How Age Is Very Important Factor for Taking Personal Loan in the UAE
A personal loan (PL) is not less than a blessing for those who need financial support in times of cash crunch. From medical emergency and home renovation to wedding and debt consolidation, consumer finance can be availed to meet various monetary needs. Well, the process of availing a personal loan in UAE is instantaneous, and the finance gets disbursed into the bank account within a short period of time only.
But please note that banks or lenders offer PL to only those individual who meets the eligibility criteria determined by the particular bank, age being one of them. That said, age criteria are amongst the most important eligibility criteria for availing PL in the UAE.
What Is The Minimum And Maximum Age Criteria For Availing PL in the UAE?
As said earlier, age is one of the most important factors of PL eligibility among all. Based on your age, banks or lenders check your repayment ability. The younger you’re, higher are the chances of approving your PL application.
Well, every bank has its own minimum & maximum age eligibility requirements for offering a personal loan in UAE. In order to be eligible for PL, the applicant must be 21 years of age while the maximum age of the applicant must be 60 years. These age criteria are generally applicable to consumer finance in the UAE for expats. However, the maximum age criteria for UAE nationals could be as high as 65 years.
Why is Age an Important Eligibility Criteria for Availing PL?
The repayment tenure of PL ranges from twelve months to sixty months. While an applicant who is at his/her young age gets the flexibility to select the repayment tenor, but things are not same with the older applicant since the banks or lenders becomes attentive for the applicants who are in their older age. In such situations, the only feasible option that is left to increase their EMIs (equated monthly installments). However, an increase in EMIs can be tough to handle especially when you have a fixed source of income or when you have plenty of responsibilities.
A young applicant gets more time to make repayment of their loan whereas an older applicant will get less time to make the finance repayment. The reason behind this is very simple and straightforward. A borrower in his 20s or 30s will have enough time to earn more as compared to the one who is in his/her 50s. In addition to this, lenders tend to believe that the younger applicant’s earning will continue to increase in the coming years thus lenders ready to give a younger applicant an extension in their finance tenure. While the old applicant may not get an extension in their finance repayment tenure since he/she close to his/her retirement age as well as the chances of increasing their income are very less (in case of salaried individuals).
Also, a younger applicant’s loan amount is generally not high. That said, they might want to borrow PL to fund an international trip, make a down payment of his vehicle, take it for a medical emergency or to buy something expensive. However, the priority of older applicant changes, they take it for the wedding of their children, starting a new business, or making down payment of their home loan, and so forth. Henceforth, lenders become extra careful with the older applicant as risks are high with the older applicants.
If you need more clarity regarding the PL, you can also use a personal loan calculator. It is basically an online tool which takes general details from you and generates information about the EMI and finance tenor of the intended finance amount. You can find this tool on the official websites of the various banks or non-banking financing institutions.
Age is one of the most important factors for taking consumer finance in the UAE since lenders consider this factor to check your finance repayment ability. Henceforth, when you finally decide to opt for PL, do not just focus on the personal loan interest rate but also check that your age is in your favor or it is a hindrance to your loan application.