Reaching for financing offers, we always ask ourselves one of the most important question: Will I get a positive decision in the process of applying for a loan or a loan? To answer this question, a bank or non-banking company must carry out a risk assessment.
Risk assessment is a multi-level verification of us as a potential borrower, and its degree of insight and sophistication depends on the product we apply for. One of the elements that is assessed when verifying the Customer as a potential borrower or borrower is his age. So how old do I have to be to make a commitment? What is the borrower’s ideal age?
Minimum age criteria, i.e. the borrower’s ideal age
A loan, bank loan or non-bank loan is a form of transaction and it is necessary to sign a contract to conclude it. Admittedly, in the article “What is the difference between a loan and a loan? What is the significance of this difference for the consumer? ”(Available here) we wrote that the loan does not require a contract, but we specified specific types of loans, i.e. bank and non-bank loans which are not subject to this rule.
In order to take a loan or a loan in Poland, I must have full legal capacity, and therefore I must be at least 18 years old. And it is the age of 18 that is minimum to receive funding from a legally operating institution.
This does not mean, however, that every bank or non-banking company must give a loan or credit to a person who has reached that age. Age criteria may be more conservative.
How is the maximum age calculated and reported?
The maximum age to which I can contract is not regulated by law. Until I have full legal capacity, I can take a loan or a loan. Of course, the legal capacity can be taken away from me or limited, but this is a topic for another article. Finally, the financing institution will take into account demographic data and loan / loan portfolio statistics when indicating the maximum age.
On this basis, it will determine the risk associated with the death of clients in individual age groups and calculate at which point the risk becomes so high that it does not pay to provide financing. Importantly, the age that we find in product materials, product sheets, etc. will most often be given at the time of repayment. It will be best if we trace this mechanism on an example.
Let’s assume that for the mortgage offer the bank states that the maximum age of the borrower as at the date of repayment of the liability is 65 years. The customer is 42 years old at the time of submitting the application. The maximum period for which he can therefore incur this commitment is 23 years.
What is the maximum age?
According to CSO 19 statistical data, the average life expectancy of women in Poland is 82 years, and men 74 years. It is of course important for the financing institution that the borrower gives away the commitment before his death. Institutions do not divide clients into gender.
Finally, the borrower’s maximum age depends on the institution and the product. There are offers for which it will be 65 years, we will find products with a limit of 70 or even 75 years.
Above this limit, it will be difficult to find an offer for a customer, although not impossible – as at the day of writing this article, there would be an offer for 80 years old. But in a non-bank institution and in an amount not exceeding several thousand.