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Compare loans for people on pension
Just because you receive a pension, doesn’t mean you can’t take out a loan.
Not all lenders work with people who receive their main source of income from retirement benefits or Social Security. That’s because many lenders prefer to work with borrowers who are employed full-time. Online providers often have more flexible requirements than banks — though not all accept applicants that rely on a pension.
What types of pensions are considered by lenders?
Pensions in the US are offered by some employers and also by the government to senior citizens and those with disabilities.
- Employer retirement benefit. Some employers offer pensions as a retirement benefit to employees. The amount you’ll receive in retirement is calculated by a formula determined by your employer. Although many employers now offer 401(k)/403(b) retirement plans, some still offer retirement benefits in the form of a pension.
- Social Security. Social Security provides retirement income to people of a certain age after they retire from their careers. Social Security also provides disability income to people with certain disabilities who are unable to work.
There are lenders who consider disability benefits a form of income along with employer and Social Security retirement payments when evaluating your ability to repay the loan.
How to apply for a loan on a pension
The table above can be a good starting point to find a loan for people who rely on a pension as their main source of income. You can click on the name of the lender to read a review, and you can click “Go to Site” to submit your application. If you have questions regarding your eligibility, you can contact the lender directly.
Personal loan applications are counted as inquiries on your credit report. Inquiries play a factor in your overall credit score. Lenders may also view too many inquiries as a red flag. To keep your credit in good standing and improve your chances of approval, you may want to consider limiting your number of loan applications.
To apply, you’ll need to provide personal information including your name and contact details, as well as financial information regarding your pension payments, assets, debts and open credit accounts.
Can I get an advance on my pension?
Yes, but they’re one of the more expensive options out there. These loans are typically called pension advances, pension sales, pension loans or pension buyouts. Here, you sign over your monthly pension payments in exchange for a loan — often between five and 10 years.
They’re similar to payday loans in that they’re one of the most expensive financing options out there, with APRs easily topping 100%. Some lenders also require borrowers to purchase a life insurance policy naming it as the beneficiary — an extra expense.
The Consumer Financial Protection Bureau (CFPB) warns against borrowing from a pension advance company that claims it’s endorsed by the VA: It’s illegal for lenders to take military pensions and veteran benefits. Former servicemembers are ineligible for a pension advance unless they receive a pension from elsewhere. Either way, it’s an expensive option meant for absolutely emergencies.
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Ask a question
I am from Romania,I want to know if it is possibile to apply for a loan from out of the country,how can I do ?
Hi Daniel,
Thanks for leaving a question on finder.
Unfortunately, the lenders featured on our website only caters to residents from the US, Australia, UK, Canada and New Zealand. You will have to check with your local lenders if you are not from those 5 countries I mentioned. Sorry about that.
Cheers,
Joel
Can I get a loan that is related by my pension?
Hey Edward,
Thank you for reaching out to us.
You’re on the right page to check out lenders that consider applications from pensioners.
Before applying, please ensure that you meet the income requirements and to read the details, as well as the relevant Product Disclosure Statements/ Terms and Conditions of the option before making a decision and consider whether the product is right for you.
I hope this helps.
Best,
Maria
I want to loan only R500 to buy food where can I get such a loan?
Hi there!
Thank you for contacting Finder.
Generally, it is possible to take a R500 loan if you meet the eligibility criteria of the lenders. Please note that the lenders listed above are for US-based pensioners.
If you are in India, consider applying for a pensioner loan with a local lender.
Cheers,
Danielle
Hi i have monthly benefits and living in the Philippines with a FPO addtess and a cellphone number
With bad credit score
How i can get cash loans?
Hi Imelda,
Thanks for your inquiry.
Actually, the page above already provides you with options on loans for people on pension. Now, you have to check the eligibility requirements they have before applying for a loan.
Hope this information helped.
Cheers,
Arnold
Can I get a pension loan off my VA monthly pension?
Hi Peter,
Thank you for your inquiry.
The approval of your application may vary depending on the lender. If you have questions regarding your eligibility, you can contact the lender directly.
I hope this information has helped.
Cheers,
Harold