People are not eligible for a bank loan for many reasons. Sometimes it's not just because of inability to return the money, but more because of the age of the person. Banks not giving a loan to elderly people is normal because they don't see seniors as eligible to return the money in full before they pass away. Of course, it's not certain that people won't live until they return the loan, but banks simply don't like to risk and are not giving standard loans to seniors.
However, old people can still get a loan, just not the standard one that other people get. Banks are calling this loan - reverse mortgage. How does it work? By simply placing a mortgage on the property the senior citizen owns. The bank gets an equity of the shares of the property and with it, it's certain that they will profit out of the loan. When they are sure they can't lose, they will give the senior citizen the money they ask for.
If it sounds complicated, you can be sure that it really isn't. Let's put it more simple. The person asking for a loan says they have a house for example. The bank places the mortgage, transfers the money, and no side has additional obligations anymore. The person asking for the loan shouldn't worry because they don't need to return anything ever, and the bank can be sure that even if the person dies, the house will be a guarantee they'll profit.
The good part of the deal, or better said, one of the good parts is - the person can live to deep age and the bank won't ask for the money ever. However, if the person decides to sell the house, the bank will activate the deal and will get a part of the money. For example, let's say the house is worth $300.000 and the person asking for a loan at the time of the agreement is 70. When the person reaches 90 they decide to sell. The value of the house can be the same, but the bank will only get a part of the buy-sell amount. This way the person that made the deal can buy a smaller place with the money and still return the loan, or they can use it for some other need they think it's best at the moment.
Banks not giving a loan might be common among many people, but if you're a senior citizen this shouldn't concern you anymore. This kind of deal is very popular in the world at the moment and especially in Australia. Seniors are getting this kind of loan for boosting their pension, for traveling, for covering debts, and other. In the past, this was not possible, but today banks not giving a loan is not something that seniors concern.