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Find the Best Loans for Pensioners Online | Lowest Rates

When you get to that point in your life where you cannot work anymore and become a pensioner, financing the things you need might be a problem. Today, we will show you how to find the best loans for pensioners online in South Africa, and at the lowest rates.

Can a Pensioner get a Loan in South Africa?

Senior citizens sometimes fear their loan requests might be rejected. But this is not so. Most banks offer loans for pensioners based on the same requirements they impose on all clients. So, if you are thinking of visiting your grandchildren who live far away or if you need money for medical reasons, do not despair: you will be able to borrow money from a bank.

Can Pensioners Request Instant Online Loans?

Senior citizens sometimes need extra cash for urgencies and are not sure where to turn to. Medical expenses are a commonplace as we get older and if we don’t have the money to pay for them, we are in big trouble.

There are various online platforms in South Africa that offer instant loans. If you want to compare loans in South Africa to see which one is the best for you, use our loan calculator.

Are there Personal Loans for Pensioners in South Africa?

Pensioners that need extra cash for covering their expenses can apply for personal loans in South Africa. Senior citizens can also take advantage of loans offered by online platforms. In order to qualify, pensioners should:

  • Be a citizen of South Africa

  • Provide proof of income

  • Good credit history

  • Provide documentation

How to Find Low Interest Rate Loans for Pensioners?

There is no such thing as only one interest rate. What do we mean by this? This means that rates vary both from bank to bank and to your specific conditions. The bank will determine your interest rate on the basis of your income, credit history and such. If you want to compare different loan options and the approximate rates offered, remember you can always use our personal loan calculator.

What Are the Requirements to Apply for Pension Bridging Loans in South Africa?

As the word “bridging” implies, a pension bridging loan is a kind of loan that helps you fill the gap in between a period of time when you are not receiving the money from the pension. For instance, let’s think this scenario: you’ve just retired and your pension payments are still pending. You happen to have an emergency and need to access cash, but there is no money from your pension. In this case, you can request a Pension Bridging Loan to cover those expenses and pay it off when you start receiving the money from your pension.

In South Africa, many banks and financing institutions offer this type of loan. Some of the requirements for qualifying for a Pension Bridging Loan are:

  • Having South African citizenship

  • Being about to receive a certain amount of money from your pension

  • Copy of ID card

  • Documentation proving your address

  • A note from your pension fund saying you are about to receive a pension payout

Can Pensioners Access  Car Finance in South Africa?

Senior citizens have much insecurity when thinking about financing their needs. They think they will not be able to qualify for any loan. But this is not true. In South Africa, pensioners can request car finance just like any other citizen and the requirements are just about the same.

  • Clear history as regards credit

  • Having a pension over a certain amount of money

  • Having a valid license to drive

Loans for Retired Seniors

When we are on a payroll and active employees we don’t really think about what will become of us when we retire. We start thinking about it when we’re there: when we become senior citizens. And retirees also sometimes find themselves in need of finance. Luckily, as we showed you above, senior citizens can access personal loans if they meet the qualifications every citizen should meet.

What are the Companies that Offer Pension Loans in South Africa?

Elder citizens cope with a lot of anxiety when it comes to thinking about their finances. What if I have a medical emergency? What if my house needs repairing? What if I need to travel for an urgency? These are some scenarios seniors play in their minds time and time again. But the truth is that there are many banks and financing institution that offer loans for retires if they meet the requirements. Some of them are:

  • Absa Bank

  • Standard Bank

  • African Bank

Are there Online Payday Loans for Pensioners in South Africa?

This is a type of short-term loan where you borrow money from a financing company through a convenient application that you fill out online. Pensioners can also access these type of loans if, as every other citizen, they meet the qualification criteria of the financing institution. Some of the requirements are: being a South African resident, providing documentation proving your income and address, among others.

There are many online platforms in South Africa which offer these kinds of loans and whose application process is completely performed through the Internet. The majority of older citizens struggle with technology and sometimes finds it really challenging to deal with computers at all. If that is your case, you can always ask your grandchild to lend you a hand with your application.

These loans are very useful when faced with an emergency. When something that we did not expect happens, chances are we are not prepared for it. If this situation we find ourselves in involves money, we can consider requesting a payday loan online.

What are the pros and Cons of Requesting a Loan against my Pension Fund in South Africa?

If you are in need of finance for whatever reason, taking a loan against your pension fund is a viable option in South Africa. But before you jump in to any rush decision, you need to waive in the pros and cons of this type of loan. Probably, if you get to the point of considering borrowing against your pension fund is because you are in distress. Breathe in, and read through in order to make an informed decision.

Pros:

  • If you have exhausted all other financing options, this type of loan may help you solve your problem.

  • You are able to ask for a home loan against your provident fund.

  • It may be a good way to find a solution to a difficult situation you are going through.

Cons:  

  • You may be requested to buy a life insurance naming the borrowing company as beneficiary.

  • Transaction fees may be higher than in the case of other loans.

Can I Take a Loan against my Retirement Annuity in South Africa?

According to the Pension Funds Act of 1956 of South Africa, a retirement annuity is a pension fund for those people who are self-employed. That is, it is a kind of inversion that allows you to put away some money for you to access when you are no longer in the active market. In South Africa you cannot take loans against your retirement annuity unless you are over 55 years of age. So this is not a viable option for securing a loan.

