Are loans granted to retirees? Conditions and recommendations
At any time in our life we may need extra money to cover unforeseen events or settle debts. And even more when we reach the retirement stage, since the pension can sometimes fall short to cover the needs that arise on a day-to-day basis. A gift for grandchildren or helping children monetarily may be the reasons for needing a loan. Today, at Sergeant Francis Troy, we tell you what are the loans for retirees and what requirements they have to apply for them.
Why ask for a loan for retirees?
Growing up is an inevitable stage of our life, we all grow old and reach a period of our life when we stop working to rest after a life of work. But this does not mean that life stops and with it, the ability to enjoy things: grandchildren, family, friends, or perhaps the opportunity to make the cruise you had always wanted. In short, to be able to dedicate yourself to everything that during your work stage you could not due to work.
That is why today we want to talk about retirement loans. So that the lack of financing or savings does not prevent you from enjoying your time as a retiree.
You never know what may come up, but we want you to be prepared. Whether it’s an emergency or a leisure opportunity that you can’t miss, retiree loans are a viable option to get quick financing and to get what you want on time.
Who are these loans indicated for?
Loans for retirees are indicated for anyone who, after having closed the work stage, needs to obtain financing for any type of project, regardless of the age or purpose of their project.
Why ask for a loan being retired? As we say, any unforeseen may arise, and more taking into account that it is a stage in which benefits are no longer generated nor do regular and sufficient income come in, so you may need quick money to cover your emergency.
But they will always be indicated for those people who can face the payments and the repayment installments of the loan to retirees. At a minimum, you must have a minimum income to be able to take charge.
General conditions of loans to retirees
The general conditions are indicative, since each entity establishes its own conditions, so that from one to another the conditions may vary. These are the most common in retirement loans
retirees or pensioners
Maximum age to request a loan
These types of loans have a greater age range but still establish age limits that are usually set at no more than 88 years at the time of finalizing the loan payment or having more than 75 at the time of requesting it.
The maximum amount to a request
They usually range from any amount up to $ 300,000 and will be determined based on the repayment terms. And never exceeding fees of more than 30% of total monthly income.
The repayment terms can range from 12 months to 60 months, or what is the same 5 years maximum to return it.
Early cancellation is not usually a problem in these types of loans, so you can pay the advance of all remaining terms without obtaining a penalty.
The interest rates that are usually charged are
(annual nominal rate) between 50/60%
(effective monthly rate) between 4-5%
(annual effective rate) from 60 to 80%
Documentation to contribute
ID or updated passport
Bank account where to deposit the amount
General recommendations when applying for loans for retirees
It is important that when requesting a loan you are aware of your payment responsibility. If you are old, entering a risk center, such as the Veraz report, is not positive and involves unnecessary headaches and concerns that we can avoid by planning our payments well and doing an analysis of our financial situation before applying for the loan.
If you need the money but you cannot return it, it is better that you do not request it since the consequence will be to be reported by Veraz.
And if you are already reported in Veraz and need a personal loan, keep in mind that it will be more complicated if you are also retired. In these cases, it is more common to request a guarantee, such as a home, property or other people.
Applying for a loan for retirees is as simple and fast as applying for a student loan or even applying for a mortgage loan. From Sergeant Francis Troy we do all the search, comparison and analysis of which entities offer you the best conditions for the loan you want to apply for. We advise you not to waste a single minute in the process of applying for a loan, even if you are retired.