There are 3 main factors lenders use to decide whether or not to offer you a loan as a pensioner or a retiree. These are: the lender’s age requirements; the minimum income they expect you to have; and whether they’re willing to accept a pension as part of that income requirement. Use the table below to see how these factors play out across a range of different lenders. It’s sorted by upper age limit.

Lender	Upper age limit	Minimum income	Accepts pension income	Link
Everyday Loans	75 at the start of the loan	£10,000 per year	Not specified	Check eligibility
Shawbrook Bank	75 at the start of the loan	£15,000 per year	Not specified	Check eligibility
Admiral	75 when the loan term ends	£19,000 per year	Yes	Check eligibility
Fluro	74 when the loan term ends	£850 per month	Not specified	Check eligibility
Finio Loans	73 at the start of the loan	No minimum income specified	Not specified	Check eligibility
Bamboo	72 when the loan term ends	No minimum income specified	Not specified	Check eligibility
118 118 Money	70 at the start of the loan	£700 per month	Yes	Check eligibility
My Community Bank	65 at the start of the loan	£18,000 per year	Not specified	Check eligibility
Novuna Personal Finance	No upper age limit specified	£10,000 per year	Yes	Check eligibility
NatWest	No upper age limit specified	No minimum income specified	Yes	Check eligibility
Santander	No upper age limit specified	£10,500+ for loans up to £19,999, or £20,000+ for loans between £20,000 and £25,000	Yes	Check eligibility
HSBC	No upper age limit specified	£10,000 per year	Yes	Check eligibility
Royal Bank of Scotland	No upper age limit specified	No minimum income specified	Yes	Check eligibility
M&S Bank	No upper age limit specified	£10,000 per year	Yes	Check eligibility
Churchill	No upper age limit specified	£850 per month after tax	Not specified	Check eligibility
Reevo Money	No upper age limit specified	£15,000	Not specified	Check eligibility
BetterBorrow	No upper age limit specified	No minimum income specified	Not specified	Check eligibility
Loans 2 Go	No upper age limit specified	No minimum income specified	Not specified	Check eligibility
Nationwide BS	79 at the start of the loan	£700 per month	Not specified	Read our review
Sainsbury's Bank	79 at the start of the loan	£7500 per year	Yes	Read our review
Tesco Bank	74 when the loan term ends	No minimum income specified	Yes	Read our review
Oakbrook Loans	73 at the start of the loan	No minimum income specified	Not specified	Read our review
Norwich Trust Limited	70 when the loan term ends	£1300 per month	Not specified	Read our review
Creation Financial Services	69 at the start of the loan	£9,600 per year	Not specified	Read our review
Bank of Scotland	No upper age limit specified	No minimum income specified	Not specified	Read our review
Barclays Bank	No upper age limit specified	No minimum income specified	Not specified	Read our review
Ulster Bank	No upper age limit specified	No minimum income specified	Not specified	Read our review
AIB (NI)	No upper age limit specified	No minimum income specified	Not specified	Read our review
Halifax	No upper age limit specified	No minimum income specified	Yes	Read our review
Monzo Bank	No upper age limit specified	No minimum income specified	Not specified	Read our review
Danske Bank	No upper age limit specified	£16,000 per year	Not specified	Read our review
TSB	No upper age limit specified	No minimum income specified	Yes	Read our review
MBNA Limited	No upper age limit specified	No minimum income specified	Not specified	Read our review
Zopa	No upper age limit specified	£12,000 per year	Yes	Read our review
Lloyds Bank	No upper age limit specified	No minimum income specified	Yes	Read our review
First Direct	No upper age limit specified	£10,000 per year	Yes	Read our review
Toot Loans	No upper age limit specified	£1,000 monthly income	Not specified	Read our review
Plend	No upper age limit specified	No minimum income specified	Not specified	Read our review
Lendable	No upper age limit specified	£800 per month	Not specified	Read our review
Fluent Money	No upper age limit specified	No minimum income specified	Not specified	Read our review
Minty Loans	No upper age limit specified	No minimum income specified	Not specified	Read our review
LiveLend	No upper age limit specified	£12,000 per year	Not specified

What is a retired or pensioner loan?

This is any personal loan or other form of finance that can be taken out by someone who is currently retired or on a pension. Some lenders also offer specialised types of loans that are designed for older homeowners, such as equity release.

