Can an 18-year-old get a personal loan

Can an 18-year-old get a personal loan

Check the eligibility criteria, income requirements, and documents needed to apply for a personal loan for 18-year olds in India. Understand the key factors that may affect loan approval, repayment tenure, and borrowing limits before applying.
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Key takeaways


A personal loan for 18 year olds may be offered by some lenders, subject to their individual eligibility criteria and lending policies. Before applying, it is important to understand the eligibility requirements, documentation, repayment obligations, and the lender's terms and conditions.


  • Loan eligibility depends on factors such as age, income, repayment capacity, credit profile, and the lender's criteria.
  • A limited credit history or insufficient income may affect approval or the sanctioned loan amount.
  • Keeping the required documents ready can help make the application process smoother.
  • Bajaj Finance Personal Loan is available only to applicants aged 21 years to 80 years, subject to the applicable eligibility criteria.

Understanding the eligibility requirements and comparing available loan options can help borrowers make informed financial decisions. Always review the lender's terms and conditions before applying.


*You should be 80 years or younger at the end of the loan tenure.

Can 18-year-olds get a personal loan in India?

Turning 18 marks the beginning of adulthood and greater financial responsibility. If you are wondering whether 18-year-olds can get a personal loan in India, the answer depends on the lender’s minimum age, income requirements, credit profile and other eligibility criteria.


At 18, you may have limited credit history or income, which can affect your eligibility for some personal loans. Lenders may assess your income, employment status, repayment capacity, credit history and other applicable criteria before considering your application.


Note: For Bajaj Finance Personal Loan, the minimum age to apply is 21 years and *You should be 80 years* or younger, at the end of the loan tenure.


This article explains the key factors to consider when exploring a personal loan at 18, including eligibility requirements, documents and responsible borrowing practices. Checking these requirements before applying can help you understand whether a loan is suitable for your financial situation.


What is a personal loan?

A personal loan is an unsecured loan that you can use for eligible personal expenses, such as education, travel, medical needs or other financial requirements. Lenders generally assess your income, credit profile, repayment capacity and other eligibility criteria before approving a loan. Collateral is typically not required for an unsecured personal loan.

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How can an 18-year-old get a personal loan?

Getting a personal loan at 18 can be challenging due to limited credit history and minimal financial experience, but it's not impossible with the right approach. The success largely depends on individual lender criteria and your specific financial situation.


Main challenges for 18-year-olds:

  • No credit history: Most 18-year-olds haven't had time to build a credit score
  • Limited income: May only have part-time jobs or internship income
  • Lack of financial track record: No history of managing significant financial responsibilities
  • Higher perceived risk: Lenders view young borrowers as potentially riskier
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Strategies to improve approval chances for personal loan


1. Co-signer or guarantor: Since most 18-year-olds may not have an established credit history or significant income, many lenders require a co-signer or guarantor (usually a parent or guardian) to secure the loan. This person essentially guarantees the loan payments if you can't make them.


2. Steady income source: Having a consistent source of income, such as from a part-time job, internship, freelance work, or family business involvement, can significantly improve your chances of loan approval.


3. Demonstrate financial responsibility: Show evidence of financial maturity through timely bill payments, maintaining a savings account with regular deposits, and managing any existing financial commitments responsibly.


4. Start small: Consider applying for smaller loan amounts initially to build your credit history before applying for larger loans.

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Bajaj Finance Personal Loan eligibility criteria

If you're 18 and looking for an instant loan, it's important to understand that, as per Bajaj Finance Personal Loan eligibility criteria, applicants must be at least 21 years of age. This means a loan for 18-year-old individuals is currently not offered by Bajaj Finance due to legal and regulatory requirements around loan agreements and financial responsibility.



