Take out a loan at a later age? That is now a lot faster and easier. There are more and more opportunities for seniors to borrow money. Such as special senior loans. In this blog you can read more about the borrowing options and what you should pay attention to.
Increased maximum age for borrowing money
The maximum age to take out a loan differs per lender. You can take out a senior citizen’s loan from the age of 60 and you can now pay off your loan up to the age of 74. Previously that was until your 68th year. Do you still want to take out a loan at the age of 74? That is possible, but then you often have to pay it off within 5 years. Banks apply stricter conditions because they have less certainty that you can also repay the loan. After all, when you retire, your income will fall and you will be able to repay less.
Senior citizen loan often a personal payday loan
Various banks offer a special senior citizen loan. This is often a personal payday loan. With a personal payday loan you borrow a fixed amount. The term, the interest and the monthly amount are fixed for the entire term of the loan. So you know exactly where you stand.
Senior citizen loan: pay attention to the conditions
The conditions of a personal payday loan vary per lender as well as the interest that you have to pay. As with any loan, it is important to see which bank offers the low-interest loans. In addition, the minimum and maximum loan amount is important. You can borrow 5,000 euros from one lender and 25,000 from another.
Furthermore, it is wise to pay close attention to the repayment term. You have more time with one lender than with another. The earlier the loan is repaid, the higher the monthly costs. Responsible borrowing starts with good and correct information. Therefore, consult a consultant to ensure that you are properly informed about the borrowing options.
Calculate the costs of the personal payday loan
A personal payday loan comes with fixed monthly charges. The question is whether you can continue to pay this when you retire. It is therefore wise to take this into account before you take out a loan. Therefore, first calculate how much you can borrow so that you know which monthly costs are included. This way you will not be faced with financial surprises!