Loans

Loan for a pensioner – do banks have a special offer for seniors?

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Posted By Karen Castillo

The demographic trend leaves no room for illusions: the number of seniors is increasing from year to year, while it will be increasingly difficult for young people to earn money to cover their pensions. The situation is not very good right now. According to the data of the Good Lender, collected in the InfoSenior 2019 report, 9 million retirees constitute 23.2% of the whole society.

Unfortunately, many of them cannot count on decent benefits. The average pension is only USD 1,800 net, and more than half of the pensioners still financially support their children and grandchildren. To supplement the home budget, seniors can take advantage of consumer loans. According to statistics, 28% of them are already using this option.

Special loan for a pensioner

Special loan for a pensioner

Pensioners are a special group of bank customers. On the one hand, they achieve stable and reliable incomes, which speaks in their favor, but on the other, the vast majority of them are at the age which is a potential risk factor for the institution. It is he who decides that some banks do not offer this type of loan at all, while others make the amount of the loan dependent on the age of the borrower. It may happen, therefore, that a person over 75 years of age, despite high incomes, will not receive the amount requested, while the younger pensioner, even those receiving a lower benefit, will be approved by the bank.

Who can count on a loan for a pensioner?

Who can count on a loan for a pensioner?

Age is not everything. In addition to it, standard factors, which are subject to the bank’s assessment, will be of great importance, i.e. the amount of income generated and the previous credit history. In this case, however, seniors can count on keeping formalities to a minimum: most institutions will assess their creditworthiness on the basis of a retirement pension or a decision to grant a benefit. Some may require a set of certificates issued by ZUS, but obtaining them should not be a problem. Seniors who have other obligations, including loans and installment loans, may have problems obtaining a loan.

Cash loan for a pensioner at Lite Bank

Cash loan for a pensioner at Getin Bank

Lite Bank has prepared a special offer for seniors. Under it, people who receive a minimum benefit of USD 850 net can apply for funding in the amount of USD 1,000 to 150,000 and spread the repayment over a period of three months up to 10 years. An additional plus is the option of choosing a specific repayment day for subsequent installments.

A cash loan for a pensioner is becoming an attractive proposition both for customers who are looking for a quick injection of cash to meet their current needs and for those who want long-term financial support. However, its biggest downside is its high interest rate (APR 21.4%). It should also be remembered that the creditworthiness assessment will have a decisive impact on the amount and terms of repayment of the liability.

Cash loan in Best Lender

Cash loan in PKO BP

Best Lender is another bank that declares a special approach to retirees. Although the offer does not include a product addressed specifically to seniors, they can take advantage of a standard cash loan. This option is supported in particular by the quick procedure of processing the application and transferring funds (they can reach the account even on the same day). However, the repayment can be spread over a period of 2 to 96 months, applied for a 3-month credit holiday and repaid the obligation earlier without additional costs. APRC is 15.98%. However, the offer only applies to the bank’s customers.

Cash loan in Good Finance

Cash loan in Santander

You can also take out cash loans for pensioners at Good Finance. The high interest rate (APRC 20.89%) compensates for the simplified procedure of applying for the benefit and numerous possibilities of withdrawing funds – it can be realized by transfer, in a branch or by postal order. The bank also offers the option of specifying the installment amount. To apply for a pensioner in Good Finance, you must prepare one of the following documents:

  • decision to grant a pension;
  • decision to adjust pension benefits;
  • one of the last 3 pensions of the pension.

Cash loan in Agree Bank

Cash loan in ING Bank Śląski

Agree Bank also declares its willingness to grant loans to pensioners. The loan may relate to a sum of USD 1,000 to 200,000 without specifying its purpose, with a loan period of up to 10 years. Importantly – the offer applies not only to current customers, and the borrower can choose the date of repayment of subsequent installments. The real interest rate is 19.72%.

Cash loan in Cream Bank

Cash loan in Crédit Agricole

Cream Bank offers similar loan terms. APRC is 16.07%, the repayment can be divided into 120 installments, and the maximum amount applied for was set at USD 255 550 including costs. To receive funding, pensioners should submit one of the following documents:

  • last proof of payment of benefits (e.g. photocopy of the last payment slip),
  • photocopy of the last adjustment or decision to grant the benefit.

Loan for a pensioner – it is possible

Loan for a pensioner - it is possible

Although many retirees are afraid that they are deprived of a chance to get a cash loan, in fact, finding the right offer is not so difficult. Admittedly, the only loan addressed directly to pensioners is the high APRC cash loan for a pensioner at Lite Bank, but many other institutions look favorably on this social group and allow it to use standard consumer loans.

However, it should be remembered that the amount of the proposed financing and repayment conditions will be primarily influenced by the client’s age and creditworthiness. Each case is considered individually and it is worth getting to know a personalized proposal before making a decision about affiliating with a particular bank.

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