Why the minimum age requirement:

  • Legal maturity: Additional legal protections and responsibilities
  • Financial stability: More time to establish income and financial habits
  • Risk management: Better assessment of repayment capacity

  • Regulatory compliance: Adherence to lending regulations and guidelines



Important note: While you can't apply for a Bajaj Finance Personal Loan just yet, this waiting period is actually a valuable opportunity to build your credit profile and develop strong financial discipline. Once you meet our eligibility criteria at 21 years, you'll be able to enjoy hassle-free personal loan options with competitive rates and flexible terms.


Bajaj Finance Personal Loan eligibility criteria (when you turn 21 years):



NationalityIndian
Age21 years to 80 years
Employed withPublic, private, or MNC.
CIBIL Score650 or higher.
Customer profileSelf-employed or Salaried

*You should be 80 years or younger, at the end of the loan tenure. Check your eligibility for personal loan using just mobile number and OTP – 100% online process. 

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Documents required for a personal loan

Documentation requirements for a Bajaj Finance Personal Loan are minimal. Five document categories are required at the time of application:


Document CategoryAccepted Options
KYC proofAadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register/ NREGA job card
Identity proofPAN card, Real-time image / photograph
Employment proofEmployee ID card, Letter of Allotment of Accommodation Issued by Employer
Income proofSalary slips — last 3 months, Bank account statements — last 3 months
OthersPension order, Utility bill, Phone bill, Piped gas bill, Property / Municipal tax receipt


 

Know more about the personal loan documents required during application.

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How to apply for a personal loan for 18-year-olds in India?

If you are 18 and planning to apply for a personal loan, start by checking the lender’s minimum age and other eligibility conditions. Being 18 does not automatically make you eligible, as lenders may also consider your income, employment, credit history and repayment capacity.


If you meet the requirements, you can generally follow these steps:


  1. Check loan eligibility – Visit personal loan page, enter the loan amount you need, select the repayment period, and click on "CHECK LOAN OFFER" to check your loan eligibility.
  2. Enter personal details – Provide your personal, financial, and employment details to receive a personalised loan offer.
  3. Review your loan offer – Check your offer details and adjust the loan amount or repayment tenure, if required.
  4. Complete KYC verification – Verify your identity and bank details to proceed with your application.
  5. Speak to a loan specialist – Once your application is submitted, an executive will contact you with the next steps.

If you do not meet the lender’s minimum age or income requirement, you may need to consider other funding options rather than applying for a loan you are not eligible for.

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What factors can affect personal loan eligibility?

Your eligibility for a personal loan can depend on several factors. Lenders typically assess your financial profile to determine whether you meet their lending criteria.


  • Age: You must fall within the lender’s specified age range.
  • Income: Your regular income helps determine your ability to repay the loan.
  • Employment: Employment type, work experience and income stability may be considered.
  • Credit score: A stronger credit profile may improve your chances of meeting eligibility requirements.
  • Existing obligations: Current EMIs and other debts can affect your available repayment capacity.
  • Repayment history: Timely repayment of existing credit can support your credit profile.
  • Loan amount: The amount requested should be appropriate for your income and repayment capacity.
  • Documents: Accurate and complete KYC, income and other required documents are important for verification.
  • Lender's policy: Each lender may have different eligibility criteria, interest rates and documentation requirements.

Meeting the basic criteria does not guarantee approval. The lender makes the final decision after reviewing your application and completing the required verification.

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Building your financial profile for future success

If you're 18 and planning to apply for loans in the future, now is the perfect time to start building a strong financial foundation:


Credit building strategies:

  • Get a credit card: Start with a secured credit card or student credit card
  • Pay bills on time: Establish a history of timely payments for all obligations
  • Maintain low credit utilization: Keep credit card balances below 30% of the limit

  • Monitor your credit score: Check your score regularly and understand factors affecting it



Income and employment strategies:

  • Develop skills: Invest in education and skills that increase earning potential
  • Gain work experience: Take internships, part-time jobs, or freelance work
  • Document your income: Keep records of all income sources
  • Build professional relationships: Network for better job opportunities

 

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Key offerings: 3 loan types

  • Flexi Hybrid Loan
  • Flexi Dropline Loan
  • Term Loan

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    You can pay interest-only EMIs for up to 36 months, after which, the EMI will consist of both, the principal and the interest. EMI is applicable only on the withdrawn amount.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest on the loan amount you withdraw.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Amount disbursed in one go
    The entire loan amount is disbursed at the start.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest.

