Borrowing money for seniors is becoming easier. The options for taking out a loan as a person over 60 have been greatly expanded. That is a favorable development. But what exactly is it if you are already retired and want to borrow money? We list the options for you.
Take out a new loan after your 65th birthday
It is possible that you suddenly need extra money for a longer period. For example for a stair lift or adjustment in your bathroom. A loan can then offer a solution.
Borrow with retirement income
Borrowing with a retirement income is possible, but not with every lender. Lenders apply a maximum age for applying for a loan. The maximum age has recently been raised to 74 years. A condition is that you then pay off the loan within 5 years.
Factors that play a role in providing a loan
In addition to the level of your income and the maximum age, the following factors are also important. Such as the living situation and your housing costs, but also your family situation and a negative ABC registration.
Personal loan for seniors
Many banks offer a special senior citizen loan. This is often a personal payday loan. The conditions of this loan vary per provider. With a personal payday loan you borrow a fixed amount. The term, the interest and the monthly amount are fixed for the entire term of the loan. So you know exactly where you stand.
The consequences of retirement for your current loan
Have you already taken out a loan and taken out well before your retirement? When you retire, the monthly costs of your loan do not change automatically. However, your income is considerably lower after your retirement date. Take this into account and seek advice from an adviser to take timely measures to be able to repay the loan (early) on time.
Calculate how much you can borrow
A personal payday loan comes with fixed monthly charges. Find out for yourself how much of your current retirement income you can spend in order to be able to continue paying off the loan monthly. With this handy calculation tool you can easily calculate how much you can borrow in your current situation.