Personal loans come in very handy when you need instant cash. The loan application and approval process are quick and it is also dispersed within 3 days. Even though the prospect of a personal loan is exciting, there are still some basic eligibility parameters that are required to be met. One of them is your age.

Let us now see why aged people take loans and how it influences loan eligibility. 

Age And Loan Tenure

The loan duration ranges from a period of 1 year to 5 years for personal loans. A a younger applicant is considered to have more employment and earning opportunities than an older one. So, if you are in your 20s, you are more eligible to get a personal loan of a longer duration as compared to someone who is in their 50s. Loan tenure may also be extended in case your age is less. 

Also Read: CIBIL™ Score for Personal Loan 

Age and Loan Amount

The loan amount approved also depends on the age. Younger applicants are eligible for higher loan amounts compared to older applicants.    

Age and Interest Rate 

Age has an indirect impact on the interest rate offered to an applicant. When the applicant is young, he may have spent a few years in his job. Also, he might not have a credit history or it might be very short. Lenders consider longer credit history and longer years spent in a job as an indicator of higher repayment capability. So, the interest rates may be lower for an older applicant compared to a younger applicant. 

Age And Repayment Capacity 

People who are aged are generally retired and do not have a steady source of income. Lenders consider income stability as a major factor in approving personal loans. Thus, lenders are not very assured that retirees will repay the loan and are reticent about lending to them. But, Prithvi Chandrasekhar, President – Risk & Analytics, InCred says that although retirees may not be the best-suited demographic for a loan, you cannot preclude the entire segment from access to personal loans. 

Also Read: What is the minimum CIBIL™ score to get a personal loan

Why Should You Take A Personal Loan After Retirement? 

Although requirements change with age, they still continue to exist. Retirees may not be able to meet all their financial needs with their savings. In such cases, they will need extra funds and will opt for personal loans. Also, the funds may not be available at the required time even though the individual may have enough funds invested. 

What is the Solution For Retirees?

Clearly, retirees also have the need for personal loans. So, industry players should come up with various customized products to cater to the requirements of these segments of the population. Although retirees may not have the same income as they had in their prime earning years, lenders should take into consideration their various sources of income like 

  • Income from pension
  • Income from investments
  • Income from retirement plans
  • Income from investments in real estate
  • Income from post-retirement entrepreneurial activities 

A large percentage of retirees will be able to service their EMIs with ease. A retiree should also approach lenders who offer customized products for them within the niche segment instead of going to the larger banks. Finally, it is the retiree’s responsibility to ascertain whether they will be able to repay their loans on time before they apply for one.  

Also Read: What should be the CIBIL™ score for personal loan?


Thus, age has a major influence on personal loan eligibility, but there are customized products for personal loans which cater to aged people. 

FAQS Personal Loan_ How Does Age Influence Your Eligibility To Take A Loan

1)Which factors affect personal loan eligibility? 

The factors which affect personal loan eligibility are credit score, monthly income, debt-to-income ratio, age, employment status, and lender relations. 

2) What is the eligibility with regard to age for a loan? 

You should be in the age bracket of 21 to 67 years. 

3) Is age an eligibility factor for personal loans? 

Yes, age is a factor that influences your personal loan eligibility. You can get a personal loan only if you are between the age of 21 to 60 years. As you age, you also gain job stability, experience, and assets. All these impact your personal loan eligibility and personal loan application approval.  

4) What are some essential tips to enhance personal loan eligibility? 

Some tips to enhance your personal loan eligibility are: 

  • Repay your existing loans prior to applying for a new loan. 
  • Ensure you make timely payments of your credit card dues and also completely. 
  • Maintain a positive debt repayment and credit history. 
  • Ensure that your credit score is above 750.
  • Show additional income sources, such as incentives, variable pay, passive income from hobbies, etc, (if any)

 5) Can I get a personal loan at the age of 75?

Yes, you can get a personal loan at 75 if you have reliable sources of income such as income from assets, investments, retirement plans, real estate, and so on. 

 6) Can an 18 year old get a loan in India? 

Most banks and NBFCs offer personal loans to applicants in the age group of 18 to 65 years. Salaried applicants should have at least 1 year of work experience for personal loan eligibility. Self-employed individuals should have a business for at least 2 years.

7) How does the CIBILTM  score affect your personal loan eligibility? 

The CIBILTM score for easy personal loan approval must be in the range of 720 to 750. Having this score means you are creditworthy. Lenders will approve your personal loan and will also offer you a chosen nominal amount. 

8) At what age do banks stop giving loans? 

There is no official maximum age limit at which banks will stop giving loans. But, you should be over 18 years old. Each lender has their own set of criteria, and the upper and the lower age limits will differ. So, it is always good to research to find one that suits you.

9) Which banks give senior citizens credit cards?

Some popular banks are: 

  • Andhra Bank - Visa Signature Card
  • ICICI Bank - Platinum card
  • State Bank of India 
  • IDBI Bank