Seniors are welcome as buyers, but loan for retirees is a sensitive issue. The contribution deals with the impending credit crunch of young and old pensioners and the real credit opportunities in old age.
Loan for pensioners – how does the credit crunch come about?
Senior citizens enjoy the best reputation of all ages as borrowers. Nevertheless, access to credit opportunities is increasingly restricted. Two major hurdles accompany pensioners in their loan search. Despite the increasing life expectancy, many credit institutions are unwilling to raise the age limits or to forego them altogether.
The second and much more pressing problem is the increasing impoverishment of pensioners. The prices rise constantly, but less and less of the pension remains in the wallet. The garnishment table changes along with the rising prices. The non-attachable allowance has meanwhile increased to 1,050 dollars in monthly net income. In western Germany, this amount is offset by an average net pension of less than 1,000 dollars.
Little scope for the loan officer
Although seniors are considered safe repayers, with an income below the seizure allowance there is little room for the clerk to make a decision. He is only allowed to grant a small overdraft facility without attachable portion of income or other collateral, for example a guarantor.
However, even the pensioner’s disposition is severely restricted or even completely eliminated at an advanced age. In the event of death, the credit institutions fear that they will remain seated on the overdraft facility due to the loss of the death benefit.
If you do not want to lose your financial flexibility entirely, you can ask the children for help or look for alternative offers. Instead of overdraft facility, a microcredit via Vexcash could cover the flexible ability to act quickly with small credit requirements. In the case of a micro loan for pensioners with a term of 30 days, even a mini pension is sufficient as proof of income. A mere $ 500 monthly net pension must be proven.
Installment loan for pensioners – without age limits
Independent borrowing from any bank is hardly possible for larger investment needs. At specialized banks, the cost of credit shoots well beyond the scope of ordinary loans, normal banks refuse a loan for pensioners.
The alternative to the bank is the loan from private investors via Lite Lender or Cream Bank. Both credit portals offer pensioners fair credit opportunities with no age limits. For private donors, a loan for retirees is a respected loan request. Seniors are the safest repayers and therefore very interesting as borrowers.