Impact of Your Age on Personal Loan Eligibility | Kotak Mahindra Bank
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Age is an important parameter impacting your eligibility for a personal loan. It affects your personal loan interest rate, repayment tenure, and loan amount. Thus, it is important to figure out its impact and accordingly devise a well-planned approach before you hit on the personal loan apply button. Read on to understand how your age impacts your personal loan eligibility.

1. Impact on personal loan interest rates

Generally, lenders tend to provide a lower rate of interest to salaried applicants ranging anywhere between 21 and 50 years. This is majorly because of the presence of a stable income source.

In contrast, older individuals approaching retirement and those over 60 years of age might not be offered a lower rate on a personal loan. This is because their source of income is uncertain, which makes them a high credit risk individual for the lenders. A lender usually charges a higher interest rate to compensate for the high credit risk.

2.Impact on personal loan proceeds

Lenders generally approve higher loan proceeds if you are young i.e., in your 20s or 30s. This is because younger individuals have more working years left ahead of them. Hence, they can consider a higher repayment tenure to repay their loan in smaller instalments.

However, those over the age of 50 years generally do not have many working years left and are closer to retirement, making it tough for them to repay a higher EMI amount. Owing to this reason, many lenders tend to offer older individuals lower personal loan proceeds.

3. Impact on personal loan repayment tenure

In the same way that higher loan proceeds are usually approved for individuals with more income-earning years left ahead of them, a longer repayment tenure too is mostly approved for those in their 20s and 30s.

However, post retirement, there tends to be limited income sources from which a person can repay their debt. So, lenders may often not approve long repayment tenures for individuals over 50 years.

Considerations other than age

Besides your age, there are other important parameters that lenders tend to check to determine your personal loan eligibility. Failing to meet any of the parameters may either mean outright loan rejection or approval at unfavourable terms and conditions. Check out the other important parameters below:

  • You must be an Indian citizen.
  • You must have at least one year of work experience.
  • You must be employed in a private or public limited company.
  • Your minimum monthly income must be Rs 25,000 if you are a corporate salary applicant and for non-corporate salary applicants, the minimum monthly income requirement is Rs 30,000.
  • You must have a good credit score of 750 and above.


If you fall between the age group of 21 and 60 years, then you may be eligible to apply for a personal loan. However, just meeting the age criteria is not enough to get a loan approval. This is because, besides your age, the lender also considers other crucial factors like your employment history, income, credit profile, etc.

Also, before you apply for a personal loan, ensure to use an online personal loan EMI calculator to compute the personal loan EMI. Doing so may allow you to avoid any defaults due to insufficient funds in the future.

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.