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Retired person home loan

Retired Person Home Loan: Best Tips 2022

Due to the lack of basic idea about home many retired people cannot increase their chances of loan approval. Here is some tip.

Many retired people have a dream to enjoy the rest of life in peace with their own house. It is not easy to buy a house and avail of a home loan as the age grows. Living a comfortable life in your own house have a dream of all after retirement. 

Banks and financial institutions offering home loan interest rates @6.90 per annum for retired people. Through home loan rates are at an all-time low. Retired people often find it difficult to avail of a home loan. Though some banks offer special loans

 for pensioners and retired persons.   

Many retired people are not aware of some basic factors that can increase the chances of loan approval and relieve them of liability.   

Banks, Financial Institutions, and non-banking companies cross-check and verify the relevant documents of retired people seeking home loans. Banks decide the loan amount and loan tenure. Retired persons cannot take loans for periods of more than 70 years old.  That means a retired person aged 60 years can take a loan maximum of 10 years. Retired people must apply for short-tenure to approve loans easily. 

Loan Amount should be lower: 

Retire People must apply for loans for lower amounts. That means the retired applicant must be ready to bear the burden of contributing the major part of the property cost. 

Co-applicant Addition Helps: 

Retired people looking for a higher loan amount must add a co-applicant. Co-applicant should have stable income sources and high credit score. This is because a retired person is eligible for only small loans for small tenure. Applying for a joint loan with someone who is younger and high-income source availing a high loan amount for a longer tenure.

Many retired fears taking a loan due to high EMI with a short tenure period. This problem can be solved by adding a co-applicant.

Providing Insurance : 

Banks and lending companies insist to take insurance along with the home loan to prevent bad debt. Insurance is not mandatory through buying a home. However, a retired person who has already bought an insurance cover need not avail of the home loan insurance facility and can optimize for offering their term insurance policies as collateral for the loan. If a retired person has not taken any term insurance should buy home loan insurance for repayment of the entire loan amount in case of the sudden death of the borrower.

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