In times of financial need, personal loans are often helpful. Both the application and approval processes for loans are quick with digital lenders. Lenders usually disburse loans within a few days.
While getting a personal loan may seem exciting there are certain requirements that must be fulfilled in order to receive quick loan approval. And one of the crucial eligibility criteria that every lender looks at is your age. Continue reading to find out how your age affects your ability to get a loan.
But first, we’ll find out what the age limit for a Personal Loan is.
The minimum age to get a Personal Loan is 18 years during loan application. The maximum Personal Loan age limit is 60 years during loan closure. However, the age criteria may slightly differ from lender to lender.
How Does Your Age Affect Personal Loan Eligibility?
The probability of being approved for a personal loan is adversely correlated with your age. Your chances of a smooth loan sanctioning process are better the younger you are. This isn’t always the case, though. Let’s examine three key elements of a personal loan where the age of the applicant is crucial:
Age & Loan Tenure
Repayment terms for personal loans are usually from one to five years. Compared to an older applicant, a younger applicant is thought to have higher earning prospects. Therefore, compared to an applicant in their 50s, you are more likely to be eligible for a Personal Loan with a longer term if you are in your 20s. Furthermore, if the borrower is younger, the loan term may also be extended.
Age & Loan Amount
The loan amount approved may also be based on the applicant’s age in addition to other factors like credit history, etc., similar to the repayment period.
Age & Interest rate
The interest rate that the lender offers is indirectly influenced by the applicant’s age. The interest rate for a personal loan is set by the lender based on the applicant’s credit history, income, etc. According to the lender, a younger applicant might not have a steady or sufficient income. Second, younger applicants might not have enough job experience or credit (borrowing) history. Longer credit history and years of employment are viewed by lenders as signs of strong repayment capacity. In that case, an older applicant might qualify for a lower interest rate than a younger applicant. However, if the applicant is at the other end of the working age range (in their mid or late 50s), lenders may be hesitant to lend.
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.
You are eligible to apply for a Home Credit Personal Loan if you meet the following criteria:
- Be an Indian citizen aged between 18 and 60 years.
- Have valid ID proof and current address proof.
- Be employed, self-employed, or a pensioner.
- Maintain an active bank account.
- Ensure a minimum 90-day interval between two Home Credit loan applications.
- Demonstrate a monthly household income exceeding ₹25,000. “Household” refers to an individual family unit comprising a husband, wife, and their unmarried children.
- Need to be an existing customer of Home Credit (should have availed Ujjwal EMI Card/ Consumer Durable Loans/ Personal Loan/ Flexible Personal Loan in the past).
How to Apply for a Personal Loan Online?
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.
Apply for a Personal Loan: Once you meet the eligibility criteria, you can apply for a personal loan online.
Keep your Documents Ready: 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.
Conclusion
Loan approval is not guaranteed even though applicants between the ages of 18 and 60 certainly meet the minimum and maximum age requirements for personal loans. In addition to these qualifying factors, lenders also take into account your credit score, income, employment stability, and place of employment when offering you an online personal loan. For a quick loan approval, make sure you meet all the requirements for a personal loan.
