Finding lenders that provide loans to pensioners can be tricky. When it's time to retire, lots of people try to possess a considerable amount of savings set aside to see them through their retirement years. Life could be unpredictable sometimes though and it's not uncommon for people looking for lenders that concentrate on providing loans to pensioners when financial emergencies show up.
The unfortunate reality is that it can be difficult to get loan approval discover an active worker of a high level pensioner.
In South Africa, retirement age is usually 65. At this age, many people are excluded from the ability to gain access to loans, largely since they're considered too risky.
What are your options in South Africa?
Absa and Traditional bank do not have a time limit for his or her loan applications. These banks will instead consider the risk profile of the loan applicant.
Capitec Bank, however, has possibilities to individuals who're receiving a monthly pension.
It's important to note however, that banks are not the only banking institutions that grant loans. Affordability is essential.
According to Paul Rosenbrook, director of the South African Association of Retired Persons:
“In reality, few banks will be wanting to give loan to older people. And few pensioners will be able to pay back longer-term loans without difficulty.”
EC Finance offers loans to pensioners by means of finance from R1000 to R120 000.
Documents usually required include:
- Valid South African ID
- Pension Slip
- Copy of your pension cards
- One months' bank statement
It's vital that you consult a financial consultant prior to applying for any loans available to pensioners. You have to be realistic regarding your financial standing and sure that you'll be able to repay the borrowed funds.
