In the last stage of life, after decades of work, you can go well and enjoy life the way you would like it to be for the rest of your life. The question, however, is whether and how to finance this desired form of the evening of life? If one’s own pension and, if necessary, the savings do not suffice, current surveys and statistics also increasingly include the possibility of borrowing. The credit for seniors seems to be developing into a “trend product” due to a steadily rising demand. But why do credit offers for the older generation enjoy such obesity and, most importantly, for which purposes should you find use? Above all, three reasons are mentioned by seniors as a reason for borrowing.
The main reason for a senior loan: age – appropriate house and apartment conversion
One of the most frequently mentioned main reasons when borrowing by seniors is the desire for a senior-friendly conversion of the house or your own home dar. A comprehensible reason, because such a conversion can quickly – depending on the conversion requirements – beat with several thousand euros. But even trivial reasons are mentioned as a reason for borrowing. On the one hand, there is the desire to make another great journey in his life, but on the other, he also wants to financially support his own children. It is interesting, however, that when taking out a loan, it is always emphasized that the loan should be used for free. From this it can be deduced that with a senior’s loan quite a few needs in one should be served.
Demand is rising. 50% more loan requests between 2016 and 2017
And the need for such loans is increasing enormously. For example, a well-known online portal recorded a 50% increase in online credit inquiries from the age of 65 onwards between the years 2016 and 2017 alone. It is interesting that almost every second loan application was approved. What initially seems to contradict consumer appraisers’ criticisms seems to be that loan applications from senior citizens are increasingly being rejected. A criticism that is certainly right in the beginning, but must be considered in its entirety. Because it is true that the age of application is one of the main decision-making criteria of the granting bank. It is an open secret that every year, after retirement, not infrequently, the chance of obtaining a loan drops significantly. With an average life expectancy of Germans of 81 years, the banks finally want to make sure that the borrowed money is also repaid. A procedure that every bank uses in each age group: Assumption of the likelihood of an impending loan default.