Many retirees find it very difficult to find a suitable loan. This is especially true for people who have already completed the 80th year of life. For most banks, the risk of lending 80 years is way too big.
There is always a risk that the borrower will die before the end of the term and the bank could not get back the money completely. Therefore, there will only be a loan for 80 year olds if additional collateral is available or if the borrower is prepared to take out suitable residual debt insurance.
Many banks exclude all persons over the age of 65 from lending. It also makes little sense if they own a larger fortune or a debt-free property. However, no retiree who absolutely needs a loan should give up prematurely. If he gives himself enough time, does a credit comparison on the internet and deliberately looks for a loan for 80 years, he will certainly find it.
Like all other people, pensioners over the age of 80 must have a good credit rating and a steady income. The latter will be given by the monthly pension payment. In addition, it would be urgently necessary that the Private credit is positive or at least neutral.
If these conditions are not met, the bank can request a solvent guarantor, who should ideally come from the retiree’s immediate family. However, this task could only be undertaken by one person who has a positive Private credit information and a regular income. The term will be very short for a loan for 80 year olds. Many banks have set a limit of 24 or 36 months here.
Payment protection insurance
Insofar as the bank agrees, a loan for pensioners in advanced age can be covered by a residual debt insurance. Many banks even insist that the retiree take out this insurance. Otherwise, his loan application would have to be rejected.
The residual debt insurance, which is also called residual credit insurance, can always step in for the payment of monthly loan installments, if the borrower is no longer able to do so himself. If he dies before the end of the term, the remaining credit insurance compensates for the remaining amount remaining at the time of death.