Are you retired and living life without the stress of workload? Even if you are enjoying being at leisure but still there may be a situation when you are out of funds and just could not able to deal with some unforeseen or important financial requirements. Emergencies cannot be predicted in advance. You never when unexpected expenses can happen in your life. In order to arrange extra cash to cover the cost of unexpected bills, you may plan to take up loans for pensioners.
Borrowing Options For Pensioners
There are limited financing options available for the pensioners or retirees. This happens because it is hard to convince lenders about the repayments when you don’t have regular income and are living your life on a pension cheque for covering your day to day expenses. If you have certain savings in your account, then there is a great chance of convincing lenders about you can able to make repayments and therefore can borrow more money from a lender.
Personal loans: It is likely possible to find a lender that can offer you personal loans for handling the times of financial crunch with ease. The rates and fees on these loans may vary from lender to lender. Collect and compare loan quotes from different lenders carefully and find the right deal on personal loans that fit your needs and your ability to repay the loan.
Reverse mortgage: These loans are basically designed for all those pensioners who are asset rich and do not have enough cash in hands. It allows the pensioners from the age of 60 to reverse the equity in their property into cash. In order to avail such financing option, you don’t need an income to qualify and there is no need to make repayments. But like any personal loan, interest and fees is charged. Here you can able to pay off the loan to the lender, when the borrower sells the property, moves into a retirement home or the last surviving borrower dies.
Know About The Australian Government Implemented Borrowing Options
Pensioner loan scheme: This kind of scheme allows you to access capital tied up in assets to get the extra financial help in bad times.
Advance payment: If you have been receiving regular pension payments, you are considered eligible for an advance payment of either one or three week’s pay. It is required to repay back the borrowed amount within six months. No interest is been charged on advance payment.
No interest loan scheme: Under such kind of financing scheme, you will be able to borrow an interest fee amount up to $1,200. You can freely use the borrowed cash to take care of any sort of unexpected expenses on time like to pay for utility bills, small medical emergencies, urgent household expenses etc. To apply for this scheme, you must hold a pension card.