After age 60, you can still borrow money or take out an existing loan.
Here is some information to let you know more about the possibilities and points to consider if you want to take out a loan at an older age.
What type of loans can you apply for?
As a person aged 60 and over, you have the choice between two types of loans, a personal loan and a revolving loan. Several banks offer special loans for the elderly. It is often a personal loan.
With a personal loan, you borrow a fixed amount. The duration, the interest and the monthly amount are fixed for the entire duration of the loan. A personal loan is ideal, for example in the event of a renovation.
Interest for the purchase, improvement or renovation of the house is also tax deductible. You can take out a personal loan up to the age of 75. The loan amount must then be repaid within 5 years.
With revolving credit, you can withdraw money at any time and in a flexible manner. However, due to the retirement age, the loan must be repaid on time. Do you already have revolving credit? If so, it would be wise to transfer your revolving credit to a senior loan. It is often a personal loan.
In addition, in the case of a revolving loan, banks often increase the repayment to 2% when you are 60 years old and often at a high variable interest rate. It is therefore more difficult for you to repay quickly because of the monthly payments. With a senior loan or personal loan, you pay a fixed amount per month at a low monthly rate and with a fixed term. That way you know where you are.
What will happen to your loan when you retire or die?
You prefer not to think about it, but it’s still wise: what will happen to your debt if you die? If you take out a personal loan, it is also wise to take out insurance with a credit insurer in the event of death. With this insurance, the payment obligation expires in the event of death. The insured amount will be released in the event of death so that you do not leave your loved ones with your loan.
Also find out how to borrow money without the intervention of the bank.