A loan for pensioners is often difficult, despite regular income from the pension. Because with increasing age, traditional banks increase the risk that they will no longer get their senior loans repaid. At the same time, the pension in retirement is very low, which makes repayments even more difficult. Best bank offers pensioners an alternative to the bank and also enables loans for seniors with fair interest rates and flexible terms.
Retirement age as a risk factor for banks
Pensioners and senior citizens face two problems when it comes to the chance of a positive loan decision from the bank. On the one hand, the risk of death increases for people of advanced age every year, so that banking institutions expect rising default rates and are reluctant to give pensioner loans. On the other hand, retired people usually have only a small pension and possibly a low income. But why is a loan a problem for retirees with low income and a small pension for banks?
The fact that the monthly pension payments are very low for a large number of pensioners and that they have little or no income has a negative impact on the creditworthiness assessment. Accordingly, the creditworthiness is usually not sufficient to obtain a loan for pensioners from banks or other credit institutions.
Fair credit opportunities for retirees at Best bank
Best bank, on the other hand, offers pensioners a fair and real credit opportunity even with a low pension or low income. The pensioners owe this chance of a loan to pensioners with a low pension or low income thanks to the innovative valuation procedure at Best bank, in which up to 300 creditworthiness criteria are checked in advance in order to enable the most holistic valuation possible.
In contrast to conventional banks, we take into account not only the monthly pension for loan brokerage, but also other income, such as transfers from family members or friends and acquaintances. A request for a loan for pensioners is therefore evaluated objectively, just like any other loan request. The loan application is categorized and assigned an individual Best bank score, from which the interest rate for the installment loan is derived. The pensioner loan is also provided with the desired term and the monthly installments for repayment.
As a pensioner, you will then receive your loan, the amount of which you can freely dispose of. The entire process, from the application to the payment of the senior loan, takes place online. You don’t even have to leave home to get an Best bank pensioner loan. Online loan brokerage therefore benefits pensioners who are no longer so mobile.
These pensioner credit requirements must be met
To get a loan from Best bank, pensioners must have the following requirements:
- Resident in Germany
- Bank account in Germany
- Age limit of 69 years
- Basic credit rating
In addition to a residence and bank account in Germany, you must have a basic credit rating in order to get a loan for pensioners. At Best bank, just like other banks, a minimum age of 18 is required for borrowers to take out a loan. The age limit for brokering a loan is 69 years. Accordingly, the requirements for a loan for pensioners at Best bank do not differ from the basic credit requirements for installment loans.
How to get a loan for retirees online
Loan processing at Best bank is designed in such a way that you don’t even have to leave the house to get a loan as a pensioner. First, register online as a borrower with Best bank within a few minutes. For this we need some personal information, such as your address, your contact details and your age.
You can then choose the desired loan amount and the term of your pension loan. Best bank provides loans in the amount of 1,000 to 50,000 USD and offers loan terms between 12 and 84 months. If you have requested the loan of your choice, we will send you preliminary loan offers. You can then decide which installment loan appeals to you most in terms of term and loan interest.
In the next step, Best bank carries out a preliminary check of your creditworthiness. If this is sufficient for a pensioner loan, the steps of identification and contract signing follow, both of which can be carried out conveniently online. If you have help with identification via VideoIdent or signing the loan agreement via eSign, your children or grandchildren will be happy to help you. Alternatively, you can of course also choose the postal route and sign the contract offline in the classic way.
If all steps have been carried out successfully, your senior loan can be ready for payment within 24 hours, so that the money is in your account within a few days.
Apply for a loan for retirees with immediate approval
If you are applying for a loan for pensioners from Best bank, we recommend that you provide the most precise information possible at the beginning of the application process. If you provide the requested loan amount and term from the beginning of the loan request, and if you are as precise as possible in the details of your personal and financial situation, Best bank can provide you with very precise preliminary offers. This gives you the chance to make an immediate decision about your loan application and can ultimately get your pensioner loan faster.
When it comes to checking your creditworthiness in advance, you can also speed up the loan application by sending us any documents that may be required as PDF files. Finally, Best bank offers a VideoIdent procedure for identification, which saves you having to go to the post office. If you follow these points, you can get an immediate approval and the pension loan can be ready for payment within 24 hours. This makes it a real instant loan.
Enjoy well-earned retirement with a senior credit
The last few years before you retired, you worked towards your new free time, but now your pension is not enough to spend your retirement the way you imagined it? Loans for Best bank retirees are real dream loans. Financing starts with small wishes, which are usually covered with a mini loan or small loan for pensioners. Sometimes, however, there is a greater financial outlay behind the financing project.
