Entering adulthood at 18 opens up new financial responsibilities and opportunities, including the possibility of securing a personal loan. For many young adults, obtaining a personal loan can be a pivotal step in managing expenses, funding education, or starting a business. However, navigating the process and understanding the eligibility requirements can be challenging. This article explores how an 18-year-old can obtain a personal loan in India, including the personal loan eligibility criteria, necessary documents, application process, and factors that affect loan eligibility.
What is a personal loan?
A personal loan is an unsecured loan provided by financial institutions to individuals for various purposes, such as consolidating debt, financing education, or covering unexpected expenses. Unlike secured loans, personal loans do not require collateral, making them accessible based on the borrower’s creditworthiness and financial stability. Personal loans typically come with fixed or variable interest rates and have a set repayment term, which requires regular monthly payments until the loan is fully repaid.
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 financial experience. However, it depends on lenders criteria for loans. Since most 18-year-olds may not have an established credit history or significant income, many lenders may require a co-signer or guarantor to secure the loan. Additionally, having a steady source of income, such as from a part-time job or internship, can improve the chances of loan approval. Demonstrating financial responsibility through timely bill payments and managing a savings account can also bolster an application.
Bajaj Finserv Personal Loan eligibility criteria
Bajaj Finserv does not offer personal loans to borrowers under 18 years old. This age requirement is due to legal and contractual obligations, ensuring borrowers have the legal capacity to enter into loan agreements. Applicants must be of legal age to qualify for a personal loan with Bajaj Finserv.
You can qualify for a Bajaj Finserv Personal Loan once you meet the five simple personal loan eligibility criteria mentioned below:
- Nationality: India
- Age: 21 years to 80 years*.
- Employed with: Public, private, or MNC.
- CIBIL score: 685 or higher.
- Monthly salary: Starting Rs. 25,001, based on the city you live in.
*You should be 80 years* or younger, at the end of the loan tenure.
What are the documents required to be eligible for a personal loan for 18-year-olds in India?
To apply for a personal loan, 18-year-olds need to provide specific documents to verify their identity, income, and residence. Commonly required documents for a personal loan include:Identity proof: Aadhar card, passport, voter ID, or driver’s license.
Address proof: Utility bills, rental agreement, or property documents.
Income proof: Salary slips, bank statements, or an affidavit from parents or guardians indicating financial support.
Passport-sized photographs: Recent photographs as per lender’s requirements.
Employment proof: A letter from the employer or evidence of part-time work/internship.
How to apply for a personal loan for 18-year-olds in India?
The application process for a personal loan typically involves the following steps:
Research lenders: Compare different lenders to find those offering personal loans to young applicants.
Check eligibility: Review the lender’s eligibility criteria to ensure you meet the requirements.
Gather documents: Prepare all necessary documents as outlined by the lender.
Fill out the application: Complete the loan application form, providing accurate information about your income, employment, and personal details.
Submit documents: Submit the required documents along with the application form.
Wait for approval: The lender will review your application and documents. If approved, you will receive the loan offer with terms and conditions.
What factors can affect personal loan eligibility?
Several factors can impact eligibility for a personal loan, including:
- Credit history: A limited or poor credit history can affect approval chances. A co-signer with good credit can help mitigate this issue.
- Income level: Insufficient income or unstable financial sources may lead to rejection.
- Existing debt: High levels of existing debt can negatively impact loan approval.
- Employment status: A stable job or consistent financial support is crucial for approval.
Conclusion
Securing a personal loan at 18 in India requires meeting specific eligibility criteria and providing the necessary documentation. While it can be challenging due to limited credit history and financial experience, having a co-signer, stable income, and a good credit profile can significantly enhance your chances of approval. Understanding the eligibility criteria, personal loan application process and factors affecting eligibility will help young adults make informed decisions and manage their finances effectively.
