How Does Age Influence Your Eligibility to Take a Personal Loan

"Explore how age impacts your eligibility for a personal loan. Understand the factors that lenders consider and how they affect your loan approval process."

Personal Loan Eligibility

4 mins read

Published: 8 May 2024

Updated: 8 May 2024

Age is just a number, but while availing a loan it's not just a number as it plays a vital role in influencing your personal loan availability. Majorly it affects the interest rate, loan amount, and tenure. Thus, it becomes very important to identify its impacts while applying for a loan. Some of the common effects of age on your loan eligibility are discussed below:

Age and Interest Rate of Personal Loan

The personal loan interest rate and age of the applicant are interrelated indirectly. Many lenders prefer to offer personal loans to salaried employees of age between 30 to 50 years at lower interest rates. The reason behind this is the stable income and the work experience of the applicant. Younger applicants have less or no credit history with less work experience, which does not meet lenders' eligibility criteria, a person with a longer credit history and who spent a longer time in the job has a high chance of repayment capability.

However, lenders often tend to offer personal loans at higher interest rates to individuals with ages beyond 50 years as compared to middle-aged applicants. The reason is that they have only a limited number of working years left with their jobs. Hence, the lenders want them to repay their loans before their retirement period.

Age and Tenure of Personal Loan

Personal loans typically have a tenure ranging from 12 months to 84 months. Lenders believe that the younger applicants have more potential for longer loan duration of the repayment as compared to senior citizens. Moreover, younger applicants can have the flexibility to extend their personal loan tenure while reducing the monthly payments of loans. Younger applicants have a continuous flow of cash that helps them to pay the EMIs on time. However, older applicants at their retirement period, have a limited amount of money from which they will have to repay the loan amount. So, lenders usually offer longer loan duration to applicants with a lower age compared to applicants who are 50 years of age or beyond.

Age and Loan Amount of Personal Loan

Young applicants often get personal loans approved quickly with higher loan amounts from lenders. Hence, they can opt for a longer duration to repay the loan in easy installments. The fact of getting the higher loan amount is longer working duration, as they have enough time to repay the higher loan amount.  However, applicants with ages beyond 50 years usually do not have longer working years left. Hence, it becomes a little difficult for them to repay the higher EMIs to pay off the loan before the retirement period. So, before taking a personal loan, you can also calculate the amount that you are eligible for using a personal loan calculator. This will help in getting instant personal loan approval from the lenders.

Eligibility Criteria to Get a Personal Loan

Personal Loans are collateral-free loans that are easily available to support you when you need financial support urgently. You can meet any financial requirement by taking an instant personal loan. 

You are eligible to apply for an instant personal loan if you meet the following eligibility criteria: 

1. Age: you must be an Indian citizen between the age group of 19 and 69 years.  

2. Source of Income: Salaried, Self-employed, or pensioner 

3. Documents: Any ID proof and Address Proof 

4. Bank account: Should have an active bank account in an authorized bank. 

How to Apply for a Personal Loan Online? 

Follow the following steps to apply for a Personal Loan online: 

1. Research: Research the various loan options which you want to opt for and do not forget to check if you are eligible or not as per that institution’s terms and conditions. 

2. Apply for a Personal Loan Online: Once you meet the eligibility criteria of the desired loan, you can now apply for a personal loan online.  

3. Keep Your Documents Ready: The next step after applying is to upload the required documents online for verification. i.e., Income certificate, Aadhaar Card, PAN Card, Employment proof, KYC documents, etc. 

4. Verification: After your documents are verified and you are also eligible to get an instant personal loan, you must sign the agreement after reading all terms and conditions carefully. 

5. Loan Disbursement: Once verification is done you have signed the agreement and the personal loan is approved, then the amount will be disbursed within a few days in your bank account.

How to Overcome Age-Related Personal Loan Eligibility Challenges

We have already seen the age factor which affects personal loan availability. But this can be overcome by enhancing the chance of getting an instant personal loan. Below are some strategies to overcome age-related personal loan eligibility challenges:

  • Strong Credit History
  • Income and Employment Stability
  • Manage your Debt with full responsibility
  • Shorter Loan Tenures
  • Proper Financial Planning


After knowing all about how age impacts your personal loan eligibility criteria, it is also essential to calculate it before applying for a personal loan online. This will ensure that the lenders will approve your application for a personal loan online. Moreover, you also need to check the information and documents that you are providing during the loan application process. Otherwise, if you are not aware of these factors before applying for a personal loan online, it can lead to the rejection of the personal loan application and as a result lower the CIBIL score.

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