If you are pensioner looking for loan you shouldn’t miss this post.
Being as a pensioner, obtaining the loan and any other kind of finances may seem as a problematic one. You can’t appear for some of the best loan deals which are available in the market today just because you can’t generate any more income. But still to deal with the situation just ensure you are fulfilling all other aspects of getting loan are met before approaching any lender. If you do this you lender will not have any reason to reject you for the loan.
Continue to read the below 5 points to make up your situation and obtain a loan from any lender.
Your age may make you a credit risk
Generally some of the important factors when reviewing the loan application are credit history, age and income. You may have a good credit history but since your income and age will not satisfy your lender they will consider lending you as a risky one. Because of this reason most of the lender used to reject the credit application. Have you experienced this? If so you are not the only one. Merely all senior citizens undergo the same sort of situation. In this case what you can do from your side is “you can make your lender prove that you can able to pay off your credit for the entire loan term and even if you can better to pay off the interest rates in the beginning itself. So that your lender may consider the potential to pay off the loan and consequently chances are there for you to get succeeded with your loan application.
Demonstrate your loan serviceability through credit application
Irrespective of your income flow and age as a pensioner you should demonstrate the ability that you can actually pay back the entire loan amount you are requiring now. If your statement satisfies your lender and he thinks like you can pay back the borrowed money in the loan term and you can stick with your repayment schedule then your chances of getting the loan will be improved greatly. Here mentioning the asset you own and any other possible income sources you have like rent it will make sense.
Being as a homeowner can help improve your situation
Although you have a very strong income as a pensioner some other factors like sickness and hospitalization have the potential to affect your pension income. In this case if you own a home as a home owner you can able access your funds as home equity. It can actually convince your lender that you can able to meet all the required repayments throughout the pension loans tenure.
Unavailability of Non-standard mortgage loans
Some kind of long term fixed rate mortgages, line of credit are all some of the innovations which have appeared in market in the recent years. But the sad truth is these options are not made available for the senior citizens. Usually when you appear for the line of credit as a home owner you are allowed to take out the equity through the home they own. You can also extend the tenure of the loan if you wish. Because of these reasons mortgage lenders hesitate to offer these loans for pensioners. From their view extendibility of the loan may increase the risk of default the loan.
Based on your present situation you may or may not obtain loan insurance. Premium amount may be quite high when you see from the state of pensioner. But to offer loans for pensioners mostly all lenders require applying for loan insurance before considering your pension loans. This actually reduces the risk to the lender.