How Can 18 Year Old Get Personal Loan?

Are you 18 years old? Planning to get a personal loan? Consider applying with your bank and researching lenders online. Find out how to secure a loan for a significant or unexpected need. You can make sure you get the best rates and terms by doing some comparison research. You receive a lump sum of money from a personal loan. But, you must repay over a specified time period with interest. But like with any type of borrowing, you should do your homework. Make sure you can afford the repayments. Here is what you would need to know about Personal Loan For 18-Year Olds In India. But what is a personal loan?

What is a personal loan?

A personal loan is a financial tool. It enables you to access money for a variety of purposes. When you choose a personal loan, you are given a certain amount of money at a predetermined interest rate. You can pay it back over a predetermined period of time, just as with any other type of loan. A personal loan may, however, offer several advantages over other types of loans, including the following:

• No assets of the applicant are restricted by it. Personal loan for 18-year Olds in India does not need any form of security, unlike a home or car loan. These other types of loans lock in the item against which the loan is requested.
• A personal loan should be taken out if you require a lump sum of money for any private purpose. It may be for:
• a medical or social emergency
• lifestyle requirements like house renovations or repairs
• consolidate current debt

Eligibility Criteria for Personal Loan For 18-Year-OldsIn India

Particulars	For Self-employed	For Salaried
Credit Score	750 and above
Minimum Income (may vary across lenders)	Rs. 15 lakh p.a.	Rs. 15,000 per month
Age Limit	21 – 65 years	18 – 60 years
Minimum Work Exp./ Business Continuity	2 years of business continuity	1 year (6 months with the present company)

What are the documents required to be eligible for a personal loan for 18-year Olds in India?

Application for a personal loan typically entails checking your:

• need for money
• eligibility for funding
• and the ability to repay the loan.

The institutions check this because it gives a collateral-free loan. Therefore, applicants for Personal Loans must often be salaried individuals. They should submit documentation attesting to their personal and professional information. A few of these documents include:

• a properly completed loan application
• documents asserting the applicant’s continuous employment
• KYC records, such as documents proving an applicant’s age or nationality

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

In just 7 steps, you can apply and get the personal loan amount in your bank account.

Step 1: To determine the precise loan amount you require, evaluate your needs.

Step 2: The EMI you can afford to pay will rely on any existing loans or credit card balances that you may currently be repaying. To see how much you can afford to pay back each month, use the eligibility calculator for personal loan for 18-year-olds in India.

Step 3: Go through the eligibility requirements of the bank to find out whether your employment and income will qualify.

Step 4: Check out the bank’s personal loan interest rate. The Personal Loan EMI Calculator can be used to check your monthly spending.

Step 5: If you are a current client, you can submit an application for a personal loan for 18-year Olds in India. You can do it via your internet banking account or the bank’s mobile app. Also, you can obtain the application at the branch. Also, you can download it from the financial institution’s website.

Step 6: Along with the application form, include a few other necessary documents. For instance, these are:

• the KYC documentation
• income proof
• address evidence
• check for the processing fee.

Step 7: Based on your eligibility, the bank will review the paperwork. They will then sanction the loan, and approve the amount. You will then have to sign the Standing Instruction ECS form and the agreement. 

Step 8: Your account is then credited with the money.

What factors can affect personal loan eligibility?

Have a look at these factors that can affect the eligibility of personal loans.

Credit Score for personal loan for 18-year Olds in India

Those who apply with credit scores of 750 or higher are regarded to be more financially responsible and less likely to default. As a result, banks and NBFCs favour providing personal loans to these individuals. For candidates for personal loans with better credit scores, many lenders also charge reduced interest rates. However, some lenders also provide personal loans at higher interest rates to applicants with lower credit ratings. So, you should regularly check your credit ratings. Take the required actions to keep them as near 900 as possible.

Age

The majority of NBFCs and banks offer personal loans to borrowers between the ages of 18 and 65. So, one can easily go for a personal loan for 18-year Olds in India. In addition, several public sector banks provide seniors with personal loans based on their pension income. Check the personal loan Bank of India, State Bank of India or any other institution for the recommended age group. 

Minimum Income for personal loan for 18-year Olds in India

Higher income suggests a greater ability to make on-time loan repayments. It further suggests a lesser risk for lenders. Most lenders establish a minimum salary threshold of Rs. 15,000 or more for salaried professionals. Keep in mind that lenders prefer borrowers with a minimum salary of Rs 25,000. Lenders typically demand a gross annual salary of Rs. 2 lakh or more from self-employed people. 

Conclusion

The application for a personal loan is simple and requires a few documents to complete. When your loan is authorised, the bank immediately deposits the loan’s principal into your bank account. You can benefit from tax deductions for interest payments and repay the loan over your preferred tenure with affordable EMIs. Don’t wait anymore. Check out Piramal Finance and get an instant personal loan today.