Personal Loan come in very handy when there is a financial emergency. With new-age lenders, the loan application, as well as the approval process, is fast. Usually, lenders disburse the loan within a few days only. Even though the prospect of a Personal Loan is exciting, there are some eligibility criteria that you need to meet to get fast loan approval. And your age is one of the important eligibility parameter that is checked by all lenders. Read on to know how your age influences your loan eligibility.
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.
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:
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.
Just like repayment tenure, the loan amount sanction might also dependent on the applicant’s age along with other parameters like credit profile etc.
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.
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.
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