Wanting money to buy a car, travel or start a business has no age limit, but to apply for a loan, is there an age limit? This question is accompanied by another question, are there loans for retirees? In today’s post, we want to answer that question, read on and know the options for the elderly.
Age, an impediment to request a loan?
There is a frequent doubt when applying for a loan. Will you accept my application? This question is around people of a certain age, especially those over 50.
This happens due to the requirements that lenders require to apply for a loan. Age is one of them since entities must ensure the return of money by the borrower. Below we show 3 elements to evaluate for the approval of a loan.
At the time of studying the request for a loan, the entity calculates the age that the borrower will be at the end of paying the debt. This is because after 70 years according to statistics, the death rate is higher. Also, we can say that this rule is not entirely strict since there are options that allow retirees to obtain a loan.
One of the most important points to evaluate when approving a loan is delinquency history. With this, the lender can determine whether a customer is profitable or not. The online loan market has entities that grant loans to people who appear on the ASNEF lists. In general, they are allowed for applications below $ 1,000.
The lenders carry out an analysis of the financial history in order to assess the risk of default. The analysis evaluates the liquidity of the client, the monthly income, and the payment of credits (if it is the case). This information will help the lender approve or deny a loan.
Are there loans for retirees?
The market for financing products is experiencing a moment of expansion. This makes you have many loan opportunities. Retired people have characteristics that make them a profitable customer, and it is their fixed monthly income. Therefore, there are loans for retirees. For loans under $ 1,000, the application is simpler and easier to approve. But when we talk about higher quantities, the requirements are more demanding, these are some of them:
The person who undertakes as collateral will be responsible for paying in the event that the borrower fails to pay. An endorsement is usually a family member or person with demonstrable financial solvency.
Life insurance / Amortization insurance
One of the most common backups is life insurance. This serves to protect the interests of family members in case of death, as it will be responsible for canceling the debt acquired.
Guarantees (car, housing, etc)
When a loan of a high amount is requested, a property or a car, among others, may be required as collateral. In this way, the lenders can repay the debt in case of default.
The maximum age established is 75 years. The age is stipulated at the time of paying off the loan, but not upon request.
In Good Credit Loans, there are loans for retirees, thanks to its comparator that has the best options in the online market.