Can Pensioners Access to Home Loans in South Africa?

Senior citizens who were not able to own a home during their active years find it even harder to do it now that they are retired. Not having your own home means you have to rent one. Medication expenses, costs of leaving and rent become a hurdle for retires. There are ways a pensioner can obtain a home loan and one of them is a pension backed home loan. Keep reading to find out if this is a viable option for you.

How does a Pension Backed Home loan work?

This kind of loan, which is money you borrow against your pension fund, allows you to buy a house by securing it with the savings of your pension funds rather than with a mortgage bond. That is, you can borrow money from your provident fund to buy your house. 

Now that you know you can do it, you may be asking yourself what type of house you can buy. How much money can you invest in your new house, and the like. Well, that depends on how much money you have set aside in your retirement fund and how much you can actually afford.

By using your pension fund to secure your home loan you can either build your house from scratch or buy an already constructed house. That is completely up to you. You can also use this loan to pay off a home loan you already have.

Bear in mind that this is an important decision and you should be very certain that you will be able to pay off your loan. If you don’t pay off the loan or if you are no longer in the pension fund, the money that took you so long to save will be gone for good.

Where can I Find Pension Backed Home Loans Reviews?

Deciding to buy a house secured by your pension loan is an important decision which requires careful consideration. Reading reviews from people in South Africa who have already experienced this process might help you with your deliberation. You can read the comments made by other clients in the comment section of this article. Another method you can try is to ask people you know that have taken these steps to find out if it worked out for them.

What are the Best Loans for Pensioners?

Unfortunately, when we exit the labor market our income decreases considerably and our expenses not necessary experience the same. In fact, expenses may go up because we have a medical emergency, or our house needs an immediate repair, or our car needs service. For all these reasons, senior citizens sometimes find themselves in trouble since they need to cash out amounts for whatever need and don’t have the money.  

In this article we have discussed the different options pensioners have in hand to borrow money. Let’s review them:

  • Personal Loans from banks such as Standard Bank, Absa, African Bank, among others. Pensioners can access these loans if they meet the eligibility qualifications: being a resident of South Africa, having an income over a certain amount, proving a good credit history, to name a few.

  • Online Loans. Many online platforms offer loans to pensioners and qualifications tend to be less strict than those asked for in Banks and the process is simpler. 

  • Pension Backed Home Loan. A good way to own a house using your pension fund as guarantee.

Can Government Pensioners Obtain a Loan from the GEPF?

The GEPF is the pension fund for employees of the Government of South Africa. It is the biggest pension fund of South Africa with over 1 million members. Nevertheless, this fund does not offer loans for their pensioners. They only manage government employees’ savings through benefits such as retirement, resignation, death, funeral, child pension, spouse pension, and others. So if you are a retiree and need to borrow money, you will have to turn to other financing institution for the Government Employees Pension Fund is not an option.

Are there Home Loans for Government Pensioners?

The Government of South Africa through the Government Employees Pension Fund offers a home loan scheme for government employees. With this program, called Government Employees Housing Scheme, people who work for the state have the possibility of financing their houses. They can either buy or build a new house or make renovations to their currently owned houses. However, this option is not available for pensioners. One option senior citizens should consider is pension backed home loan offered by banks such as Standard Bank or Absa.

Does MIBCO Offer Pension Fund Loans?

MIBCO is the pension fund for the motor industry. Like in the case of the pension fund for government employees, this fund does not provide loans. It only takes care of the retirement provisions of the employees of the industry. Although this is not an option, do not worry. We have discussed several other options you can consider if you are in need of finance, such as personal loans, online loans, loans against pension funds, and other financing instruments.

What are the Requirements for Requesting CRF Home Loans?

If you are a member of the Consolidated Retirement Fund, you are in luck! This fund offers two types of home loans for their affiliates, both through the First National Bank. Of course there are certain requirements you have to meet to be awarded this loan. Let’s see which they are:

  • Being an affiliate of CRF

  • Being older than 18 and younger than 65

  • Applying for at least R5 000

  • Accept to affordability checks by the FNB

Being a senior citizen may be an obstacle when it comes to financing, but it is not insurmountable. Here we have shown you the best loans alternatives you can choose from, Online or through a finance institution for Pensioners.

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Questions and answers

What are the banks that offer pension backed home loans in SA?

Some of the banks that offer this loan are Standard Bank, Absa and African Bank.

How can I know which online loan has better rates?

You can use our personal loan calculator. There you will enter the amount you’d like to borrow and the term in which you want to repay it. Different options will pop up and you can even start your application process by clicking “get started”.

Can I get a bridging loan if I have just resigned from work? I need cash!

Yes, you can ask for a pension bridging loan if you resigned. Remember you need to meet certain requirements such as providing a letter from the fund saying a payout is due.

Leave your rating about Find the Best Loans for Pensioners Online | Lowest Rates

I asked for a loan against my pension fund last year. It worked out ok.

Thanks. I’ll consider a pension backed home loan.

Being a pensioner in South Africa is so difficult. Beware of some online loan offers which may operate illegally.

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