Credit for pensioners
Most retirees regularly experience a shortage of money. The pensions that the government gives them are miserable. They are not enough even for basic necessities. You need to buy regular groceries, pay utility bills. They also need medications, and because of their age, they have to spend a lot of money on treatment. If pensioners can somehow cope with current expenses, then emergencies can completely throw them off balance. If there are children and grandchildren, they help in a difficult moment. But what about those who are alone? That’s why the service of taking out a loan on a pension certificate is becoming more and more popular. In most cases, these are loans that are needed for medical treatment (surgery, purchase of expensive medications) or urgent home or apartment repairs. Also, borrowed sums can go towards housing and utilities payments, especially if large debts have already accumulated.
What credits are given to pensioners?
Pensioners under 75 years old can expect to get a loan in Ukraine. But banks rarely set such wide age limits, so it’s better to apply to microfinance companies. These are organizations, which provide small loans.
If the borrower is under age 60, then in general he can easily get a loan and not be afraid that he will be denied financial assistance because of his advanced age.
If the borrower meets all the requirements, then he can count on any loan, that is, you can choose what is more suitable under the conditions: a quick loan from an MFI or a consumer loan from a bank. The choice depends on what goals the borrower pursues, that is, what he needs the amount, as well as on the credit terms prescribed in the contract. But it is necessary to take into account that some organizations observe the rule: the amount of the issued credit should not be more than 5 minimum rates of pension.
As a rule, loans for people of retirement age are granted for a period not exceeding 1 year. According to the terms, payments are supposed to be made once a month, and the total amount is divided into equal shares. It is allowed to close the credit line before the deadline. Then, the accrued interest will be recalculated in favor of the client.
Although there are many offers on the financial market, it is necessary to be careful in choosing a lending organization. Conclude a contract only with a proven company. It is recommended to read the reviews about it from other clients in advance. It is also necessary to carefully check all the terms of the loan, especially this applies to the terms of the loan, the interest rate, as well as the reasons for penalties.
Can I get a bank loan only with my pension certificate?
Banking organizations always have very high requirements for potential clients, especially when it comes to providing any guarantees from them. It is not possible to get a loan solely with a pension certificate. This is due to the fact that other documents are also required from the borrower, which confirm their identity, viz:
- It must necessarily contain information about the place of residence. If you don’t provide a passport you won’t be able to check your credit history – this is one of the main factors for the bank when it considers the application, submitted by a pensioner;
- Taxpayer identification code (this is a standard TIN for individuals);
- Also, the banking organization can go to additional measures in order to obtain guarantees. For example, the option of granting a loan is considered when the ownership of immovable property (this applies to collateral lending). Also, another option is a contract of surety from a legally capable relative who has an official job.
These requirements for obtaining a loan are basic. During the processing of documents, you may need statements and certificates of income. Some banks ask to show a completed life insurance policy.
Not so long ago it was not at all possible to get a credit for pensioners. But now the Ukrainian banking market is gradually fixing this problem. There are organizations that give loans for people of different age groups. This competition has led to a positive trend among banks to lend to older people who have already retired. In many ways, it has also influenced the fact that retirees have turned out to be the most careful, responsible and compulsory payers, so the risk of bank assets is reduced.
As a rule, half of the borrowers are denied credit. Different factors, including age, are especially taken into account. But there are several ways to reduce the likelihood that a loan application will be denied. First, it’s best to apply for a loan at the exact bank where the card to which your pension comes is issued. Secondly, it is best to bring a guarantor. Third, you should consider getting life and health insurance. This is especially important if you are planning to take out a long-term loan. Such preliminary measures will help to increase your chances of success in obtaining a loan.
Getting a Loan with a Retirement ID from an MFI
The chances of getting a loan from microfinance organizations are much higher for people who are already retired. Although they offer smaller amounts, but these services are more loyal to the applicant. They prefer to be guided by an individual approach. In order to apply for the credit a pensioner can provide only several documents, i.e. the corresponding ID card and the internal passport of a citizen of Ukraine together with the ID code.
The main advantages of obtaining a consumer loan from an MFI:
- The age limit for applicants can be up to 70-75 years old;
- Provision of minimum of documents;
- Possibility to apply at any time of the day. It can even be a weekend or a holiday. Managers in the MFI always stay in touch, so you can contact them by calling the hotline or through the form on the website;
- The most favorable conditions. For example, the first loan may be interest-free, and large discounts are given on subsequent loans. Also, the allowable amount for a loan will gradually increase. If any financial difficulties arise, MFIs are well aware of their clients and try to increase repayment terms as necessary.
Thus, MFIs are new generation lending companies. Their work is transparent and honest. There are no hidden fees and all cooperation terms are as loyal as possible. The main purpose of such organizations is to provide credit for the benefit of the user.
The whole procedure for obtaining a loan is as simple as possible. You need to go to the site of the selected microfinance organization. Here, on a convenient calculator you can determine the desired amount and the interest payments for each month. If you have questions, you can send them in the form on the site or call. Then all that remains is to fill out the application in as much detail as possible and answer all the questions honestly. After sending the application, the answer usually comes pretty quickly. If the answer is positive, all that remains is to receive the funds in the method of your choice. For example, they can be immediately transferred to a bank card.