Granting financing over retirement age is an exception and a conditional with guarantees

Bankers said that most banks and financing companies put a maximum life when providing various loans and financing, including financing for a car or credit card, where the last payment of financing should be at the age of 60 for the resident, and 65 years for the citizen, noting that any approvals over this age, an exception, and the condition that there is another regular source of income or guarantees such as real estate, deposit or others.

This came, commenting on inquiries received by «Emirates Today» related to the rejection of banks of financing requests for customers over the age of 60 years of residents or 65 years of citizens.

In detail, the banking expert Awatif Al -Harmudi said that the prevailing custom among banks is to grant funding, taking into account the condition of the agent’s age, meaning that the payment takes place at a maximum of 60 years for the resident and 65 years for the citizen.

She explained that there are exceptions, but it is done after studying and after making sure that there is a regular income for the customer after that age in a way that does not create the risks associated with financing, pointing out that this applies to the citizen for the greatness as he will not leave the state and has a pension or income from a property or others.

She added: «Usually the periods of payment of funding are arranged on a certain number of years so that the last installment is with the agency of the age of 60 for the resident and 65 years for the citizen, and this segment of customers is not targeted by marketing employees, unless they are confirmed that there are other assets that can be reserved as a guarantee or another fixed and regular income.

For his part, the banker Tamer Abu Bakr said, “Granting a credit card to the customer is approved one year before the retirement age as a maximum, while the rest of the funds must be paid the last installment of it with the age of 60 for the resident and 65 years for the citizen.”

And he explained: “If the customer has only two years before the retirement age and requests a personal financing for example, then the bank determines the period of payment for only two years, and not four years even if the customer requests the last period, as the bank refuses in this case, unless his condition is studied and he has guarantees, deposits or others.”

In the context, the banker Mustafa Ahmed said: “It is better for the customer not to apply for a personal loan or any financing as long as he approaches the retirement age, so that he does not carry financial burdens as a result of the pressure of the payment periods to become suitable for the remaining months in his work before he reaches the retirement age, whether 60 for the resident or 65 for the citizen.”

He added: «It is true that some of the employees have expanded for the employee for a year or more, but this extension takes place every year, and not for a period of three or four years at once, and this does not reassure the risk departments of banks, and therefore the financing requests are rejected.

He pointed out that some banks are considering granting exceptions, but the number is very few and most of them are for citizens, and they are limited to financing a car with other sufficient guarantees.