Every now and then there are signs in the media that the pension fund is collapsing because we have too many retirees and an under-working population.
But what is not said is that almost a quarter of our retirees live on a pension of 1,500 kuna, which is not enough for food, let alone anything else. The average pension is no better, amounting to HRK 2,300, while the cost of living exceeds HRK 5,000. The math is quite simple.
Retirement Loans: What is the attitude of banks, and what kind of credit houses?
Listening to the needs of retirees who were a neglected group until recently, credit houses designed special loans for retirees. Until recently, banks considered retirees too high a risk to their business, especially those with low pensions, so they were automatically prevented from seeking loans.
Retirement loans are based on smaller amounts, a short repayment period and a fixed interest rate. They are intended for retirees seeking non-purpose loans for cost of living reimbursement, extraordinary travel, medical examinations and the like.
Retirement loans are based on a fixed interest rate and a short repayment term
One of the biggest benefits of this type of retirement loan is the fact that it can be claimed from the comfort of your own home. It means a lot to those who cannot move, and this is how their children or grandchildren can do everything online.
The documentation required for retirement loans is kept to a minimum and includes everything they already have at home, which is an ID and current account card. There is no need for collecting certificates and requests or going to the office. The money is paid out as soon as possible, no later than 24 hours after the application is submitted.
Retirement loans for retirees with foreign pensions
In addition to pensioners with a domestic pension, in recent years, there has been a return of expatriates in Croatia who earned their pension abroad. A large number of people were looking for a better future primarily in Austria, Germany, Canada and Australia in the early 60’s when the borders opened. However, when seeking loans for retirees, they encounter problems because banks require their clients to register in Croatia, and many of them do not.
Most of them give up right from the start because they have neither the will nor the will to deal with bureaucratic problems in getting something that should be quick and easy. Credit houses have recognized the potential in retirees with foreign pensions. They do not rely on a place of residence, but require clients to open a checking account and regular income. Financial tidiness is sufficient for retirement loans.