Personal Loans for Retirees and Senior Citizens
Find out about your personal finance options as a senior citizen or retiree.
There are still several ways you can secure a loan to suit your financial needs, even when you’re a senior citizen or earning an unconventional, non-employment income. It’s important to know the options at your disposal, so you can find and compare the best offers on the market with Savvy.
Which personal loans can I be approved for as a retiree or senior?
There are several different types of personal loans available to retirees and senior citizens. However, it’s important to understand that these are only open to those who can support the required repayments comfortably. Your own personal financial situation may be able to support one, or all, of the following loan types:
Unsecured personal loans
The simplest personal loan to apply and get approved for, unsecured personal loans are a flexible finance option. Because of their lack of security requirements, they can be processed in a shorter timespan than secured loans. They can be granted for up to $75,000, although you’ll only be approved for an amount you can afford to repay.
However, these loans are difficult to be approved for if your income isn’t entirely stable and regular. Because of the lack of security to fall back on, lenders see them as a greater risk to be taking on. Additionally, rates and fees are higher in unsecured loans than those with security.
Secured personal loans
Secured personal loans are perhaps the best option for asset-rich retirees and senior citizens looking for personal financing. These involve utilising an asset as security for your loan, which can include a vehicle, equity in property or valuable jewellery, art and metalwork.
The added security brings with it lowered rates and fees, as well as potentially increasing your borrowing power up to beyond $75,000, but most importantly increases your lender’s confidence that their sum will be repaid. As such, many retirees and senior citizens may find that their rate of success improves with an asset as collateral.
Small personal loans
These stand in contrast to the other two loan types, as their eligibility criteria are far broader. The nature of these loans is such that most people could apply and be approved for finance within the day and sometimes within the hour.
These loans can range from $2,050 to $5,000 and can be repaid over as short a period as 16 days all the way up to two years. Like personal loans, these funds can be utilised however you wish, and even repaid early to save on fees. If you don’t earn a regular income, this is likely to be the only personal loan option for you.
Eligibility for a personal loan
Seniors who are still employed
If you’re still earning a consistent income above the minimum $26,000 requirement that applies to almost all unsecured and secured personal loans, you shouldn’t have any trouble being approved. You'll need to ensure that you’ll be working for the duration of your loan period, however.
Why apply for a small loan with Savvy?
Frequently asked questions
Helpful small loan guides
The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.
For loans between $2,050 and $5,000, the APR is between 21.24% (minimum) and 48% (maximum) per annum. Comparison rate of 65.4962%. Minimum term is 16 days and maximum term is 24 months. The cost of the loan is a $400 establishment fee and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 3 months with an APR of 48%, (comparison rate of 65.4962%), will have an establishment fee of $400, monthly repayments of $1,225.20. Total repayments of $3,675.60 and total interest payment of $275.60.
Warning: A comparison rate indicates the true cost of a loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.