Seniors are becoming increasingly active. They also increasingly want to make a major purchase. Consider, for example, buying a motorhome or a new car in which getting in and out is easier. But renovating the house so that you don’t have to move is also happening more often. Reasons enough to apply for a loan even at age.
Borrow money as a senior citizen
Borrowing money when you are old is not easy. There is an age limit for taking out a loan. This age limit varies per lender and is between 60 and 74 years old. If you are of age, we recommend that you carefully read the conditions regarding the age limit. For example, you may be expected to pay off the loan in full within five years.
What is a senior citizen loan?
There are lenders today who offer special senior loans. In most cases, this is a personal loan instead of a revolving credit. With a personal loan, before interest is taken out, the interest and duration are fixed. The loan amount is deposited into your account in one go, so that you have direct access to the money. You then pay a fixed amount in installments and interest each month.
For whom is a senior citizen loan suitable?
A senior citizen’s loan is suitable for people who:
- Be between 65 and 74 years old
- Want certainty
- Borrow money for a specific purpose (motorhome, cruise, renovation)
Best senior loan
Fortunately, more banks and lenders are offering loans to seniors. But where and at which party do you now find a good senior citizen loan with good conditions? We have compared various loans for people over 60 in search of the best senior citizen loan. The Personal Sr. was the best in the test. Loan from Credither.
Personal Sr. Loan
Only recently on the market, the Most Personal Sr. Credither loan. Updated in May 2019 and can now be requested for up to 78 years. Nowhere else can we find a loan that is provided to people up to 78 years of age. You apply for this loan between the ages of 60 and 74 and pay off the loan before your 78th birthday.
Main reasons for the application
- Flexibility in monthly payments
The unique thing about this loan is that the collection date is flexible. You can therefore determine yourself on which day of the month the amount is debited from your account. This date can be changed once a year. Do you want to get rid of the loan faster? Then you can choose to have the monthly amount increased for a minimum of 6 months. Or you can repay an extra amount once, free of charge.
- Long term possible
Seniors are often expected to pay off the loan within a short period of time. This limits the bank’s risk of dying within the term of the loan. Fortunately, this loan can be requested with a longer term. A term that matches the loan target. By keeping the duration a little longer, the monthly costs remain lower and are affordable. Perhaps you are not yet retired, but that is the case next year. By keeping the duration a little longer, the monthly costs will remain lower and they can also be paid well next year.
- Transfer existing loans
Are the monthly costs of the existing loans very high because you have to pay off quickly? Then you can choose to take over the loans. Because you are with the Personal Sr. If you can choose a loan for a longer term, you can reduce your monthly payments in a responsible manner.
- Request a ‘payment holiday’
You get the option to request a so-called ‘payment holiday’. This means that your monthly payment will be suspended for 3 months. After those 3 months, the payments continue in the same way as you were used to. So you don’t have to pay extra for those months after that. A good solution for avoiding payment arrears in a period when you are financially short of cash.
Personal Sr. Get a loan
The Most Personal Sr. Loan can be taken out with selected financial advisors. We ourselves are very satisfied with De Nederlandse Kredietmaatschappij, which provides these loans for Credither. We see that they act quickly and accurately. Applications are processed quickly and are often approved relatively.
Why do banks set stricter requirements?
If you are of age and you are applying for a loan, you will see that banks have stricter requirements. They do this because the certainty that the loan will be repaid decreases in percentage terms each year. For example, the income of someone who is about to retire will fall and there will be less financial room for repaying the revolving credit or the personal loan. Statistically, the chance of death increases and with it the chance that the loan is not fully repaid.
What do banks take into account?
- The personal situation
If you are of age and you want to apply for a loan, the personal situation will be carefully considered. It is checked whether you receive a benefit or pension. Whether living together or alone. And whether you have a property for sale or rental. In other words; what are the fixed income and expenses.
- The loan amount
It is calculated whether the maximum loan amount is justified and whether you will be able to repay it in the future. The loan amount differs per bank. For example, as a senior you will only be able to borrow 5,000 euros from one bank, while it is possible to borrow up to 50,000 euros from the other bank.
- The repayment term
Many banks ask their consumers to repay the loan quickly by age. Because you are obliged to opt for a short term, you must be able to repay a substantial monthly amount every month. Fortunately, you will not be asked to do this when you use the Personal Sr. Loan close.
- Conditions regarding death
The conditions for a death also differ per bank. There are lenders who cancel (part of) the loan, but this is often offset by compulsory death insurance.
As a senior, request a quote from various banks. Then compare the points such as the loan amount, the repayment term and conditions regarding death. As you can see, the Personal Sr. scores. Loan from De Nederlandse Kredietmaatschappij very good on the above points. We therefore advise you to include this in the comparison.
Maximum age to borrow money
The question is whether the maximum age to borrow money should not be raised? The main reason for banks not to grant loans to people of age is the fact that they are more likely to die while the loan has not yet been paid off. But life expectancy is rising and on average we are getting older in the Netherlands. A woman is on average 82 years old and a man on average 78 years old. In our opinion, therefore, it is no longer realistic that banks no longer provide loans to someone who is 60 or older. The group of people aged 65 and over is constantly growing. At the moment there are almost 3 million in the Netherlands. The need to take out another loan is increasing among this group. People stay active for longer and want to enjoy the ‘old age’ in the camper, on the cruise ship, or in the adapted home.