Can you get a loan if you’re retired or on a pension?

Yes, it is possible to get a personal loan if you’re a pensioner or retired. Most major UK lenders, including Lloyds Bank, First Direct, Santander, Royal Bank of Scotland, AA, HSBC, Post Office, NatWest, Nationwide, Sainsbury’s Bank, Tesco Bank, TSB and Halifax, accept loan applications from customers who are on a pension. However, your options may be a little more limited compared to someone who is earning a regular salary. You may also find it harder to get approved for larger loan amounts unless you’re prepared to use an asset as security against your loan.

Retired people can pose a greater risk for lenders as, without a regular salary, they may struggle to meet their repayments. As a result, lenders may either offer higher rates to older borrowers, shorter terms, or simply refuse loan applications altogether.

However, some lenders recognise that retired people may make good candidates for a loan if they meet other criteria and will consider applications on individual merit. Many retired people have assets that are more valuable than their incomes, such as equity in the family home. Lenders can choose to take this into account and offer loans secured against your house, rather than more typical unsecured personal loans.

What do lenders consider when you apply for a loan?

When you apply for a loan, lenders will take a number of factors into account before deciding whether to let you borrow, including your income.

Most lenders will accept pensions as a form of income, whether that’s the state pension, a defined contribution or personal pension (those that you contribute to yourself) or a defined benefit pension (those based on your salary and how long you’ve worked for your employer).

Additionally, lenders will look at whether you earn income from a part-time job, while rental income from buy-to-let properties or dividends from investments may also be considered. The more income you have to cover your loan repayments, the more likely you are to get accepted. Keep in mind that housing benefit is not usually classed as income and won’t be counted.

Your age can also affect whether you get approved for a loan. Many lenders set a maximum age for loan applications or restrict the loan’s term so that it is paid back before you turn a certain age. Most major banks offer loans for those aged 70 or over; some lenders, including Sainsbury’s Bank and Nationwide Building Society, will let you take out a personal loan if you’re over 75; and you can still be eligible for a loan if you’re over 80, but you may find that you have a more limited choice of lender compared to someone aged under 75. This makes it very important to shop around.

Your chances of getting accepted for a loan will also be higher if you have a good credit score and have managed repayments on other types of credit well. It’s harder, though not impossible, for older borrowers with poorer credit to access loans, but you may be offered a smaller loan amount, and the interest rate charged may be higher than for someone with a good credit score. If you have bad credit, you might need to consider secured rather than unsecured loans. To apply for a secured loan, you’ll need assets such as a property or vehicle to use as collateral. If you’re unable to repay the loan, the lender could repossess these assets.

Eligibility criteria

• You have a good credit score
• You meet the lender’s income requirements
• You meet the lender’s age requirements
• You have an asset to use as security if you’re applying for a secured loan

What type of loan can retirees get?

Unsecured loans for pensioners

Unsecured, personal loans are the most popular loan option. They allow you to borrow a fixed sum of money that you repay over a fixed term, with fixed monthly payments. Unsecured loans generally come with higher interest rates than secured loans, but they don’t require you to use an asset as security.

Secured loans for pensioners

Secured loans can be particularly suitable if you’re a pensioner or retiree who now has a lower income, but owns a lot of equity in their home or in other assets. Secured loans typically allow you to borrow much larger amounts compared to an unsecured loan and interest rates are usually more competitive. Repayment terms can also be longer, helping reduce the size of your monthly repayments.

However, secured loans should be considered carefully. If you’re unable to keep up with your repayments, the lender could repossess your asset to recoup the money.

Equity release

With an equity release mortgage, you can release the equity in your home without having to make any repayments. You simply roll up the interest on the loan, which is then payable on death, or you can choose to repay the interest monthly. Equity release mortgages are suitable in some circumstances but affect your spouse and children’s inheritance so require careful consideration.

Credit cards

Credit cards also offer certain advantages over personal loans. If you need to make a large purchase, you could take out a credit card with a 0% interest period, which will allow you to pay off the expense over several months without incurring interest.

Alternatively, a money transfer credit card lets you transfer a portion of your credit limit across to your bank account. Unlike a regular personal loan, it’s possible to borrow money using a credit card without ever having to pay interest, provided you pay off your balance in full each month.

