It is not forbidden for retired people to have projects. You may say that the savings of a lifetime will not be enough to fulfill a dream that is important to you and that at your age, banks are a little more reluctant to grant credit. Do not be discouraged, various online banking institutions offer credit solutions tailored to your needs and are usually simple and fast.
Senior loan: the conditions
One of the first criteria identified by banks prior to the granting of a loan relates more specifically to repayment capacity. So, it is not so surprising if one wonders how old it is for us to borrow. In the case of consumer credit, there is no problem since it is generally subscribed in the short term. On the other hand, various conditions will be more emphasized with a mortgage. That said, it is possible to find specific credit proposals to realize your dreams.
Apart from the fact that a borrower has to prove solvency (having stable income, no risk of unemployment, no real estate loan to repay, etc.), he must also be less than 70 years old at the end of the expected repayment. of his consumer credit. That said, exceptions can be considered.
Financing solutions for seniors
A senior loan can give shape to many projects. In the case of a consumer credit, he can help pay for a trip abroad, finance some interior or exterior construction work, carry out various leisure activities, acquire various equipment, etc. Would you like to buy a boat? Do you want to go on a cruise? These are just as many possibilities that can trigger the demand for a loan. Those who want to engage in a rental investment can also consider applying for a home loan. Those with housing have the right to apply for a mortgage loan or mortgage life loan (the borrower can enjoy his property until his death and pay no refund).
It is essential to remember that seniors can benefit from all forms of loan available. To put all the chances on your side, it is recommended to build a solid file.
How to obtain a retirement loan?
The steps to acquire a senior loan are no different from a conventional loan. It suffices to meet the required criteria, to mention only the capacity of repayment and the capacity of indebtedness. Like a lender in the workforce, a senior must provide various supporting documents before having the desired loan, with the exception of death and disability insurance. Some banks may indeed request this other voucher to complete the file. However, the senior borrower is entitled to refuse this request.
The risk of non-repayment is one of the reasons that banks are reluctant to grant a loan for retirees, but it is possible to have some subject to conditions. In addition, the interest rate for senior credit can be a little higher than an ordinary rate. However, to find a cheap senior credit, it is better to go through a comparator and thus have a wide choice in terms of loan proposals.
Senior loan: the factors that can influence its cost
In addition to the interest rate, you should not forget that various fees may be taken into account, which may influence the overall amount of the amount to be repaid. Nevertheless, in the case of consumer credit, these miscellaneous expenses are not particularly significant. On the other hand, for the case of a mortgage, some factors may be involved. One can mention in particular the duration of the credit. The shorter repayment terms generally imply a lower rate compared to those that are a little longer. This can be explained by the decrease in the risk of non-reimbursement incurred by the lending institutions. If you also offer guarantees, you could benefit from a lighter rate. This can also apply if you choose to make a personal contribution. In any case, it is important to know how to specify your project, to compare senior loan proposals and to negotiate certain conditions, if necessary.