For example, car loans for retirees are also possible. Often, retirees also have existing loans that they want to redeem through debt restructuring. It is not uncommon for renovation work to be neglected in your own four walls if you are in the middle of your professional life. In order to spend the last few years in your own home in a beautiful environment, you need a modernization loan. Or maybe you have an apartment that you rent out? A renovation can increase rental income, which means an additional financial injection for the pension. Whatever purpose you choose for your pension loan, design your retirement the way you deserve it.
Benefit from pensioner loans at fair fees
Whether you apply for a loan for pensioners or a loan for another group of people with Best bank, there is no cost for you as a borrower before the loan is realized. The registration, creation and publication of a loan project are free of charge, as is the preliminary check of your credit rating. Only when the credit contract is concluded and the money is in your account, Best bank charges a small one-time agency fee of an average of 3.5% of the net loan amount (depending on the term and credit rating). This fee is spread over the entire term of the installment loan for pensioners and is part of the APR, so this is not a special payment.
Why residual debt insurance on a loan makes sense for retirees
When a loan is concluded, Best bank offers borrowers the option of booking the Best bank carefree package. This is a residual debt insurance that protects the loan against temporary payment defaults on the installment. Credit insurance applies to inability to work, unemployment, serious illness and death. For borrowers who have reached a certain age, taking out residual debt insurance makes sense.
Here you should plan rationally to protect your own family or surviving dependents. This security ensures that the residual debt insurance comes into effect should one of the above cases occur.
Would you like to take out a loan as a pensioner and have open questions?
Why are there hardly any loans for pensioners over 70?
Most banks refuse a loan for pensioners over the age of 70. One of the main reasons for this age restriction is the increased risk of death for people over 70 years of age. Banks fear that pensioners’ loans will no longer be repaid on time. For this reason, numerous banks generally refrain from lending or brokering loans to seniors, even if they are still a long way from their 70th birthday.
Best bank is significantly more flexible in arranging loans to pensioners. Since the pension provides a regular income and in some cases other sources of income predominate, Best bank in many cases enables pensioner loans on fair terms, provided the age limit of 69 years is not exceeded.
Are loans for pensioners without credit bureau possible?
Loans without credit bureau are generally not possible with Best bank, which is why we do not offer loans for pensioners without credit bureau. However, we arrange loans despite credit bureau, because at Best bank, the focus is on the customer. In order to be able to take a holistic view of the creditworthiness of potential borrowers, in addition to the credit bureau score, up to 300 other factors are used to assess the creditworthiness. We know how quickly an entry at credit bureau can happen, so this should not be an exclusion criterion for pensioner loans either. If the solvency is ensured by other factors, a loan for pensioners is possible despite a negative credit bureau.
Do I have to provide collateral for a pensioner loan?
On the contrary, banks generally have strict requirements for lending, which are not relaxed when the loan is requested as a pensioner. Since retirement age is fundamentally a risk factor for banks, collateral is often required, especially if only a low pension is drawn. With Best bank, on the other hand, you do not have to provide collateral for an online pension loan.
Can I specify a co-applicant for a senior loan?
Some banks offer the option of taking out senior loans with a second person, either as a co-applicant or in the form of a guarantee. This can, for example, compensate for the lack of security or other risks that seniors bring with them. With Best bank it is not possible to take out a loan with a guarantor. We also trust pensioners to take sole responsibility for a loan. In addition, if you take out a loan alone as a pensioner, you do not have to impose a financial burden on any other person.
Why you should get a loan from Best bank as a pensioner
In a direct comparison, pensioners and seniors have a much higher chance of getting a loan from Best bank than from their house bank. Because banks do not decide whether a loan for senior citizens is financed. On the online loan platform, private individuals act as lenders and thus have a significant influence on the loan decision for the pension loan. As a pensioner, you have a fair chance of getting a loan because you don’t bounce off the strict requirements of the credit institutions from the start, but instead you get a holistic preliminary check of your credit rating.
In addition, conditions such as interest and special repayments on loans for pensioners are always fair. So make your loan request online today and you will receive an answer within a very short time as to whether a pensioner loan is possible in your case.
Can all pensioners get a loan from Best bank?
Yes, in principle Best bank gives all senior citizens, whether pensioners or retirees, up to an age limit of 69 years a fair credit opportunity. So take advantage of this opportunity today and submit your personal loan request online. Within a few minutes you will find out quickly and easily whether you will receive a loan through Best bank despite your pension.