  • Flexi facility charges
    No Flexi facility charges.

Personal loan interest rate and applicable charges

Type of fee

Applicable charges

Rate of interest per annum

10% to 30.5% p.a.

Processing fees

Up to 4.13% of the loan amount (inclusive of applicable taxes).

Flexi Facility Charge

Term Loan – Not applicable

Flexi Loans –Up To Rs 1,999 To Up To Rs 18,999/- (Inclusive Of Applicable Taxes)

Will be deducted upfront from loan amount.

Bounce charges

Rs. 700 to Rs. 1,200/- per bounce

“Bounce charges” shall mean charges for (i) dishonor of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonor of payment mandate or non-registration of the payment mandate or any other reason.

Part-prepayment charges

Full Pre-payment:

  • Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment

  • Flexi Term (Dropline) Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

  • Flexi Hybrid Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

Part Pre-payment

  • Up to 4.72% (Inclusive of applicable taxes) of the principal amount of Loan prepaid on the date of such part Pre-Payment.

  • Not Applicable for Flexi Term (Dropline) Loan and Flexi Hybrid Term Loan.

Penal charge

Delay in payment of instalment(s) shall attract Penal Charge at the rate of up to 36% per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount.

Stamp duty (as per respective state)

Payable as per state laws and deducted upfront from loan amount.

Annual maintenance charges

Term Loan: Not applicable

Flexi Term (Dropline) Loan:

Up to 0.295% (Inclusive of applicable taxes) of the Dropline limit (as per the repayment schedule) on the date of levy of such charges.


Flexi Hybrid Term Loan:

Up to 0.472% (Inclusive Of Applicable Taxes) Of The Dropline Limit During Initial Tenure. Up to 0.295% (Inclusive Of Applicable Taxes) Of Dropline Limit During Subsequent Tenure

Credit guarantee scheme feeUp to 1.18% p.a. (pro-rated daily till 31st March) (inclusive of all applicable taxes) of the loan amount
Credit guarantee scheme renewal feeUp to 1.18% p.a. (inclusive of all applicable taxes) on the outstanding loan amount as on April 01 of the subsequent Financial Year.
*Renewal Fee to be collected only for 3 subsequent financial years.
 
**If the Remaining Tenure is less than 12 months, the CG Fee in subsequent years shall be charged prorated.

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Frequently asked questions

Overview

Eligibility

How can I build my credit score at age of 18?

To build your credit score at 18, start by opening a secured credit card, paying bills on time, keeping credit utilisation low, and regularly checking your credit report for accuracy.

A 18-year-olds may be eligible for EMI options if they have a stable income source and meet the provider’s basic eligibility criteria.

Several loan apps may offer credit to 18-year-olds, depending on eligibility. It’s best to check app-specific terms before applying.

Some banks may offer personal loans to 18-year-olds if they meet income and credit requirements. Policies vary, so eligibility should be confirmed with the bank.

Getting a personal loan at 18 without a salary is difficult, as most lenders require proof of stable income; a co-applicant or secured loan may improve your chances.

The minimum age to apply for a personal loan is usually 21 years , subject to meeting the lender’s income, documentation, and repayment eligibility criteria.

Yes, a CIBIL score is required even at age 18, as lenders use it at every stage to assess creditworthiness and repayment capability.

An 18-year-old may apply for a loan if they meet the lender’s eligibility criteria related to income, repayment capacity, credit profile, and required documentation.

The loan amount offered to an 18-year-old depends on factors such as income, eligibility, repayment capacity, credit profile, and the lender’s internal policies.

Instant personal loans are rarely available at 18, since most lenders set a minimum age of 21; you can apply instantly once you meet the eligibility criteria.

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Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.
For customer support, call Personal Loan IVR: 7757 000 000