Loan for pensioners from 70On December 2, 2019 by Cameron Floyd
Even at the age of seventy, pensioners need loans for purchases or for unexpected expenses. Banks licensed in Germany or another EU country generally do not specify a maximum age for lending, since such a measure would be considered age discrimination. For this reason, banks state an insufficient credit rating instead of age as the official reason for rejection.
Lending for a pensioner over 70 through a commercial bank
In fact, income is rarely the reason for refusing an application for a loan for pensioners aged 70 and over, because today’s retirees mostly receive a sufficiently high statutory pension. This is often supplemented by company pension schemes and the benefits of a private pension fund. If the statutory old-age pension is low, applicants for a pension from the age of 70 choose a financial institution whose household accounts include the income from a private pension insurance, even if this is paid out every three months.
The increased credit risk from the possible death of the elderly credit customer during the term cannot be dismissed out of hand. With a loan for pensioners aged 70 and over, this risk can be offset by taking out installment protection insurance or providing a guarantor. A guarantee is generally considered to be harmless if it is only effective in the event of death and the amount is secured by the expected inheritance.
Borrowing for pensioners aged 70 and over as personal loans
An alternative for seniors using the Internet is the privately taken out loan for pensioners aged 70 and over. For the loan, the applicant describes the reason for his loan request as well as his personal situation. He makes the application online on a platform for brokering credit between private lenders and loan seekers. The operator of the website supplements the information with essential data regarding the creditworthiness of the applicant. All information remains anonymous, since only the website operator knows the contact details and the bank details of its members and is responsible for the technical loan processing.
In the banking law sense, a licensed commercial bank grants the requested loans. However, the credit decisions are only made by registered private lenders. Many of them make social decisions and sign the desired loan for a pensioner aged 70 and over, precisely because conventional commercial banks often refuse to lend.