Loan or the monthly installment
Loans for pensioners with low income are always a problem in Best banking. Since the life expectancy of retirees can never be precisely determined, while health status in advanced age can also deteriorate significantly at any time, loans with a longer term are a particular problem. Banks have to assume the worst case scenario, namely that the pensioner may die before the loan is paid off or that long-term maintenance costs could arise over the duration of the loan.
As a result, the pension of those affected is certainly secured, but this also becomes problematic if the income from the pension is very low. Then the creditworthiness of pensioners is often denied, which of course results in a rejection in reverse. Those affected then only have the option of adding further collateral to the loan agreement for loans for pensioners with low incomes. Since a certain amount of assets are often already available in old age, for example having your own automobile in the upper price segment or a property that has already been fully paid off, this can significantly increase your creditworthiness.
If the loan or the monthly installment can no longer be paid, the bank can seize the non-liquid assets of the borrower. The creditworthiness of loans for pensioners with small incomes can of course also be increased by means of guarantees.
Family members as security – is that possible?
Loans for pensioners with low income can be made possible by an additional guarantor included in the loan agreement. The guarantor is liable for the entire debt of the borrower and must therefore pay the loan even if the borrower dies or is simply no longer able to pay the installments. This is one of the reasons why many pensioners are reluctant to use a guarantee, because another pensioner will only slightly improve their creditworthiness, since, of course, they also have to cut back on age.
Family members, on the other hand, above all children and grandchildren, of course, have a higher credit rating because the bank does not have to assume that it will die in the next 10 years. Borrowers and pensioners are often reluctant to have a debt passed on to children and grandchildren through loans for low-income pensioners.
As a result, a guarantee is often only possible through one’s own husband or wife. Direct banks on the Internet, which can be found via a loan comparison, are also more likely to give loans to pensioners than is the case with large and house banks. Ultimately, of course, the individual situation always counts, which is why a loan application can be worthwhile, even if the chances of success are not particularly good.