How can Senior Citizens get a home loan?

The senior citizens are the ones who are above the age of 60 years of age. Borrowers above the age of 60 years are not entitled to any regular loans. These category people are considered the senior citizens who do not have any suitable source of income. Most people are amongst the retired once, and hence the lender does not have confidence in the senior citizens’ case for the repayment of loans. The senior citizens usually aren’t even amongst taxpayers as well. As per the RBI, guidelines loans are generally approved to the ones who are amongst the taxpayers and do not hide their income. The loans can be granted to entrepreneurs who are up to 65 years of age. As there is no retirement age for the public, who are self-employed, the moratorium or the age limit available is higher for the loan approval. The home loan approval is subject to the lender’s approval, based on which it depends the loan will be approved or not; when there is a guarantee amongst the lender regarding the mortgage of the loans, then, in that case, the loans are quickly approved by the lender.

In the case of senior citizens, the loans can be granted based on the mortgage being provided by the borrower to the lender. The loans still should be repaid on time by the lender as the late payment can attract penalty to the borrower, and default can lead to seal of assets. Thus, the loans, therefore being disbursed if repaid on time, can help improve the CIBIL score of the borrower, thus leading to a clear path for future credit path. In another case, there should be the guarantor of the loans in case of loan opted by senior citizens, thus help the secure borrower loans from the lender. The lender should also submit all necessary documents of the bills/receipts/documents to the lender of the assets or properties. The borrower can lend the gold as the mortgage or the share certificate to the lender to obtain the loans to the borrower. The loans thus disbursed can be utilized for various purposes like a house purchase, renovation of the property, car purchase, funding marriage, or educational needs. The loans thus taken can also be for a very short moratorium being provided to the borrower. The loans thus can also be obtained by mortgaging the shares certificate with the lenders. For the senior citizens, the capping for the age limit is 70 years of age.

Following are the ways senior citizens can opt for loans: 

• Apply for a joint loan with co-owner:

The joint co-owners are the ones who lend the money and also buy the property with a familiar name. The borrower adds a co-owner working then; the loans can get quickly approved by the lender. Out of the joint representation, the borrower can get the loans the working person can be amongst the vital responsible people to repay the loans. Thus, the borrower should submit the documents of the joint co-owner employment details, salary slips, offer letter, etc., to get the loans approved. The loans thus approved can be utilized to buy a new property. Multiple senior citizens cannot afford to buy homes of their own even after their retirement. Some senior citizens can buy a second home as an investment destination, as a holiday home, or as an additional investment for the future generation.

• Apply for loans on the basis of pension:

The loans can be taken based on the pension as well. The borrowers who have assistance can undoubtedly repay the loans through the pension fund. In that case, the borrowers can opt for loans up to the age or moratorium till the attainment of the age of 70 years. The loans can be availed on the applicant’s name, who is a retired pensioner, while in case of demise of the person, the paid amount can be returned to the legal heir, and the lender takes over the property. In an alternate case, the borrower’s future generation can repay the loan’s total amount and get full ownership of the property.  

• Avail loan against the property:

The loan against the property is the one wherein the borrower should submit all necessary documents with the lender and avail the loans up to 60-70% of the property valuation to buy another property. The loan against the property is the one wherein the borrower quickly gets the loan approved as there is surety amongst the lenders to recover the loans. The loans can be repaid by the borrowers after the maturity of the fixed deposits or by selling the shares of an individual. Also, after the maturity of the insurance policy, the loans can be repaid.

• Avail loans by mortgaging gold, shares, or funds:

The loans can be availed by selling liquid assets like gold, stocks, or funds. If the share value is very high, then the loans can be taken based on the shares or gold. If a borrower is taking partly loans on a lower amount based property, then, in that case, loans can be taken on the liquid assets.

Conclusion:

Thus loans can be availed by the senior citizens through a loan against the property, mortgaging the liquid assets, or with the help of the co-owner as an additional holder of the property. Also, the borrower can opt for the loans on the pension amount to buy a holiday home or a second home.