Can you get a loan if you are retired?

What counts as income when you're retired?

Lenders want to know you can afford the repayments. When you're retired, the income they'll usually consider includes:

• State pension
• Private or workplace pensions
• Rental income
• Investment income or savings interest
• Other benefits may also be counted as income (lender criteria varies)

So, if you're wondering whether you can get a loan if you are on state pension — the answer could be yes. Your state pension is a reliable, regular income, and many lenders will count it when assessing your application.

Do lenders treat retired borrowers differently?

Lenders can’t discriminate based on your age, but some set a maximum age limit — either at when you apply or when the loan ends. Common cut-offs are 70 or 75, though this varies between providers.

What lenders look at	Why it matters
Your income (pension, etc.)	Confirms you have regular money coming into your account
Your credit history	Shows how you've managed borrowing before
The loan term	Some lenders won't lend past a certain age
Your outgoings	Helps them work out what you can afford

If you've been turned down elsewhere, it's worth looking at specialist lenders who focus on loans for retired people, rather than assuming borrowing is off the table.

Can a pensioner get a loan?

Yes. A personal loan is a common option worth considering. You borrow a fixed amount, pay it back in monthly instalments, and the interest rate is agreed upfront.

Personal loans for over 75s do exist, but the choice narrows as you get older. If you're in this age group, a specialist lender or a credit union may be a better fit than a high street bank.

Can you use your pension as security for a loan?

Generally, no, not in the traditional sense. You can't usually offer your pension pot as collateral the way you might with a house for a homeowner loan. Borrowing against pensions can only be done on a business level rather than as a personal loan.

If you own property, a secured loan or equity release might be worth looking into, but these are bigger decisions with more risk attached. Always take independent financial advice before going down that route. Your home could be at risk if you don't keep up with repayments.

Tips for applying for a retirement loan

A few simple steps can improve your chances of being approved.

• Check your credit report first: Errors can drag your score down unfairly. You can check for free with agencies like Equifax, Experian, or TransUnion.
• Only borrow what you need: A smaller loan over a shorter term usually costs less overall.
• Compare lenders: Use a loan comparison tool to see your options without affecting your credit score.
• Watch out for high APRs: Some loans aimed at older borrowers carry higher interest rates — always read the small print.

Before you apply… are there other options?

It's worth thinking about why you need the money before you commit to a loan.

• Can you save up instead? If the expense isn't urgent, setting aside a small amount each month may cost you less in the long run.
• Budgeting Loans: If you receive certain benefits such as Pension Credit, you may qualify for a government Budgeting Loan — an interest-free amount you pay back from your benefits.
• Consider a credit union: These member-owned lenders often have more flexible criteria and lower rates.
• Help from your local council: Some councils offer hardship loans for essentials like food, energy bills and housing costs.
• Family or friends: Not always possible, but an informal arrangement may avoid interest altogether.

If none of these fit your situation, a loan may be the right call. Just make sure you've compared your options first.

Ready to explore your options?

Loans for retirees are more widely available than many people think. As long as you have a steady income — whether that's a state pension, a private pension, or something else — you have a reasonable chance of being accepted.

The key is finding the right lender for your situation. Age alone shouldn't stop you from accessing credit you can afford.