As is well known, retirees, like the self-employed, find it particularly difficult to get a loan – this is simply because banks take into account all the risks that exist in their considerations of the likelihood that they will not get the borrowed money back must – and of course this includes the death of the borrower, which unfortunately is more likely to be possible for senior citizens than for younger borrowers.
Abroad sees it no differently
Loans without Schufa, which are offered through German credit intermediaries in Germany, are not intended for people over 55 or 57 years. Of course, the age is checked exactly when issuing a loan, whether in Germany or abroad, using the ID card.
Obtaining a loan is difficult for retirees – but not impossible. This also applies to finance from car dealers or electrical retailers. The basic conditions and the chosen terms of a loan are always important: it is basically impossible for a pensioner to receive real estate financing with a 20-year term, but short-term financing with a few months is conceivable.
In most cases, however, interest rates will also be increased, due to the risk of default. It is, of course, fundamentally important that the pensioner’s income is sufficient to obtain a loan – the creditworthiness is checked more closely. How much is the pension? How much are any additional income? What financial obligations does the pensioner have?
The solution may also lie with a private guarantor
who takes the risk of the default of the first borrower almost on their own shoulders – this would then be a joint and several guarantees. The bank also has the right to access this guarantor without having to take legal action against the borrower, which in turn provides the bank with security.
However, it is also conceivable, for example, that the borrower has collateral customary in the bank – life insurance would be useful, for example, which is paid to the surviving dependents in the event of death and could also be used to service the loan.
Finally, there remains the question of why the loan is needed for pensioners and whether it might be better to do without the loan? If there is a financial emergency that needs to be bridged, it is often a good idea to contact friends, family members or friends and ask them for support rather than taking out a loan directly from the bank.