Small loan for pensioners – which banks grant it?
Financing may also arise in old age. You zap through the television program, for example, and suddenly the picture goes black. A new device is needed. It is similarly problematic if the washing machine suddenly breaks. In order not to be left without help at such times, pensioners often ask a bank for a loan, but many financial institutions are critical of a small loan for pensioners.
The stomach grumble of many banks
Actually, pensioners should belong to the group of people who should have no problem getting a loan at all. They earn well from their pension and this is also secured. The state is responsible for this. Most retirees also have no debts, but have saved some funds in the course of their lives (mostly as material assets: say house, property, etc.). The problem is their biological clock. If the pensioner is nearing his life expectancy or is even older, many banks fear that he will die before the loan is finally repaid. Since his legacy cannot be forced to accept the debt, the loan would then burst. For these reasons, many financial institutions prefer not to grant the loan at all.
The special loan variant
However, this fact has led to some displeasure and some banks have broken with the practice, if only because the pensioners have deposited not inconsiderable investments with them and openly threatened to withdraw them, should the bank continue to categorically refuse to give a small loan to pensioners , For this reason, the financial institutions in question are now offering corresponding loans, but they are subject to tight conditions. The older and poorer you are, the less chance you will get of this loan.
The other options
But even if you don’t get such a special small loan for retirees, there are other ways you can get a loan. The easiest way to do this is to ask a relative to submit the loan application together with them. It is important to make sure that the real two people make the loan application together, because a normal guarantee will probably not be enough for the bank, since the guarantor does not have to pay if the liability event arises because the pensioner dies.
It is different if both people jointly make the loan: In this case, it is legally as if everyone had applied for the whole loan on their own. If the pensioner dies, this means in plain text that the co-applicant must pay the loan entirely on his own. Banks are in favor of this option because that is how they get their money.