Borrowing at the age of 60 is basically possible, especially as in Germany and other EU countries licensed financial institutions would violate the prohibition of age discrimination in the case of a general exclusion of senior citizens as credit customers.
By way of derogation from this provision, some non-EU-linked Swiss credit institutions may lend their loans without private credit only up to a maximum age of 55 or 58 years. These age limits apply absolutely only to directly applied loan applications and not to the appointment of credit intermediaries.
Borrowing by 60-year-olds at banks
Many older citizens are not familiar with the Internet, so a loan for 60-year-old applicants is received more often than through a branch bank. The fidelity of senior citizens to their house bank also contributes to this. Applying for a loan through the principal bank makes sense for low-income applicants, as bank employees take into account the good experience from their previous business relationship in their lending decisions.
If seniors earn an average or even good income, for cost reasons, an online bank offers itself as a contract partner for the credit for 60-year-old claimants. Thanks to the cost-effective distribution channel via the Internet, interest rates for direct banks are almost always cheaper than for branch banks. In terms of maturity, it is ideal if the loan for 60-year-olds will be repaid when the pension begins, so that repayment terms of five to seven years are ideal.
For severely disabled borrowers aged 60 or over, the recommendable term is reduced to three to five years, as they may retire earlier without any deductions. If the loan taken out at the age of 60 can not be redeemed before the beginning of the pension, both the financial institutions and the borrower make sure that the household income of pensioners decreases.
60-year-old borrowing through private lenders
As an alternative to the bank loan, there is a loan for 60-year-old borrowers through a platform for arranging private loans. The prerequisite for the use of the corresponding offers is, of course, that the elderly citizens seeking a loan use the Internet. The corresponding platforms bring together loan seekers with private lenders, where for legal reasons a licensed full bank formally carries out the settlement.
When deciding on the granting of credit, the portrayal of the personal life situation and the purpose of the loan application submitted are the main contributing factors on the respective platforms. The anonymity of the 60-year-old borrower is maintained by not transmitting the mutual contact details and settling all payments through the platform’s accounts. Depending on the amount of the desired sum, the loan requested by the platform for 60-year-old members will be co-signed by one or more private lenders.