Loans and credits for retirees are undoubtedly an interesting topic, especially since people from this age group are often convinced that the offers of banks or loan companies are not available to them. Is it true? Absolutely not! Currently, almost every bank operating on the Polish market offers solutions such as a loan for a pensioner, although most often we do not deal here with a separate sector of the entire offer. Also in the offers of many today’s loan institutions we will easily find options such as a loan for a pensioner.
What will turn out to be the more beneficial solution: non-bank loans for retirees without age restrictions or consumer loan in a bank? What requirements and restrictions should be taken into account with regard to both of these groups of credit products? Let’s take a closer look at this issue and try to answer the above questions.
Loan for a pensioner at loan institutions
An alternative to bank loans will of course be solutions such as a non-bank loan for a pensioner. Here, however, it should be clearly stated that only some of the institutions present on the market provide loans for pensioners without age restrictions. Most often, the loan institution in the documentation provided provides the lower and upper age limit of the potential client, e.g. minimum 21 and maximum 75 years. Of course, however, there are also companies that have a different policy in this area, i.e. they do not set any upper age limit.
How can the client know if the offer of a given loan institution will be available to him? Of course, it’s worth reading the regulations and prospectuses posted by loan companies on their websites. Information on any age limits can often be found in the tabs titled Questions & Answers.
However, will the loan for a pensioner in a loan institution differ in terms of its terms from the loan for younger customers? It depends. In the case of payday loans, i.e. quick loans with a short repayment period, the borrower’s age will not matter if, of course, we meet the general requirements of the lender. The situation may look slightly different when it comes to long-term installment loans. In this case, the mechanism may look similar to bank loans, i.e. the lender can offer retirement-age financing with a shorter repayment period.
It is worth emphasizing that loan institutions provide services such as a loan for pensioners without major problems. What’s more, in relation to the non-bank offer, the mere fact of having an annuity can determine the positive assessment of our creditworthiness, which is a significant difference compared to the offer of banks.
Loan for a pensioner in the bank: what is worth knowing about it?
As already mentioned, contrary to current stereotypes, banks also provide funding to retired people. It should be borne in mind, however, that although purely theoretically a loan for retirees without age restrictions in a bank usually does not constitute a separate part of the offer, the conditions finally offered to a customer in retirement age by the banking institution may differ slightly from the conditions that a younger customer would receive.
Of course, the differences will most often relate to the duration of the contract. For example, some banks offer consumer loans with a maximum repayment period of up to 11 years. However, for a person aged 75 or 80, it may not be possible to obtain a loan for such a long period. It simply results from the fact that the bank, before granting us financing, not only estimates the current creditworthiness but also possible difficulties with timely repayment.
At the same time, it’s worth remembering that a bank loan for people over 80 will always require the same formalities that are generally associated with bank services. Of course, I am talking about assessing creditworthiness and history in databases such as BIK, BIG or KRD.
The specifics of a bank loan for a pensioner looks slightly different. Here, the age criterion will most likely not constitute a significant obstacle, but the problem may be, for example, too low annuity.