In the past, it was a real challenge for banks to get a loan despite a pension. Many banks did not want to lend because they believed that pensioners were not creditworthy. However, this view has changed, so that almost everyone can now apply for a loan despite a pension. However, there is often an age limit, so that many can no longer apply for a loan from the age of 70. The risk of the person dying during the loan period is too high for many banks.
How can I apply for a loan despite my pension?
A pensioner has a big advantage over workers. He cannot lose his job and therefore has a secure income, namely the pension payment. In addition, he should have sufficient collateral that the bank requires even with a loan despite a pension. Anyone who has adequate life insurance has very good chances when requesting a loan. A home can also serve as security if it exists.
If this security is not available, there is still a way to get a loan. In this case, for example, the grandchild, who is an adult and has a permanent job, can stand in for the loan. In addition, residual debt insurance can be taken out to secure the loan. However, this is very expensive, so it is better to resort to the other collateral.
Pay attention to offers
Especially if it is a loan despite a pension, offers should be compared with each other. Banks often offer special loans for this group of people, which are offered at low interest rates. Not only are there low interest rates, many also do not take out expensive residual debt insurance.
The offers of your own house bank should be compared with those of the direct banks on the Internet. Interest rates vary widely from bank to bank, so a lot of money can be saved. Loan offers that require a fee to be paid before a loan is paid out should be avoided. These are not serious offers.
What documents must be submitted?
The pension notification should always be included with the loan request. This tells you how much pension is paid every month, which is part of your income. In addition, the bank statements and the rental certificate should be included. If there is additional income, such as rental income or life insurance, these should not be missing from the conversation.
In addition, consent is required so that the bank can ask Credit Bureau if there are any entries. With the documents, the bank checks the income and expenses and can draw up a household bill. This shows how much money is left at the end of the month. Only in this way can a repayment rate be agreed without the applicant becoming indebted.