Typically, traditional lenders like banks are hesitant to give loans to people who aren’t currently employed and receiving steady, monthly salaries.

If you’re a pensioner, this can make it difficult to secure a loan, regardless of your financial status or credit rating.

Loans for pensioners: the options

Like anyone else, pensioners may need loans to handle emergency medical expenses, unexpected car or household repair costs, or other unforeseen costs – for themselves or to help close family members. They may also require loans to cover monthly costs during temporary tight patches, for example if the payment of pension or other funds is delayed.

Luckily, there are some alternatives to the bank when it comes to securing a loan.

Peer to peer loans

Peer to peer, or P2P, loans are a type of online service where the loan is backed by investors who use such loans as a type of investment. Because the investor decides the terms of the loan, they are often exempt from the need for a monthly salary.

However, the nature of these loans means they often have short repayment periods and high interest rates.

Loans from family or friends

One of the easiest ways to get a cash loan is to loan money from a friend or family member who can afford it. Although this type of loan is informal, it’s still wise to set repayment terms and have some sort of contract in place.

The downside of this type of loan is that it can sometimes cause rifts between family members or friends if you can’t afford to pay them back.

Micro loans

Micro loans are cash loans for amounts under R8000. They are usually repayable within 6 months or less.

Criteria for approval of these loans often aren’t as strict but the loans typically carry higher interest rates and feature much shorter repayment periods than other loans. Also expect strict limitations on how much money you can borrow.

Asset-based loans

In terms of securing personal loans for pensioners, asset-based loans are among the simplest and lowest risk options.

This type of loan is secured using a valuable asset, such as a fully paid up car that’s in your name.

Accordingly, there’s no need for:

• proof of monthly income
• a good credit rating
• a time-consuming loan approval process.

The loan amount your offered will depend on an appraisal of the value of the asset. The lender then holds the asset as collateral – and once the loan amount and agreed interest are repaid, the asset is returned to you.

Asset-based loans with Pawn My Car

Pawn My Car specialises in loans based on paid off vehicles, including cars, trucks and even boats. We’re happy to offer asset-based cash loans for pensioners and other individuals who aren’t formally employed because the value of a vehicle secures each loan.

We don’t charge any hidden fees, our interest rates comply with the National Credit Act and our loans application process is simple and transparent. We’re a reputable financial service provider with branches in Cape Town, Johannesburg, Bloemfontein, Durban and Port Elizabeth.

For more information about car title loans for pensioners, contact us on 086 172 9648 or simply complete and submit our online application form.

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