Personal Loans for Retirees and Senior Citizens

Find out about your personal finance options as a senior citizen or retiree.

Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on September 12th, 2023       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

$2100
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$500
$50,000


Paid in 60 mins if approved*
Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on September 12th, 2023       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

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

Why apply for a small loan with Savvy?

Frequently asked questions

Are there any government finance options available for retirees and senior citizens?

Yes – there are a number of government assistance options available to seniors looking for financing. The Pension Loans Scheme (PLS) allows borrowers to access a fortnightly loan that increases their income to up to 150% of their maximum pension amount and, like reverse mortgages, doesn’t have to be repaid until the sale of their property (which is used as security). Pensioners can also receive an advance on their Centrelink of up to three weeks’ worth of pay, which is to be repaid within six months.

What documents will I need to apply for a personal loan?

When applying for a personal loan, you’ll need a combination of the following documents:

  • Your last two payslips (if applicable)
  • Centrelink income statements (if applicable)
  • Your last 90 days of bank statements (may be needed)
  • Information on assets and liabilities
  • Internet banking details
  • Photo ID such as your passport and/or driver’s licence
Am I able to take out a reverse mortgage on an investment property?

Yes – most lenders dealing with reverse mortgages will accept an investment property from which to source equity.

Can I use a reverse mortgage as a retiree or senior citizen?

Yes – reverse mortgages involve borrowing funds against the equity in your property, essentially reducing the value of your home in order to release funds for your use. This type of financing is more suitable to retirees and pensioners who are asset rich and cash poor, such as those who don’t have a wealth of funds in their account but own one or more properties outright.

There aren’t any set repayments with this type of finance, and funds can also be paid to flexibly as either a lump sum or steady income stream. However, having a reverse mortgage can affect your ability to receive pensions and other government benefits into the future, as well as potentially reduce the value in your home over time.

Can I still be approved if I have bad credit?

Yes – cash loans can be taken out by borrowers who have an imperfect or bad credit score. As mentioned previously, these loans are assessed more on the borrower’s ability to repay it than their credit score. Otherwise, providing security and showing evidence of sufficient income could help your chances of approval for a bad credit personal loan.

What fees will I pay on a cash loan?

Cash loans come with a maximum establishment fee of $400 and charge monthly fees which can't exceed 48% of your loan amount in total over the course of a year. Therefore, if you took out a $2,500 cash loan, your establishment fee would total $400 and your monthly fees would come in at $100. Your establishment fee is spread out over the course of your loan, so a cash loan repaid over ten months would look like:

  • Monthly principal payment: $250
  • Monthly establishment fee payment: $100
  • Monthly fee payment: $40
  • Monthly payment total: $390

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Disclaimer:

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.