Getting credit on a pension: the retiree's guide

A loan for a retiree is credit repaid out of a pension, basic and supplementary, sometimes topped up by a survivor's pension or income from savings and property. French law sets no age beyond which you may not borrow. The real question is finding a lender, and an insurer, willing to accept the age you will be when the contract ends.

To a bank, a pension has a rare quality: it arrives every month, depends on no employer or order book, and is index-linked. The obstacles lie elsewhere: the price of death cover, shorter terms and occasionally prejudice at the branch counter. This section gathers every solution for borrowers aged roughly 62 to 90, including British, Irish and North American retirees living in France on pensions from home.

Why a pension reassures lenders more than you might think

A retiree cannot be made redundant. The income is known to the euro from the payment statements of the Assurance retraite (the basic state pension fund) and Agirc-Arrco (the supplementary scheme), and it barely varies. For a credit analyst, that is very high-quality income, provided the budget leaves enough to live on once the instalment is paid.

The real issue is the time horizon. The older the borrower, the higher the chance of death during the loan, and the more the insurer charges. That is why a 66-year-old easily gets a five-year car loan, whereas a fifteen-year mortgage at 74 calls for an application built around security.

What changes compared with a working senior

A retiree needs no job-loss or incapacity cover, which lowers the premium. On the other hand, the Lemoine law no longer waives the health questionnaire, because the loan cannot end before age 60. The paperwork changes too: pension statements and tax assessments replace payslips. If you receive a UK State Pension or a US Social Security benefit, the annual award letter plays the same role.

Example: a retired couple on 2,900 € a month

Michael, 69, and Annie, 67, receive 2,900 € in pensions between them and own their home outright. They want 25,000 € for a second-hand motorhome. Over 72 months at 6.2 %, the payment is about 417 €, or 14.4 % of their income. They are far below the 35 % benchmark and the APR stays under the 8.56 % usury ceiling.

When should the term be shorter?

If Michael asked for a 150,000 € mortgage over twenty years, he would finish at 89, which few insurers will cover. Over ten years, with a deposit from the sale of their house, the file becomes financeable again. The rule of thumb with a high-street bank is to aim for a final payment before 80 to 85.

Finding the right page for your age and project

The section is organised by project and by age band, because lenders do not apply the same criteria at 65 and at 80. The table points you straight to the relevant pages.

Security that replaces or supplements insurance

Retirees often hold assets that can serve as security: a pledged assurance-vie policy, a mortgage on a debt-free property, or jewellery deposited with a Crédit municipal, the municipal pawn bank. Such security reassures the lender and can reduce the share that needs insuring, sometimes to nothing. The pages on loans without borrower insurance and on pawn loans explain how.

The lifetime mortgage: borrowing with no monthly payments

From 60, a homeowner can obtain a sum secured on the property and repay nothing during their lifetime. In 2026 Foncier Reversimmo offers it through the Banque Populaire and Caisse d'Épargne networks. Rolled-up interest reduces what the heirs receive, but the debt can never exceed the property's value.

Pension funds: check the grants before borrowing

The Assurance retraite, Agirc-Arrco and the MSA (the farming social security fund) pay grants for staying at home, adapting housing or getting through a difficult patch. Some never have to be repaid. Applying before signing a loan reduces the amount you need and improves your profile with the lender.

Refusals and mistakes to avoid after 62

A few errors crop up in most refused applications. Correcting them often changes the answer at the next bank.

• Asking for too long a term: insurers cap the age at the end of the loan. Offer a shorter term with a deposit.
• Leaving out a survivor's pension or rental income: every regular income should appear in the file.
• Piling up revolving credit: at up to 23.60 % for small amounts, it eats away what you have left to live on.
• Taking the bank's insurance without comparing: an outside policy is often much cheaper after 65.
• Giving up after one refusal: high-street banks, specialist lenders and brokers do not use the same grids.

Fallback options if a standard loan fails

Debt consolidation lightens existing repayments. Supported personal microcredit finances small projects for modest pensions. A loan between private individuals, backed by a written acknowledgement of debt, and an honour loan for a community or business project complete the range. For a short cash advance, a pawn loan requires no income check at all.

Steps to a successful application

1. Gather pension statements from every scheme, French and foreign, and your latest tax assessment.
2. Calculate what you will have left after the instalment, fixed charges and health costs.
3. Choose a term compatible with a realistic age at the final payment.
4. Request an outside insurance quote and check the age limit of each guarantee.
5. Prepare an alternative form of security in case insurance is too expensive.
6. Compare at least three offers, one of them through a comparison site or broker.

The best order to read this section

Read the pages on required documents and on banks that lend to retirees first. Move on to your project, then to your age band if you are over 70. If your pension is small or you have a banking incident on record, the section on difficult situations takes over.

Questions retired borrowers ask

Can I borrow at 80? Yes, for modest amounts over short terms, or with strong security such as a pledged assurance-vie. A homeowner can also obtain a substantial sum with no monthly payments through a lifetime mortgage.

Is a survivor's pension taken into account? Yes. It is paid for life and treated as stable income. Include its payment statement alongside your own pension.

Will I have to fill in a health questionnaire? Usually yes for a mortgage, because the Lemoine waiver requires the loan to end before 60. For a personal loan, insurance is often optional, so the question may not arise.

What is the maximum payment on a 1,500 € pension? Using the 35 % limit recommended by the HCSF, about 525 € in total loan costs. For consumer credit, lenders focus on what remains after rent, energy and health spending.

Does a pension paid in sterling or dollars count? Yes, once it is paid regularly into a French account. Some lenders apply a cautious margin for exchange-rate movements, so build a little slack into your budget.