Just as our last article was dedicated to talk about the different fast loans existing in the market that the unemployed of our country could apply for despite not having a job (with payroll, registered in the social security), today, we are going to talk about another of the credits that customers usually demand continuously that is none other than loans for pensioners.
Spain being a country with the highest levels of pensioners in Europe, it is not surprising that financial institutions in our country have to have financing products specifically for this sector of the population. Not only that, the banks in general are interested in marketing this type of money quickly because the solvency levels of pensioners are quite high.
Why are banks so interested in offering loans for pensioners?
They are interested because, as we have already said, these clients offer very little risk to the bank. This is so because when the pensioner has a future income in the form of a pension the financial will always be able to seize part of the pension to recover his money. Unlike when a person has a job, in the case of the pensioner this is not affected by salary decreases, employment regulation files, dismissals… which will keep his solvency level intact.
It is also true that by law the financial can not seize up to a certain level of income with what is evident that pensioners who at least do not reach that level will have much harder to access funding.
There is also another factor to take into account that is the Consolidated Debt of the person in the risk analysis. There are clients who think that by having a good income, either by pension or payroll, they will have a guaranteed loan and nothing is further from reality. In the first place the income is taken into account and the older the better, but, the feasibility analysis is made taking into account the relationship between income and debt.
That is, if for example Andrés earns € 2000 but at the same time has loans whose fees reach € 1000 is consuming much of its debt capacity so part of its creditworthiness is not as good as he believes.
Another thing would be if Andrés earned € 2000 / month and also had no signed loan, then his ability to borrow would be intact and therefore it would be much more feasible for the quick money company to grant him the financing.
What kind of loans are there for pensioners?
The first thing to do is differentiate the loans in whether they are bank loans or privately financed loans.
1) Within the private financing we have seen how increasingly these companies offer financial products exclusively for these clients. In us for example there is a loan that takes “Last Retirement” which basically allows the pensioner to obtain money with the guarantee of his property while not having to pay any monthly fee in the form of a loan…
This type of financing is what the client wants in spite of having a property free of charges that closes the bank doors by age (unfortunately as is usual) can access financing without any problem.
Within these loans of private financing we have commented this loan because it is a fact specifically for the pensioner, however you have to know that in addition to this products there are many others that can also adapt well to what the client needs.
2) Life annuity loans. One of these days we will talk in depth about the characteristics of this loan. This credit is also made for pensioners although they really have a different use than usual.
In this financial product the company offers a monthly amount (added to an initial) to the pensioner until he dies, in exchange, the property will become the property of the company once this happens.
This type of financing is useful but only for certain people.
Let’s give an example:
Julia is 65 years old, has no children and has a low pension. It has a property free of charge but on the one hand can not get financing by age and second perhaps it would be foolhardy to borrow in guarantee of the property if it later turns out that the fee can not pay it.
The annuity in this case would be perfect for the client because in that way she manages to increase her income month by month with the amount that the company pays her, she saves herself having to pay the “loan” fee and finally she can continue living in the property until he dies.
In short, this person is giving utility to your property increased their standard of living (monthly income) and without having to get rid of the property.
3) Bank or private personal loans: Here it does not matter because the customer prefers to go there are both private and banking companies that sell these personal loans as a pension guarantee. It is true that the costs are higher than those of a mortgage but on the other hand the client does not have the need to endorse what in case of not having a real estate guarantee it is a perfect loan for that person.
Here it is very important to avoid the problem if there is one. If you have a level of indebtedness it is better than before to try a reunification of loans because it is the product that you need much more than a personal loan.
4) Pre-granted loans: If you are a banking client (you have your income domiciled there…) it is very possible that if you are a pensioner you will be offered a pre-agreed loan at some time. The pre-conceived loans with as their own name indicates a type of financing that the bank approves you before you even make the request. Basically what the bank tells you is that you have an approved loan so if you need money you can use it immediately.
These would be the loans that from advance recommend to deal with any pensioner who needs funding without forgetting other loans such as micro loans which in a very high percentage if you are pensioner approved. What’s more, if you need an urgent loan above the rest of the loans, we would recommend you the online microcredit loan because of the speed of the processing, because in one hour you can take the money into account.
What we would avoid would be the credit cards since being a pensioner there is no need to resort to this financing formula. Hopefully you have served the article.