A general belief is that retirees cannot borrow money but that is not true. Getting a loan after retirement is a difficult task but it is not impossible. There are many ways in which retirees can borrow money for their need. Before we get to the ways to borrow money after retirement, here’s one warning. According to financial experts, retirees should always avoid borrowing from their retirement plan and should instead go for other methods. Below are the ways in which an individual can borrow money after retirement.

Mortgage Loan
A mortgage loan is the most common type of secured loan which uses the home/property that is being purchased as the collateral. This loan gives the retirees an opportunity to instantly buy money using their own property rather than asking somebody else to help them.

Home Equity Loan
Home equity loan is a secured loan in which money is borrowed against the equity in the home. The equity must be enough to retain 20% of it after withdrawing the loan amount. This loan is an again a good way of borrowing money without getting others involved in the process and complicating it.

Cash out refinance loan
Cash out finance loan is the process of taking out a new loan more than what needs to be paid but less than the home’s value. This loan helps the retirees reduce their interest rate while getting some extra cash that they can use for other needs.

Reverse mortgage
Reverse mortgage loan provides for a lump sum income or a regular income based on the current value of a property. This loan needs not be paid back until the retiree moves out of the house or dies. So, it’s a clear win-win for the retirees.

USDA Housing Repair Loan
This loan is available for the low-income group individuals including retirees. It is given out for home repairs. The maximum amount for this loan is $20,000 and has an interest of 1%, which is the lowest interest rate for any kind of loan in the country.

Car Loan
Car loans are the best way of buying a new car without depleting the savings. It doesn’t affect the savings fund. A car loan can help retirees borrow for a new car without plunging into their savings.

Debt consolidation loan
A debt consolidation loan is given out to consolidate debt. This process needs taking out a new loan to pay off an old loan. It can help retirees to wind up their debts and lower the interest rates on existing loans.

Student loan consolidation
If a retiree is struggling with a student loan, he/she can take advantage of student loan consolidation programs which are meant to reduce payments through a deferment or even forbearance.

Unsecured loans
These loans are a good way of borrowing money quickly for personal needs but only if a retiree can show a proper source of income and convince a bank to give out an unsecured loan.

Payday loans
Retirees can get a quick access to money in times of their need through payday loans. These loans are very costly in terms of interest rate but they are a good option for borrowing when the need is urgent and are extremely easy to qualify.