Loan rules and limits for retirees up to 90 years of age
I start immediately by telling you that getting a personal loan in old age – over 80 – is possible but not a foregone conclusion. In fact, the factors that determine the eligibility to receive loans for retirees up to 90 years of age are different and at the same time linked together.
Consequently to what has just been said, the first indications that I come to give you are the fundamentals so that you can continue reading afterwards knowing that you can probably have the right characteristics to ask for and obtain a repayable loan within a maximum of 90 years of age.
Otherwise, if you do not have the characteristics that I will tell you shortly, you can try other ways to obtain small loans, one of these could be for example the loan with a pledge, but for the moment focus on the possibilities offered by the assignment of the fifth of the pension.
To start, I will tell you immediately which pensions are excluded and / or not cumulative : pensions and social allowances, civil disability, allowances for assistance to incapacitated pensioners, income support contributions, family allowances, retirement benefits, pensions with joint ownership for the share part not pertaining to the party requesting the assignment.
Once you have clarified which pensions are excluded, it’s time to check your income and determine if there are the conditions to continue the reasoning. Here we go!
Feasibility: minimum non-transferable income. To make a realistic hypothesis on the eligibility to apply for a loan to pensioners up to 90 years of age, you must first keep in mind the following figure: the minimum pension set for 2017 and probably also for 2018 is $ 501.89 per 13 months, this figure is important as it is not possible to affect this income, it is in fact the so-called minimum survival threshold.
In essence: those with a pension of this type cannot apply for loans with the transfer of one fifth of the pension regardless of whether or not it ends within 90 years. Continue reading only if you have a pension higher than this amount, otherwise you would waste time.
Calculation with amortization within 90 years
In addition to the two data mentioned in the previous paragraph (survival income and conclusion of the loan repayment within 90 years of age), it is now time to focus on calculating the assignment of the fifth (useful to understand the possible amount of the monthly installment) and the age.
We continue the reasoning following a feasibility logic, let’s say that every consideration we make on a net pension of 1,000 USD per month for 13 months, that is, an annual income of 13,000 USD net, if you take more better, if you take less calculation it does not change, you just have to remember that you cannot, net of the payment of the loan installment, go below the minimum threshold of 501.89 USD and that the total amount of the transferable amount is at most one fifth of the net pension.
Now I will give you a practical example of calculation for a loan for pensioners up to 90 years : age of the applicant 80 years, net pension 1.000 USD for n. 13 monthly payments, with a 10-year or 120-month repayment plan duration.
The fifth transferable is calculated in this way : 1,000 net USD per month x 13 monthly payments = 13,000 USD per year, these 13,000 USD are divided by 12 months thus obtaining the real monthly income which in this case is $ 1,083.33, now to obtain the fifth of this figure you have to make 1083.33: 5 = 216.66 here is your fifth transferable, the monthly installment that you can support according to the parameters set for this type of loan. Multiplying 216.66 USD x 120 months here is that you have the maximum financeable amount which is equivalent to 25.999 USD.
Attention, the 25,999 USD is the amount that can be financed but you will not receive that amount as from there you must deduct the interest and various costs to be paid to the bank or financial institution that grants the loan.
The second example I want to give you is the most extreme one, that is, the one where the calculation is made starting from a pensioner who is 88 years of age and therefore falls within the minimum schedule of the amortization plan, i.e. 24 months. So, always assuming that the net pension is 1,000 USD per month, the calculation will be as follows:
- 1000 x 13 = 13,000 (annual net income)
- 13,000: 12 = 1083.33 (monthly income)
- 1083.33: 5 = 216.66 (fifth transferable)
- 216.66 x 24 = 5,199.24 (maximum financial amount)
As you have seen, these are quite simple calculations to perform, try to calculate your fifth transferable by entering your data, you will see that it is simple to obtain an approximate data.
For completeness of information, know that to obtain an accurate calculation of the fifth transferable amount of your pension, you can ask for information at any social security desk.
Loans for retirees up to 90 years old
Recipients: social security retirees, former Inpdap and other entities, up to a maximum of 85 years at the end of the amortization plan, provided that the Social Security Authority is able to release the transferable portion.
Very well, you’ve almost come to an end, still a little patience, now I’m telling you everything you need to know about how to get the loan. As mentioned at the beginning, if you are over 85 years old, it is very difficult to find a bank or financial company interested in providing a loan, but as I promised you I found the solution for you.
SWA Finance in agreement with social security grants personal loans to repayable pensioners up to 85 years of age (more precisely loans whose last installment is paid within 85 years of age).
Now I provide you with some general information, but at the bottom of the article you will find the link that refers you to the page of the SWA Finance site where you will find the offer.
If you are unable to obtain a loan with them, unfortunately the alternatives do not seem to exist at the moment, the only one is to try with the loans changed (for pensioners without assigning the fifth) with all the risks associated with non-payment as the bills are executive titles.
Requirements necessary for retired people over the age of 80: first of all you have to go to the social security and ask for the calculation of the transferable quota (remember I already mentioned it), in essence the social security issues you a document where your fifth transferable is put in black and white calculated on your pension, this serves the bank as a starting point to open the file.
The required documents are: identity document, tax code and pension slip. Of course you don’t have to be reported as a bad payer or have been protested, in these cases regardless of everything you will not be able to get any loan.
The minimum amount payable for loans to social security pensioners with the transfer of the fifth of the pension is 1,200 USD, while the maximum amount is 75,000 USD.
The maximum duration is 120 months or 10 years. The TAN and APR are calculated at the moment following the indications of the Bank of Italy, at this moment, assuming an installment of 200 USD spread over a duration of 120 months, the APR is 7.84%, the total to be repaid therefore is $ 24,000, the account will instead be credited $ 16,798 therefore in 10 years 7200 will be paid for costs + interest equivalent to $ 60 per month.
Other features point by point
- Minimum installment of 50 USD, this is a constant installment in which the principal and interest portions are included;
- life insurance (this is mandatory and usually affects the cost of the operation a lot);
- compensation of 1% in the event of full or partial early repayment, 0.5% if less than one year is left to maturity. No commission if the remaining debt is less than $ 10,000;
- the disbursement of the loan takes place either on a SWA account or on another account, of course provided that the social security or other institution has issued the document of the transferable share of which I told you before;
- the debit mode is with direct withdrawal at the source, it will be all automatic you don’t have to think about anything;
- the necessary documents are: pension slip, tax code and identity document.
Here we are at our conclusions, I hope this article has been useful to you to find the right answer to your research. As you have certainly understood, it is not easy to get a loan when you are close to 90 years of age, but with a little patience you can find interesting solutions after all.
Finally, as promised here is the link to view the SWA offer.