Today almost anyone can apply for a loan, a mortgage or a financing solution in order to meet their financial needs. Being retired or pensioner is not an inconvenience for this, only, the bank will assess conditions such as the applicant’s age or health risks when carrying out the feasibility study and the concession. Do you know what you need to be able to apply for a loan for retirees and pensioners? Well, keep reading, we will tell you!
Can I Apply for a Loan Online if I am Retired?
When we find ourselves in the situation of being retired or collecting a pension for different reasons, the first question we ask ourselves is, can I request a personal loan online in my situation? And, as we have said, the answer is yes. Of course, it is possible that the entity from which we request it ask us for some supplementary documentation and guarantees to be able to ensure that the return of capital will be carried out as planned.
What is the Maximum Age to Apply for a Personal Loan?
Age is one of the factors that is most analyzed before granting a loan, and it is one of the main risks that must be taken into account. At an older age, it is calculated that the risks of non-payment increase, although, in contrast, many entities consider that a pension is a much more reliable income than any type of payroll. Although the maximum age at which an online loan for retirees can be granted is usually capped at 75 years by the time the repayment period expires, some entities are beginning to extend it. If this is the case, certain extra guarantees are required, such as, for example, that the client acquires life insurance that covers the outstanding capital in full in the event of death or that guarantors present themselves who can take over the debt if necessary.
What Documentation Will I Need to Present to Request a Loan?
By consulting a loan simulator, we can compare and choose the type of loan that best suits the needs of each one; the maximum repayment term, payment methods, interest. Once the decision has been made, if we are retirees or pensioners, the documentation that we must present will be the following.
- Valid DNI or NIE: in order to apply for a loan it is necessary to have a Spanish residence, therefore, any identification issued by the country must be presented. Applicants who do not have it are excluded, so the passport is not an option.
- Age of majority: not only to apply for a loan, you also have to prove the age of majority to be a guarantor (18 years in Spain).
- Source of income: like the rest of the clients, the applicant must document that they have a recurring source of income, in this case, a pension.
- Supporting documents: another requirement is that the necessary supporting documents be submitted for the reasons that led to the request for the loan; reforms, purchases.
- Life insurance: as we have said, this is one of the requirements that, quite possibly, the entity will request from the retiree in order to grant the loan. The amount to be insured will be the full amount to be returned and the beneficiary, the bank itself.
- Guarantors: guarantors are mandatory if the maturity of the requested loan exceeds 75 years. Thus, the risk for the entity decreases, since, if for any reason the holder cannot continue to face the debts, its guarantors will be able to assume them.
Access to Credit for the Elderly Increases
Unlike the perception that was previously held, the elderly have become a public that increasingly acquires more facilities to access financial loans. Every time access to credits for the elderly is a reality. Although the companies that take these measures are still rare, there is a trend that is directed towards this audience. Experts have discovered that this group of people is economically active and willing to consume services and products. Different factors have made the senior population a potential for the financial sector, specifically people in an age range between 60 and 75 years. This is due to the current conditions in which various advances in technology and medicine have prolonged people’s lives. As revealed by a study by the Economic Commission for Latin America and the Caribbean (ECLAC), it is estimated that around the world some 2.5 billion adults of working age do not have access to the formal financial services offered by regulated institutions in this sector. economic activity. It should be noted that in Colombia this population group has an annual expenditure of $ 121.2 trillion, which is equivalent to 12.3% of GDP. This implies putting $ 332 billion a day into the economy, because they consume financial, health, transportation, food, communications, tourism and entertainment services.
Elderly Have a History of On Time Payments
In addition to this, older adults have a financial culture that is reflected in compliance when making payments and without over-indebtedness, which gives them access to lower rates. Unlike other population groups, older adults have consumption patterns that are easy to follow and, added to their fixed income, they increasingly become a financial potential for different entities. One of the companies that has chosen to start providing loans for seniors is Finsocial. This private financing company that claims that 45% of its clients are pensioners. Currently this company has 9,519 loans to seniors with a maximum age of 75 years. These credits represent close to $168,000 million to the financial company.
Finsocial Takes off With Success
Likewise, Finsocial reported an unbeatable dynamics in terms of financing loans so far this year. This was also reflected in the massive attendance of the public at the Silverexpo fair, which, organized by Colpensiones, establishes a space aimed specifically at the older public, where specialized goods and services are offered. Bayport Colombia, a payroll loan company, is going to receive US $ 150 million as a result of a syndicated loan involving a subsidiary of Cerberus Capital Management, JPMorgan Chase Bank and a Canadian institutional investor. This money is intended, among other things, to provide loans to pensioners and employees of the armed forces and the education sector. Figures from the company show that of its 60,000 clients, that is, 55% of the total are pensioners.