Banks usually hesitate to give loans to a retired man. But if applied for loan with a little understanding and preparation, success can also be achieved.
Home loan is not easily available after retirement. Banks also generally hesitate to give loans to a retired man. However, if applied for a loan with a little understanding and preparation, success can also be achieved. Senior citizens have to fulfill certain more conditions to get a home loan. Today, we are telling you some important tips that will help you in getting a home loan.
Eligibility
Before applying for a home loan, senior citizens should take eligibility check based on their age, income and other aspects. Keep in mind that eligibility varies from bank to bank. Experts believe that the applicant should be a pensioner in whose case there is a requirement of stable pension income during the term of the loan. The age of the applicant should not be more than 70 years from the date of application. The loan repayment should be completed before the applicant attains the age of 75 years. Think of it as such that an applicant who gets a pension of 70 years can get a home loan of only 5 years.
Post-
retirement, a good option is to add a co-applicant while applying for home lane after retirement. By doing this, the risk of the lending institution is reduced. Co-applicant should be made for a person who has a permanent income and a good credit score. After retirement, when applying for a home loan, you get a loan but its amount is less. The loan amount only increases when a co-applicant with good income does not join together. Adding a co-applicant greatly increases the chances of getting a loan. It can be found at reasonable rates for a long period.
Take a
minimum loan: Keep a low loan-to-value (LTV) ratio for a home loan and keep your contribution high to buy a home. This increases the buyer’s contribution to the property and decreases the EMI. The risk of the bank is reduced as the buyer’s contribution is high. At the same time, low EMI increases loan affordability. Both these things increase the eligibility of the buyer’s loan.
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The secured loan will help you
the loan taken on the guarantee of an asset is called a secured loan. The risk of banks is less in case of secured loans. The rules for secured loans are slightly softer than for unsecured loans. Loans can be taken on assets such as property, gold, shares, mutual funds or PPF etc.
Credit score A
good credit score is also important for those who have retired. Most banks and financial institutions consider scores of 750 and above as good.
Approach Government Bank If your income is your pension after retirement, then apply for a loan in a government bank. Government banks give pensioner loans, for which it can be easy to meet the eligibility scale. In these, the interest rates are slightly lower than personal loans.
