Financial emergencies make excellent use of personal loans. The loan application and approval process is quick with new-age lenders. Lenders typically only disburse the money after a few days. Even though getting a personal loan seems exciting, there are several requirements you must follow in order to be quickly approved for a loan. And all lenders will look at your age as one of the key eligibility criteria. Continue reading to learn how your age affects your ability to obtain a loan.
But first, we will understand what is the age limit for Personal Loan.
The minimum age to get Personal Loan is 22 years during loan application. The maximum Personal Loan age limit is 58 years during loan closure. However, the age criteria may slightly differ from lender to lender.
How Does Your Age Affect Personal Loan Eligibility?
Your age is inversely proportional to the likelihood of getting a Personal Loan. The younger you are, the higher the chances of smoothly sailing through the loan sanctioning process. However, this is not always the case. Let’s have a look at 3 important aspects of a Personal loan where the applicant’s age plays a vital role:
Age & Loan Tenure
For Personal Loans, the repayment tenures usually range between 1 year to 5 years. A younger applicant is considered to have more earning opportunities as compared to the older applicant. So, if you are in your 20s, you’re more eligible to opt for a Personal Loan of a longer tenure as compared to the applicant who is in their 50s. In addition to this, loan tenure might also be extended in the case of a younger borrower.
Age & Loan Amount
Just like repayment tenure, the loan amount sanction might also dependent on the applicant’s age along with other parameters like credit profile etc.
Age & Interest rate
The applicant’s age has an indirect impact on the interest rate offered by the lender. Lenders decide the Personal Loan interest rate based on the applicant’s income, credit score, etc. A younger applicant may not have a stable or sufficient income as per the lender. Secondly, a younger applicant may not have sufficient credit (borrowing) history or enough work experience. Lenders consider longer credit history and long years spent in a job as an indicator of good repayment capability. So, the interest rate may be lower for an older applicant as compared to a younger applicant in that scenario. However, if the applicant is at the other end of the working age bracket (the mid or late 50s), then lenders might be hesitant to lend to that applicant.
Eligibility Criteria to Avail a Personal Loan
Personal Loans are unsecured loans that are readily available to support you when you need funds urgently. You can fulfil any financial requirement by taking a Personal Loan.
Here’s how you can check if you are eligible to take a Personal Loan
- Age: You should be at least 24 years old and a maximum of 57 years old when applying for the loan.
- Citizenship: You must hold Indian citizenship.
- Work Experience: Minimum 1-year work experience and at least 1 month of stable employment in the current company.
- Employment: You must be employed full-time.
- Income: Your monthly take-home should be at least Rs.30,000.
- Note: The above-mentioned criteria are indicative and can vary among lenders.
How to Apply for a Personal Loan Online
Some organisations have made everything digital, so you don’t have to stand in a queue and wait for your turn. Instead, you can apply for a loan with minimal documentation and a faster process.
Here are the steps which can guide you when applying for a Personal Loan online
- Research and Check Eligibility: Research the loan options which you want to opt for and check if you are eligible as per that institution’s terms and conditions.
- Fill in the Application Form: Once you meet the eligibility criteria, you can fill out the application form.
- Be Ready with Documents: The next step is to upload the required documents for verification. i.e., Income certificate, PAN Card, Employment proof, KYC documents, etc.
- Verification and Agreement: After your documents are verified and you are eligible to take a loan, you must sign the agreement after reading all terms and conditions properly.
- Loan Disbursement: once verification is done and the loan is approved, the amount will be disbursed within a few days.
To Conclude
Most lenders usually do not offer Personal loans to individuals who are aged below 22 years. Most of them are students and they are financially dependent on their parent’s money. On the other hand, older applicants, those nearing 58 years, may not be provided with a loan because they may be nearing their retirement age. Hence, the assurance of monthly cash inflows is minimal.
While the applicants between the age group of 22 and 58 years certainly meet the criteria of maximum and minimum age for Personal Loan, this does not guarantee loan approval. Lenders also consider some other eligibility parameters such as your credit score, income, job stability, and employer to sanction you an online Personal Loan. So, make sure you meet all Personal Loan eligibility criteria to get fast loan approval.
