the children for help. With a solvent guarantor or co-applicant, the pensioner loan can be used extensively and with almost every provider.
The private credit market also offers fair credit opportunities via one of the portals on the Internet. The high repayment fidelity of the senior citizens, certified by Credit Bureau with 99 percent, improves the prospect of receiving the loan for pensioners over 70 from private.