A person who receives a pension is not in the best income situation. The low amount, usually granted for a limited period, is not well perceived by banks. How do you get the largest amount of credit , paid for as long as possible? We invite you to read about lending to pensioners.
Lending to pensioners by banks
Seniors are a large group of borrowers. Despite the poor perception, banks have relatively high confidence in them, because the repayment of loans by older people is definitely better than by younger years. The amount of social pension in 2019 is around USD 1063. Such remuneration taken into account by banks will not cause high creditworthiness , but pensioners can get up to USD 30,000 in bank credit. An installment spread over 10 years will result in convenient repayment possibilities.
Purpose of loans obtained by pensioners
Contrary to appearances, the most common purpose of crediting pensioners is not medicine or ongoing fees. Relatively the most common reason for applying for a loan from people on a disability pension is to help the family. Indebtedness to renovate an apartment or house is also popular. Cash loans provided by the bank have no specific purpose. The borrower can use the obtained loan for any desired purpose.
Which banks lend to pensioners?
Most banks have loans for pensioners. The most important is achieving the minimum income required by the bank. Income minima start at the level of 600-700 dollars, end up at 1.2 thousand dollars. The overwhelming majority of banks accept revenues of around USD 1,000.
An additional factor when crediting pensioners is the borrower’s age . It is worth remembering the available maximum age of the person applying for a loan in a given bank. Banks usually specify the maximum age that falls on the borrower’s last repayment installment.
The last no less important factor is the period for which the pension was granted . Some banks will be able to offer a loan for the duration of the annuity, others after demonstrating the continuity of the annuity, its renewal will be able to grant loans for up to 10 years.
Pension credit to the pensioner and credit history
Obtaining a bank loan for a survivor will certainly be easier if the borrower already has a credit history . Each timely regulated installment improves history, hence banks will be willing to borrow more money on better terms.
It is definitely better to apply for a loan from banking institutions. Loan companies are very happy to give loans to pensioners, but later pensioners have big problems with paying them back. It is recommended to ask an experienced credit broker for help. A professional credit broker will definitely help us get the cheapest available loan solution.