The consumption of older people is increasing more and more. Nevertheless, the path of optimal financing of the wishes can be rocky. The high risk of this age group makes borrowing difficult.
As the saying goes, life begins at the age of 60 … current studies prove that the fitness of many people into old age also increases the consumerism of this target group.
Whether a long-awaited trip around the world, a new car or the modern kitchen equipment – it is also necessary to finance the new desire for life.
If the pension and personal savings are not enough to meet these needs, a loan must be taken. However, this can be quite difficult for older people.
If you want to take a loan in old age, you often face the problem of finding a suitable lender. For many banks, the risk of mortality default by applicants prior to expiration is simply too great to provide favorable funding.
However, the situation for the elderly is gradually changing for the better. Due to increasing life expectancy, the relevance of the target group 60+ for lenders is also increasing.
Higher interest rates for seniors
Nonetheless, seniors, compared to younger borrowers, are often offered only loans on unfavorable terms and short terms.
Due to the risk classification, older people must therefore expect significantly higher interest rates.
Collateral for better credit conditions
In order to reduce the risk of a loan default on the part of the borrower, it is advisable to provide collateral for senior citizens.
One possibility here may be the term insurance of the loan seeker. In the event of death, the disbursed sum insured can then pay off the remaining debt – so the banks do not sit on the remaining costs.
Another option to secure the financing are real estate or the surety of the children for the loan taken by their parents. For outstanding debts they must then stand, provided the inheritance is started.
Comparison of credit providers
In any case, it is worthwhile to compare offers from different banks, as they handle lending to seniors differently.
The credit broker smava.de offers a simple and fast way to find the best deal from different providers.
For seniors, an alternative to bank credit can also be private lending on the smava platform, where loans are transferred from private individuals to private individuals regardless of age.