Some lenders may refuse your request for personal loans if you are retired. This is because they prefer giving loans to people who have a decent income, in other words, individuals who are still working.
A retired person may not have the financial capabilities of a working person. Because of that, a retired person can be seen as a risk to many lenders. Fortunately, some lenders can accept your request for a personal loan. All you need to do is find the best one and prove that you can pay them back. One good option would be www.personalloanss.com.au, a lender that offers flexible loans even for those who have bad credit. If a reliable loan is what you are looking for, then they are worth a second glance.
Here are some personal loans that you are eligible to once you retire:
- Vehicle Loans
These loans can be used if you want to finance a car purchase. It can also be utilised for a second-hand vehicle if you so desire. These types of loans can come with competitive rates. The reason behind these rates is that the car you buy is used to guarantee the loan.
- Secured Personal Loans
If you have a high-value asset, you can use it as a guarantee for this loan. If your asset is worth five thousand Australian dollars, you can borrow a loan of the same value. You can use your car, the equity in your home or term deposits as assets for your secured personal loans.
- Unsecured Personal Loans
Unsecured personal loans don’t require an asset attached to them. These loans can be used for financing a holiday, for debt consolidation, to pay for a used car or other investment purposes.
- Debt Consolidation
If you need some help with those daunting debts, you can ask your lender for a debt consolidation loan. As a retired person, you are eligible for this financial service because people can retire, but their debts don’t.
- Short Term Loans
If you have an emergency or need a small loan with a short payment term, then a short term loan might be the right option for you. Just be careful of the costs of these loans, some of them will come with a high interest rate to compensate the short term for payment.
- Bad Credit Loans
Some people enter retirement and still can’t fix their credit file. If you are having trouble with bad credit, you can still be eligible for a personal loan, mainly a bad credit loan. Some loans can get to five thousand Australian dollars or more, so you can get a decent loan.
- Reverse Mortgages
Reverse mortgages can offer you a line of credit, a lump sum payment or a regular income stream. This loan works by borrowing against the income of your home. They may be high-risk but more and more people are looking for this type of loan.
Before you apply for any loan, remember to discuss with your lender first. Also, talk to an expert and see if there are other options out there. As you can see, a retired person is eligible for several types of personal loans. They may not have a high value, but these loans can help them when they’re in need.