There are times in life when additional financial support becomes necessary. You may need to borrow from your loved ones during such times. However, this strains your relationships. So, if you want to avoid risking your relationships, a Personal Loan helps. Let us understand this Loan better, explore its advantages, and determine how your age influences Personal Loan eligibility.

Overview of a Personal Loan

Today, you can choose a Personal Loan apply online. Such a Loan is unsecured and lets you meet your immediate or short-term capital needs. Based on your eligibility, your Loan application gets verified. Once your application is approved, the money is disbursed to your account. You are free to use the Loan for any financial need.  

A Personal Loan is also convenient since you can repay it over a period using pick-friendly instalments.

Advantages of Personal Loans

Personal Loans offer multiple advantages:

• Today, you can conveniently apply for a Personal Loan online. The application process is usually quick. The documentation is also minimal.
• The most significant advantage of this Loan is that you can use its funds for any purpose. Hence, use the money for a wedding, business investment, a holiday, a gadget, a medical emergency, or cover expenses related to your child’s higher education.
• Since a Personal Loan is unsecured, you need not mortgage collateral to avail yourself of this Loan.
• When you opt for a Personal Loan, you can pick the Loan tenure based on your repayment capacity.

Effect of age on Personal Loan eligibility

A Personal Loan applicant should meet the age requirements of their chosen bank to qualify for the Loan. Besides the basic requirement of being over the legal age to get into financial contracts, your age also affects Personal Loan eligibility. For example, if you are a young individual who has only been working for a few months, you may be considered a high-risk applicant.

This is because there is no actual guarantee of your repayment capacity or capability. On the other hand, if you are an applicant closer to the retirement age, you need to have a smaller earning window. This influences your eligibility for the Loan as well. The eligibility requirements for a Personal Loan differ across banks.

Therefore, it is good to contact your chosen bank to get a complete idea of the eligibility criteria for the Personal Loan you want to apply for. Besides age, other factors also affect Personal Loan eligibility:

• Your income
• Your housing situation
• Your geographic location
• Existing credit
• Debt-to-income ratio
• Your credit score
• Nature of employment.

Conclusion

Now that you know about a Personal Loan and how age affects your eligibility, you can consider the various eligibility requirements when applying for one.