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Loans for retired seniors

You can still access finance if you are retired. Read on to find out your options.

Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Establishment Fee
Lending Crowd Personal Loan
5.03% -19.30%
2, 3 or 5 years
$200 - $1,450 depending on the amount borrowed
Eligibility: Be a NZ resident/citizen and have a good credit score.
Secured and unsecured personal loans from $2,000 to $200,000. 100% online with no paperwork or early repayment fees.
Nectar Unsecured Personal Loan
8.95% - 29.95%
6 months to 4 years
Eligibility: Must be 18+, an NZ citizen or permanent resident, have an income of $400 per week or more (after tax) and a stable credit history.
Unsecured loans from $1,000 with payouts made within one day of approval. Applications entirely online.
Save My Bacon Unsecured Flex Loan
8 - 52 weeks
Eligibility: Be 18 or over, have an income of at least $400 per week and be a NZ citizen, permanent resident or have a valid work visa.
Medium-term unsecured loans from $1,000 to $5,000 with no hidden fees.

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As you move into your older years, your lifestyle may change and so do your finances. When that happens, you may find accessing finance is not as easy as when you were earning an income from employment. However, some lenders will consider loans for retired seniors.

These loans can help you access money if you don’t have sufficient time to save for a large purchase or unexpected expense, or if you don’t want to dip into your equity.

What type of retirement situations are considered?

  • Self-funded retirees. If you earn income from investments, such as rental properties, superannuation, or your nest egg, you are referred to as a self-funded retiree. If you are in this situation you may require access to finance because you don’t have cash assets available or you need quicker access than your situation allows. While your situation can make it difficult for some lenders to assess your suitability, you are may still be eligible for a personal loan. Make sure you have as much documentary evidence of your assets and income as you can locate, to prove to the lender you can manage the loan.
  • Those on a pension or supported living payment. Earning Work and Income payments, even if it is your sole income, does not necessarily disqualify you from finance. Loans for retired seniors require a minimum income amount and you may still be eligible if this money comes from WINZ.
  • Older New Zealanders who are still employed. If you have steady employment, even if it is only part-time, this income is considered by lenders. Remember minimum income criteria applies to loans for retired seniors, so check this before submitting your application.
  • Non-residents. The majority of lenders will require that you are a New Zealand citizen or permanent resident. However, some lenders consider non-residents for loans even if they are older.
  • Retirees in difficult financial situations. If you receive a low income due to your family situation, debt, or are in need of emergency finance, there may be options available. Contact your local Community Law Centre or Citizens Advice Bureau for advice. If you have a Community Services Card, you may be eligible for an interest-free loan of up to $1,500 or a low-interest loan of up to $5,000 from Good Shepherd.

Types of loans for retired seniors

There are different types of personal loans available to you as a retired senior.

  • Secured personal loans. A secured loan requires you to attach a high-value asset as a guarantee, and in return, you can borrow the value of that asset. Examples of assets include vehicles, term deposits or equity in your home.
  • Unsecured personal loans. You don’t have to attach an asset to this loan as it’s unsecured. You can use an unsecured loan for investment purposes, to take a holiday, buy a used vehicle or to consolidate debt.
  • Car loans. If you are looking to purchase a new or used vehicle you can consider a car loan. These loans offer competitive rates because the vehicle you purchase is used to guarantee the loan.
  • Reverse mortgages. A reverse mortgage offers you a line of credit, regular income stream or lump sum payment by borrowing against the equity in your home. While traditionally thought of as high-risk, reverse mortgages are becoming a more mainstream borrowing method.
  • Overdrafts. This is a convenient credit product that lets you draw over and above your account balance in your everyday transaction account.
  • Short term loans. If you have bad credit or need emergency finance, a small or short-term loan may be worth considering. Bear in mind the high cost of these loans before you apply.
  • Debt consolidation loans. Some loan options are specifically tailored to debt consolidation if that is the loan choice you have in mind.

How do I know if I’m eligible?

If it isn’t clear if you meet the minimum eligibility criteria, for example, you may have income from investments that aren’t “regular”; then it is best to get in touch with a lender before submitting an application. Every personal loan application is listed on your credit file and can hurt your chances at being approved for subsequent loans. Lenders can’t tell you for sure whether you are approved until you submit an application, but they may be able to clarify certain criteria or provide you with additional details.

To give yourself the best chance of being approved, make sure you have all your information on hand before starting the application process. This includes:

  • Personal information. Your name, contact, identification information and details regarding your family situation.
  • Loan details. How much you need and the purpose of the loan.
  • Finances. Remember to include all sources of income. You also need details of debt and expenses.
  • Assets. What assets do you hold? Include your home, rental properties or vehicles.

You may be able to save the form, if you don’t have all of your information on hand, and come back to it later, or download a PDF of the application form from the lender’s website to find out everything you need before you start. Personal loan applications usually don’t take more than 10 to 15 minutes to complete if you have all of your information on hand.

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