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Generally banks avoid giving home loans to senior citizens. He believes that elderly citizens have no solid source of income after retirement. Apart from this, they may also have to face health related problems and if any unexpected incident happens, their debt may also get stuck.
However, it is not that banks always avoid giving loans to retired and elderly citizens. If senior citizens keep some things in mind then they can also get a loan.
Focus on reducing risk
If you take a joint loan, the bank's risk is reduced. In such a situation the chances of getting the loan approved increases. If your son has a good salary then you can make him a co-applicant.
Secured loan will be approved soon.
You can take a loan against assets like property, gold, FD, stocks or mutual funds. Loan taken against property is secured. In this, banks have the scope to recover their debts by selling the bank's assets in case of any irregularities.
In such a situation the loan gets approved easily. If your credit score is good then things will become easier.
Keep the loan tenure short
The biggest problem for senior citizens while taking a loan is age. Banks feel that if any untoward incident happens, their loan will get stuck. In such a situation, you should keep the loan repayment period as short as possible. Making a higher down payment may also be an option.
The condition of banks is that their loan should be completed before the age of 75 years. Meaning that if you take a loan at the age of 70, you will have only 5 years to repay it. In such a situation, the EMI burden may be higher.
You can also take loan from NBFC
If being a senior citizen, you are facing difficulty in taking loan from the bank, then you can also go to NBFC (Non-Banking Finance Company). Even if your credit score is low and your age is high, NBFCs still give loans. However, they charge higher interest than banks.
