As per financial expert suggestion Bank loan eligibility checker will help when Banks consider many factors to give a loan. Age is one of them. Let's see how age affects our loan eligibility.
Bank loans help people who cannot fulfill their financial needs and goals with their own money. Banks and other financial institutions create different types of loan facilities according to the needs of their customers.
For example, wedding loans for wedding expenses, holiday loans for vacations, personal loans for general expenses, etc. However, banks specify certain qualifications to get them. Age is very important in that. And let's understand how age affects loan eligibility i.e loan eligibility age limit.
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Can I get a loan on low income
Suppose you are a teenager and apply for a loan. Even if your income is not enough to pay the EMIs. Banks will grant you a loan. This is possible by increasing the loan tenure. Then the monthly installment (EMI) amount will be reduced.
This means that even if you are not able to pay installments at a young age, the chances of getting a loan are high even loan for low income families. The closer you get to retirement, the less likely you are to increase your loan tenure.
Banks usually lend up to 60 times the borrower's net monthly income. That means the monthly salary should be around Rs.83,000 to get a loan of Rs.50 lakh. If the loan is taken at the age of 30 then the loan repayment period is 30 years (assuming the retirement age is 60 years).
Then the EMI of Rs.38,446 can be easily paid. The rest of the money is sufficient for other needs. If you take the loan at the same age of 40, your EMI will increase to Rs.43,391.
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Then only Rs.39,600 will remain in hand. If the loan is taken at the age of 50, the EMI increases to around Rs.62,000.
Then only Rs.21,000 will be in hand. If the borrower is close to retirement age, banks suggest steps like adding a co-borrower, increasing the loan margin, reducing the loan amount to ensure timely recovery of the loan.
Can you get a personal loan if retired - chances are limited
Can pensioners get a bank loan: Banks cannot provide all types of loans to retirees. Although it is possible to avail loan against pension income, there are some limitations. Secured loans example gold loan, loan on FDs (loan on fixed deposit) can be availed.
Also getting a Personal Loan becomes difficult after the age increases. This is because banks or other financial institutions primarily consider the borrower's ability to repay. Banks believe that borrowers can repay their loans on time only if they have sufficient income, ability to pay, and employment.
Who can get an unsecured loan: Eligibility for unsecured loans decreases with increasing age. However, adding a co-borrower can increase the down payment. Or you can explore ways like gold loan, taking a loan by mortgaging any property. However, experts advise not to take a loan at a young age unless it is absolutely necessary.
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