A personal loan is an unsecured loan offered by most of the banks in the UAE to any eligible individual. If you require a personal loan immediately to meet your various personal needs, it is very important to be aware of the personal loan eligibility criteria as this will ease and quicken your application process. Other than your monthly income, credit score, and your current employment status, your age also plays a vital role in deciding whether you are eligible for the personal loan or not. You will need to meet these eligibility criteria in order to apply for a personal loan from any particular personal loan lender/bank.
In this article, we will walk you through how age can affect your personal loan eligibility.
How Old Are You?
Well, age is one of the most important factors that affect your personal loan eligibility. Each bank has its own minimum and maximum age requirement for sanctioning personal loans in Dubai. Most of the lenders take this factor into consideration is to check whether you will be able to repay the loan amount or not. The younger you are, more of the chances of approving a personal loan application. As per the general guidelines:
- Salaried individuals need to be between the age of 21 & 60 years to be eligible for a personal loan in the UAE.
- And for the self-employed individuals, the minimum age of the applicant is 21 years while the maximum age depends on the lender you approach, but the maximum age could be as high as 65 years.
Why is age an important factor for availing a personal loan?
If you’re a young borrower, then there are high chances that you can avail an extension on your repayment tenure. The minimum age of the loan applicant is 21 years, and the maximum age of the loan applicant is 60-65 years in the UAE. And every bank or NBFC usually have the maximum loan tenure for a personal loan ranges between 5 to 6 years. If a loan borrower is of 60 years, then there is no chance of an extension on their loan tenure as the borrower is already in his/her sixties. In such circumstances, the only option that remains is to increase their equated monthly installments (EMIs). Increase in EMIs can be very difficult to handle, especially when you have a fixed income or when you have so many responsibilities.
If the applicant is younger, a personal loan lender highly believes that he/she has the capacity to earning more and to grow incrementally in comparison of older loan applicants. Hence, younger loan applicants can easily get an extension on his/her loan tenure.
When you apply for a personal loan during your 30s & 40s, your personal loan eligibility increases. You know, why? There are high chances of an increment in your salary or income over a period of time. This ultimately increases your chances to be eligible for a personal loan. Through this, personal loan lenders analyze your capacity to make loan repayments on time.
Personal Loan Eligibility Calculator UAE
Do you know?
Prior to applying for a personal loan, you can also check that if you are eligible to apply for a personal loan by utilizing the personal loan eligibility calculator UAE. You can find this tool on the official websites of various banks or personal loan lenders.
Using the personal loan eligibility calculator UAE will enable you to check which personal loan you’re eligible to apply for. In shorts, it eases the application process. From the personal loans for which you are eligible, you can choose any loan that meets your needs the most and can apply for the same. Make sure; you check the personal loan interest rate in UAE before applying for it from any of the lenders. It is advisable to compare different personal loan lenders on the basis of several factors such as features, processing fee, loan tenure, and of course interest rate. Doing this will definitely help you to avail the best one.
How to Increase Personal Loan Eligibility?
Improving the eligibility for a personal loan might sound difficult, but by following a few steps could help you to avail a personal loan in a hassle-free manner:
- Payment on Time: Paying all of your EMIs and credit card bills on the right time will ultimately help in improving the personal loan eligibility.
- Limiting the Loan Applications: Applying for a loan from multiple banks is bound to make the loan applicant look desperate, which ultimately lowering his/her credibility.
- Prepayment: Prepaying your existing loan amount could actually make a significant difference in the loan application. There are high chances that your loan application may get selected.
The Final Verdict
Hence, whenever you decided to opt for a personal loan to meet your various personal needs or to consolidate your debt, do not just look at the personal loan interest rate in UAE but also check if your age is in your favor or it is a hindrance to your personal loan application. This will prevent you to face from the rejection of your loan application. Because if your personal loan application gets rejected, then it can adversely impact your credit score, which can affect your financial health in the future.