Do you know age significantly impacts determining whether you are eligible to apply for a Personal Loan or not? Though getting a Personal Loan may look easy, it is crucial to learn the Personal Loan age limit of different financial institutions beforehand. This guide will help you uncover how age can affect Personal Loan eligibility and provide insights into the Personal Loan application process effectively.
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 crucial aspects of a Personal Loan where the applicant’s age plays a vital role:
1. 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 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 compared to the applicant who is in their 50s. Additionally, there is also an extension of loan tenure for younger borrowers.
2. Age & Loan Amount
Lenders usually approve higher loan amounts for young applicants as they have more working years in their working careers. This allows them to choose a longer tenure to pay back the loan comfortably.
3. Age & Interest rate
Lenders look at the applicant's age when deciding the interest rate. They consider factors like income and credit score. Younger applicants might find it challenging as they may not have a stable income or a long credit history, which can confirm whether they have a good repayment capability or not.
On the other hand, older applicants could get lower interest rates as lenders see longer credit history and work experience as signs of good repayment capability. However, if someone is in their mid or late 50s, lenders might hesitate to approve their loan.
Also Read: What Happens To A Personal Loan If The Borrower Dies?
Eligibility Criteria and Documents Required to Avail a Personal Loan
A Personal Loan is an unsecured loan 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 22 years old, and a maximum of 57 years old when applying for the loan.
- Citizenship: You must hold Indian citizenship.
- Work Experience: You must have a minimum of 1 year of work experience, and along with it you must be employed in your current company for at least 1 month.
- Employment: You must be employed full-time.
- Income: Your monthly take-home should be at least Rs. 30,000.
- CIBIL Score: You must have a good CIBIL score of 700 and higher.
Note: The above-mentioned criteria are indicative and can vary among lenders.
Here is a list of essential documents an applicant needs to provide to avail a Personal Loan:
- Salary slips for the last three months and bank statements as proof of income.
- Identity proof documents such as Aadhaar card, PAN card, Voter ID card, etc.
- Address proof documents like Voter ID card, Aadhaar card, driving licence, electricity bill, passport, telephone bill, etc.
Also Read: Decoding Personal Loan Cancellations
How to Apply for a Personal Loan Online?
Today, the majority of lenders offer loans digitally. This has helped the borrowers to avail loan without standing in a long queue. With Personal Loan online, you can apply for a loan with minimal documentation.
Here are the steps that can guide you when applying for a Personal Loan online
- Step 1: Click on the ‘Apply Now’ button.
- Step 2: Now fill out the application form by providing all the required details like your full name, KYC details, monthly income, etc.
- Step 3: Next, upload documents like your bank statement, PAN card, etc., and press the ‘Submit’ button.
If you meet the eligibility criteria, your Personal Loan request will be approved, and funds will be disbursed into your account.
To Conclude
Calculating your age before applying for a Personal Loan is crucial. Additionally, make sure to check the other eligibility and documentation requirements. Remember, failing to meet the Personal Loan age limit or other eligibility criteria can lead to rejection and lower your credit score.
Frequently Asked Questions
- What is the minimum age to avail a Personal Loan at Poonawalla Fincorp?
The minimum age to avail a Personal Loan from Poonawalla Fincorp is 22 years.
- How much Personal Loan can I avail from Poonawalla Fincorp?
Once you match the eligibility criteria set by Poonawalla Fincorp, you can get a higher loan amount of up to Rs. 30 Lakh.
- Can I get a Personal Loan at the age of 54?
Yes, you can secure a Personal Loan at 54. You only need to showcase your stable income and meet the lender's eligibility criteria.