What is the maximum age to apply for a loan?
For some time, when it comes to loans, many have been wondering if there is actually an age limit or not.
Looking at the regulations envisaged by the main credit institutions present in Italy, we can say that the limit is up to 75 years of age. These do not have to be done when paying the last installment.
Obviously there is a reason why this age was chosen since many banks consider it fundamental to have a certain guarantee of returning the money in advance.
And if we take into account that life expectancy tends to drop beyond 75 years of age, we understand why many banks have set this type of limit. A very important aspect that should be considered is that it is not the maximum age in which to apply for the loan, but the age that is reached for the payment of the installments foreseen for the repayment of the amount of money to the bank. Some notable exceptions for loans
The limit universally recognized by the main banks is that of 75 years
For a loan. Yet it is worth mentioning some particular cases: there are certain lenders that guarantee loans even to people over 80 years of age, even though it is therefore a rather low life expectancy.
However, there are fundamental conditions that cannot be ignored, such as guarantees including good life insurance and also the possibility of paying a debt repayment in the event of death.
In addition to remembering that among the conditions there are also the pension, which must be high enough to allow the payment of the installments foreseen for that loan. And without forgetting an accurate assessment of the state of health which thus allows you to have a sort of natural guarantee as regards the person who receives the loan at 80 or even 90 years.
It should be noted that among the conditions provided for loans over 75 years there are also quite high interest rates based on increasing age: so a 90-year-old person will have higher rates than a 75-year-old.
The conclusions: what to know about loans beyond a certain age
When it comes to loans for people of advanced age it is good to remember that many lenders provide guarantees of a certain level. So this is certainly not an easy possibility, but that some banks still provide. It is important to know that the loan term is calculated taking into account the future age of the person requesting it.
To understand this, one can think of a 70-year-old person applying for a loan : obviously a division of the installments will be studied in such a way that it does not reach an excessively high age and that it could be a problem not only for the person, but even for the same bank.
The maximum duration that is usually accepted is five years so that those who request it do not risk leaving a debt to be paid to their heirs and that there is a certain guarantee for the bank.