It is just a myth that you cannot get a home loan after 60. The truth is that if you have a solid source of income and you can repay and meet all the parameters of the bank, then you can take a loan comfortably even after 60.

In the case of a loan, most people have this thing in their mind there is no chance of getting a loan from the bank after 60. But this is just a myth. The truth is that if you have a solid source of income and you can repay and meet all the parameters of the bank, then you can take a home loan comfortably even after 60. Yes, the loan repayment period for senior citizens may be kept a little less than that of normal people. Know here what the banks think about the elderly and on what criteria do they test senior citizens?

This is what banks think about the elderly

Senior citizens are a big customer segment (market) for banks. Most senior citizens have some fixed income, such as government pension, private pension, interest or dividend on investments etc. Many retired people have also done good savings before retirement, due to which they keep getting income every month. Many elderly people already have their own house, that is, they are completely free from any loan or responsibility. Overall, senior citizens are a big market for these banks. Taking a home loan for senior citizens can be a little more complicated than for common people, but it is not completely impossible.

Do the elderly get loans at higher interest rates?

Many people believe that even if the elderly get a home loan, its interest rates are higher. But this is also not true. The period for repaying a home loan is less for senior citizens, but there is no rule regarding higher interest rates. In fact, many banks give special concessions for giving loans to senior citizens. Sometimes banks also give loans to senior citizens on the basis of their rental income. Many retired people rent out their big houses and shift to smaller flats, in such a situation banks easily give loans. There are many similar ways through which senior citizens can also easily take home loans.

Eligibility for home loan for senior citizens?

Income source and Stability – Income source and income stability matter a lot in the case of home loans. If the source of income is from government pension, private pension, rent, interest or investment, then banks look at it positively. In such a situation, banks can consider giving home loans to the elderly.

Maximum Age Limit – Usually the maximum age limit for repaying the loan completely is 75 years. If you are 60 years old, then you can get a maximum loan tenure of 10-15 years. You have to do your planning accordingly.

No Prior Debt- If the senior citizen does not have any prior debt, then the bank can easily agree to give the loan. However, if the loan amount is high or the borrower is older, then the bank may ask for a co-signer or guarantor of the loan.

Cibil Score- It is important to have a good CIBIL score to get a loan. Default of any loan earlier or high credit card dues can affect your eligibility.

Do senior citizens get special facilities?

Many banks provide special facilities for senior citizens, such as flexible repayment option, bullet payment, special discount in interest rate and processing fee, many banks also provide free counseling and doorstep banking facility to senior citizens.