Even pensioners may need a sum of money to meet some of their life’s needs. It can be a medical expense, a vacation, an investment, etc. For all these needs, you can apply for a loan for retirees: among other things, the pension is considered by the banks as one of the best guarantees of all time and for this reason, the request for loans from the retirees is always much faster, easier and easier. more convenient. The only hurdle may be the age limit: many banks do not grant loans over a certain age or require a life insurance policy in the event of death, to cover the amounts that would remain payable in the event of the client’s death.
Everyone needs a larger amount of money at a time, and this usually involves the sudden need for financial help. In an emergency, you need quick financial help and this will mean trying to borrow money from somewhere, and this can be more difficult than you think because of age. Many pensioners believe they cannot make a loan because they are of a certain age, or because they no longer receive a salary. But the truth is that while it may be harder to qualify for a loan when you are retired, it is not impossible.
Of course, most financial institutions and banks are reluctant to avoid giving the pensioners a loan because of their age. In addition, these institutions will often need evidence of their pension income or other financial income. People who own a property and receive an income from renting it, are often more likely to be in a favorable position with banks. Here are your loan options, and what are the banks that provide loans to pensioners:
Qualification for credit pensioners
If you are self-financed (you earn most of the income from investments, rented properties or retirement savings), creditors usually determine your monthly income using one of two methods:
Withdrawal of assets – This method considers periodic monthly withdrawals from your retirement accounts as income.
Exhaustion of assets – By this method, the creditor deducts any advance from the total value of your financial assets, takes 70% of what remains divided at 360 months.
To any of the methods, the creditor also adds the income from pensions, social benefits, annual income, and part-time work income.
Guaranteed vs. Loans unsecured
When you make a loan, the loan can be secured or unsecured. A secured loan requires collateral, such as your home, investments, vehicles or other properties. If you do not pay, the creditor can confiscate the guarantee. An unsecured loan, which does not require collateral, is harder to obtain and has a higher interest rate than a secured loan.
The Mutual Aid House of the Pensioners grants loans with a certain number of borrowers, depending on the amount requested. To get a CAR loan, you must be a member of the House and apply for a social fund. For loans two or three times larger than the social fund deposited, CAR requests a guarantee, and for much larger loans it requires three guarantors. The maximum credit period is 24 months, and the interest is withheld when the loan is granted.
Car loan online
An online CAR loan has the same conditions as the classic CAR loan, only the interest rate is slightly higher. A big advantage of this online loan is that the pensioners, who probably have health problems, do not have to move and stand for a few hours in line to get the requested amount.
The most common type of secured loan is a mortgage, which uses the home you buy as collateral. The biggest problem with a mortgage loan for retirees is income, especially if most of the money comes from investments or savings.
A car loan offers competitive rates and is easier to obtain because it is provided by the vehicle you buy. In an emergency, you can sell the car to cover the loan. If you do not pay up to 3 consecutive installments, the lender can take your car.
Loan for refinancing
A refinancing loan is designed for debt consolidation. An unsecured debt consolidation loan helps you to cover existing debts and to stay with a single loan at a single bank. In general, this may mean that you will pay this debt for a longer period of time, especially if the rates are lower. In addition, the interest rate may differ from the one you are paying now.
Unsecured loans and credit lines
Although they are more difficult to obtain, unsecured loans and credit lines do not endanger assets. Options include banks, credit unions, investor-financed loans or even a credit card with an annual percentage rate of 0%. Consider the credit card as a source of funds, only if you know you can pay it before the low rate expires.
Loan up to salary or pension
Almost everyone, including a pensioner, can benefit from a guaranteed or unsecured short-term loan. Pensioners have a guaranteed monthly income, and this is what qualifies them for a loan. These loans have very high-interest rates. You should only consider a short-term or emergency loan, and only when you know you have the money to pay it on time. If you cannot repay it on time, the interest you owe will increase rapidly.
If you want to borrow a relatively small amount of money, then the best option for you may be to apply for a credit card, because the credit limit of some cards can be quite large and can reach tens of thousands of lei. However, if you need to borrow a larger amount of money, then it is worthwhile to call the banks to find out what options are available for retirees.