Personal Loans are a blessing when there is a serious need for some quick cash. The process is rather instantaneous, and the loan is also disbursed within three days. As exciting as the prospect of a personal loan is, there are still some basic eligibility parameters that need to be met with. The most important parameter is your CIBIL score, then your monthly income and finally your age. Age and income define the EMI amount and tenure; therefore, they are important as well.
Why is age such an important factor for your loan?
- The repayment tenure of personal loan ranges from 12 months to 60 months. While a younger applicant gets the flexibility to choose the repayment tenure, it is not really the same for an older applicant as the lender becomes more vigilant an older age bracket.
- A young applicant gets more years to pay off his loan where as an older applicant will get lesser time to repay the loan. The logic behind this is simple, an applicant in his twenties will have more earning years left as compared to an applicant in his/her fifties.
- A younger applicant’s earning will keep increasing so the lender will happily give him/her an extension. But an applicant who is in his fifties may not get an extension as he is close to his retirement age and also the chances of his income increasing significantly are less (in case of salaried individuals).
- A younger applicant’s personal loan amount is generally not so high. A younger person may borrow money to fund a trip, make a vehicle down payment, use it for a medical emergency or to buy something expensive. But an older applicant’s priority changes, it is either for business, wedding of a child or making down payment for a home etc. That’s why the lenders are more careful with older applicants as both the money and stakes are high with this category of borrowers.
- CIBIL is important to be eligible for the loan but age is important to decide the repayment structure of the loan. That’s why lenders look at the age of the applicant.
If you need more clarity regarding the loan, you can also use Finserv Market’s EMI calculator. It is an online tool which takes basic details from you and generates information about the EMI and loan tenure of the intended loan amount.
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Finserv Markets, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!