Personal loans for senior citizens
Collaborative Post
Financial emergencies can come unexpectedly. No matter who you are or how old you are money issues could arise from an unplanned expense or a sudden emergency. If you’re in a short-term financial bind, a senior citizen personal loan may assist you in getting out of it.
Although many people find a personal loan a convenient source of finance to handle unforeseen financial situations, this may not be the case for a considerable number of senior citizens.
This is because most lenders who offer personal loans cater mostly for borrowers below the age of 60. Fortunately there are a few lenders in the UK who offer these loans to senior citizens, subject to certain conditions.
What is a Senior Citizen Personal Loan?
Just as the name implies, a senior citizen personal loan is a loan granted to senior citizens above 60. Personal loans for senior citizens and loans for younger borrowers don’t differ all that much.
Lenders will need to know that you have a reliable source of income through employment, pension or investment, or an asset, such as a house or a life insurance policy, that can be lodged as collateral to cover the loan.
The value of your collateral determines the maximum amount you can borrow. The lender will use the collateral you present to secure repayment of the loan if you die. If a person passes away before clearing their debts, it is possible that the lender will consider the debts forgiven at death, but that will depend on their lender and circumstances.
Eligibility for a personal loan for senior citizens
Lenders will have requirements for borrowers that may include:
- being a citizen or a permanent resident of the UK
- having s a good credit score
- not having been declared bankrupt
Editor’s note
This article is for information only, as When They Get Older is not a financial adviser. Lenders of senior citizens loans will have their own terms and conditions, and potential borrowers are strongly advised to research the options available, and talk to the lenders as well as consult an expert for independent financial advice before agreeing to a loan.
Photo by Jonathan Cooper on Unsplash
