Can Age Really Affect My Personal Loan Application?

How does age influence your eligibility to take a personal loan? - The  Economic Times

Although refraining from taking out loans is the wisest policy to protect your financial stability, a person may need to do so at any time due to unanticipated circumstances. In case of a financial emergency, some of us think about our savings but experts advise if the potential borrower has a good enough check my CIBIL score, they should maintain liquidity and choose a personal loan. In order to secure financing quickly and efficiently, many people turn to personal loans. If you have check my credit score and have fulfilled other loan eligibility, the loan amount will be disbursed to you in 2–7 days. But, do you know that aside from check my credit score, banks take into account other eligibility criteria also? One such eligibility criteria we will be talking about today is age. 

Is there a right time to choose a personal loan? 

There is as such no particular time to opt for a personal loan. People use personal loans for a variety of purposes, depending on their needs. Additionally, a personal loan may be required at any time. For instance, a father might take out a personal loan to cover the costs of his child’s higher education, an elderly mother might choose to use it to cover the costs of her child’s wedding, a married couple might use it to renovate their recently purchased home, a daughter might apply for it to cover her father’s medical expenses, etc. There is no ideal moment to apply for a personal loan, but the first factor that lenders look at to determine whether to approve your personal loan application after check my CIBIL score is your age. The eligibility parameters differ for different ages.

Does your age affect your ability to obtain a personal loan?

Age is a significant factor in personal loan eligibility after check my CIBIL score. Most lenders only permit you to apply for a personal loan if your age is between 21 and 60. People under the age of 21 are not eligible for personal loans because they are typically college students who depend on their parents for financial support. On the other hand, people over 60 may not be eligible for personal loans because, for the majority, this is the retirement age and there is little guarantee that they will be able to repay the loan amount within the stipulated time period. 

While individuals between the ages of 21 and 60 meet the age requirements for most of the financial institutions in India, this doesn’t mean their loan application will be approved. Even if it does, the interest rate will not be the same. This is because with age come other factors that lenders look at, such as check my credit score, work experience, employment stability, and income. Your eligibility for a personal loan may be affected by all of these factors that we will be discussing below: 

Income: Majorly, a manager in his 40s makes much more than an individual aged 24. It goes without saying that the newcomer can climb the ladder and, as they become older, end up in the same position as their manager. However, the latter currently makes less money than the former. Keep in mind that because personal loans are unsecured in nature, lenders may only approve you if you have a high repayment capability (often assessed by looking at your income) and a solid credit history by doing a check my credit score. As a result, someone in his 40s has a high chance of getting their loan application approved than their younger ones. 

Credit history: It’s very unlikely that someone who has just started their career would have a credit profile. A lack of credit history or a poor credit score deters lenders from approving personal loan applications. This is due to the fact that a bad or low credit profile frequently indicates that the potential borrower is susceptible to defaulting in the future. By choosing a credit card and making sure to pay off your balance in whole and on time, you can establish a credit profile. Your credit profile will be created over time as you pay off all outstanding debts, which could increase your chances of getting a personal loan at a reasonable interest rate. 

There are many benefits to having a solid credit history, such as it may potentially qualify you for an immediate personal loan. Instant personal loans are preapproved in nature and disbursed the same day as the application is submitted, in contrast to traditional personal loans, which are disbursed in two to seven days.

Employment history: Your employment history is the third crucial factor in determining your eligibility for a personal loan. They look at how frequently you’ve changed jobs in the past and for how long you have been in a particular job. Lenders may not want to lend to you if you have changed your job quite frequently in a short period of time. This is because the likelihood of defaulting in the future is thought to be higher as they view frequent job changes as an indication of financial instability. If you have been employed steadily by the same employer for a long time, they might only lend to you.

How does your eligibility depend on your age?

The age restriction for personal loans and loan eligibility are thought to be inversely related. The younger you are, the more likely it is that the loan-sanctioning process will go smoothly but might not always be the case, though. Let’s examine three aspects of personal loans where an applicant’s age is crucial.

Age and Loan Tenure: The loan term for personal loans typically ranges from a minimum of 1 year to a maximum of 5 years. In comparison to an older applicant, a younger applicant is thought to have more career and income options. As a result, if you are in your 20s rather than your 50s, you are more likely to qualify for a personal loan with a longer term. The loan’s term may also be extended in the case of a younger applicant which is not the case for older applicants. 

Loan Amount and Age: Similar to tenure, the age element also influences the loan amount that is accepted. In comparison to an older applicant, a younger applicant with a similar profile may authorized for a larger loan amount.

Interest Rate and Age: The interest rate that the lender offers is somewhat influenced by the applicant’s age. A few important elements, such as credit score, income, etc., determine the interest rate that is offered. A very young applicant may not have a decent income since they may be new to their employment or may not have a good credit score due to a lack of credit history, both of which could have a negative effect on the interest rate that is offered. Those with 5 to 10 years of job experience, on the other hand, are known to have a solid credit history, which might work to their advantage when negotiating interest rates.


Age should undoubtedly not be a barrier to embracing life to the fullest. Even the investors and financial counsellors learned through time that the fundamental idea that as you age, you should minimise risk was false. Age is just one of many variables that influence a person’s willingness to take risks. In general, lenders tend to steer clear of lending to people who are nearing their retirement age even if they have good check my credit score. It is because lenders favour borrowers who have a consistent source of income as they will be able to repay the loan when compared with someone who is about to retire or already has retired. 

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