We agree that procuring a home loan for senior citizens could be challenging. Lenders are hesitant due to uncertainties like unsteady cash flow and failing health. These factors can determine the repayment capability. Banks fear that aged individuals are more likely to miss out on EMIs due to low income. But it is never late to invest in a property. Homeownership, regardless the age, ensures stability, peace of mind and sustainability. It is a big emotional investment as well. There are plenty of ways in which retirees and pensioners can improve their eligibility to get a loan via the mobile finance option.
A strategic approach can reduce the risks of loan rejection. You can materialise your dream of owning a home even in your 60s and above. Take a look.
1. Short Loan Tenure
The leading Indian banks offer a loan repayment tenure of up to 30 years. But this will not be a practical option for senior citizens due to low life expectancy. There is an increasing chance of falling sick which can impact your lifespan. You will have less time to repay the loan. But banks have to ensure that they can recover the whole amount on time.
So, it is a good idea to opt for a small tenure through a personal loan app. Lenders will have an assurance that there are better chances of repayment without defaulting. It boosts your chances of approval.
2. Add a Co-Applicant
They can be a family member with good credit scores and solid earnings. This way lenders are more likely to approve the loan easily since a steady cash flow and re-payment history get factored in. Make sure the co-applicant is young as well. It can help you overcome borrowing constraints and boost the chances of longer tenure with low-cost EMIs.
A good credit profile can also mean lower interest rates depending on the bank’s discretion. Mobile loans are available via apps to help seniors apply with just a few clicks.
3. Borrow a Small Amount
The age and income of seniors are two factors that can put a cap on the loan amount. The primary reason is the risks of lower longevity than youngsters. So, you can opt for lesser funds beforehand to minimize the chances of application decline. Use a mobile finance app to apply for small instant loans online. It can increase the chances of approval since lenders have lesser risks. You, on the other hand, can enjoy affordable EMIs.
4. Pick a Secured Loan
Involving securities like your home, mutual fund investments or similar assets strengthen the chances of a loan. Lenders will have a backup option in the event of insolvency. They can use the collateral to cover up the loan debt. Thus, the lending criteria would be relaxed for senior citizens which would be otherwise tough.
Getting a loan for senior citizens might not be a cakewalk. But putting these tips into action can increase the odds of getting it approved with minimum hassle.