Credit unions

Credit unions are local community organisations run by members, for members. They can be a good place to obtain unsecured loans for older borrowers. You can find your nearest credit union here.

How to choose the right type of loan

To decide which loan type is best for you, calculate how much you need to borrow and how much you can afford to repay. Then work out which type of loan is best suited to your financial and personal situation.

As a next step, use an eligibility checker to check your eligibility based on age and minimum income. Then find the most competitive loan that you’re eligible for and start the application process.

What are my remortgage options when I’m retired?

If you own your own home, you could use this equity to secure a loan – in other words take out a mortgage. Typically, mortgage lenders will consider borrowers who are between 70 and 85 when the term ends, but this varies. If you’re already paying off a mortgage, then a second charge mortgage may be an option, however you’ll need sufficient income to cover day-to-day living costs plus the repayments on your borrowing.

Dos and don’ts of loans for retired people

How to apply for a pensioner loan

1. Compare your loan options to find the right loan.
2. Apply for your loan online or at a branch if your lender has them.
3. Provide basic details such as your name, address, date of birth, whether you’re a homeowner, and what
   you need the loan for, plus details of your pension payments, debts and open credit accounts.
4. Wait for the lender to check your credit history via credit reference agencies.

How long will it take to get a retired loan?

A loan application typically only takes around 15 minutes, although this varies depending on the lender. Your loan could then be approved and funded in as little as a couple of hours, or it may take up to 2 to 5 business days, depending on the type of loan.

How do repayments work on personal loans for retired people?

When you borrow through a personal loan, you pay back the amount borrowed in fixed monthly instalments. By choosing a longer loan term, your monthly repayments will be smaller. However, this also means that you’ll pay more in interest over the term of the loan. Providing you can afford higher monthly repayments, it will work out cheaper in the long run to choose a shorter loan term.

Alternatives to loans for pensioners

• Equity release or refinancing. Products such as lifetime mortgages and home reversions allow you to access the equity (cash) tied up in your home if you’re over the age of 55. You can take the money you release as a lump sum or in several smaller amounts, or as a combination of both. You can also refinance your home to release equity that has built up in your property, if you’re retired or not.
• Secured loans. These are loans in which the debt is backed by an asset belonging to the borrower. However, if you fail to repay the loan, the lender can repossess the underlying asset.
• Guarantor loans. Some lenders will allow a guarantor for personal loans who agrees to back up a borrower’s loan and steps in to make payments if the borrower doesn’t. The guarantor will need to have a good credit history and could be a friend or relative.
• Car finance. If you’re looking to borrow money to fund a vehicle purchase, you may wish to consider a car loan. There are different forms of finance available to suit a variety of circumstances.
• Remortgage. If your property’s value has increased since you bought it, you could take out a new, larger mortgage to cover the higher value and benefit from the extra money. Many lenders offer mortgages to those in their 60s and 70s, but the lender will need to check whether you can afford the mortgage before lending to you. You should also factor in the cost of any fees you’ll pay to remortgage.

Pros and cons of loans for retired people

Bottom line

When you need extra funds and you’re retired, loans can be a good option, particularly if you have a good credit history and interest rates are competitive. Make sure you shop around, check eligibility criteria carefully and do not borrow more than you can afford.

Frequently asked questions

• Are there specialist lenders for people on pensions and retired people?

  There are equity release specialists, such as Key Retirement Solutions. However, for personal loans, there are no specialist lenders. You will need to check the eligibility criteria before applying.

• Are personal loans for retired people considered taxable income?

  No. You should receive the exact amount of money you are approved for by the lender without any taxes withheld. Personal loans aren’t considered as income on your tax return either.

• What if my pension benefits are less than the lender's minimum income requirements?

  If your pension benefits are less than the lender’s minimum income requirements, you may not be eligible to apply for that specific loan. Compare some more options to see if any lenders have a minimum income requirement that works for you.

• Are there payday loans for pensioners?

  Payday loans are available to pensioners. But payday loans are an expensive way to borrow, and should only be considered as a last resort.

• Are there loans for pensioners with no credit check?

  No, your credit history will be checked whenever you apply for a loan. However, some lenders will still let you borrow even if you have a poor credit score.

• Should I seek financial advice before taking out a loan in retirement?

  If you have savings and investments, it could be a good idea to speak to an adviser about whether it is best to use some of your assets or to take out a loan.