Taking a personal loan at the age of 18 can be a big financial step for the youth. With this help, he can deal with emergency expenses as well as works like educational fees. But managing money and credit tools wisely is essential for a safe financial future. Experts believe that youths should learn things related to money like loan, credit, savings and investment as soon as possible. Along with studies at the age of 18, learning money management can be a great start.
Let us tell you that in today’s digital age, getting personal loans has become easier than ever. Youth of 18 years can also borrow if needed. Moneycontrol has partnered with 8 lenders, which offers a loan of up to Rs 50 lakh with 100% paperless process. Interest rates here start at 10.5% annually.
However, it is important for the youth to manage these easily available loan options properly. Therefore, it is important to understand the nuances of personal loan so that there is no financial stress in the future.
Document required for personal loan
Loan Application Form: It should be filled with the right personal and professional information. This information on digital platforms can be given directly through the mobile app or website.
KYC Document: Aadhar card, passport and address proof like electricity bill, rent agreement.
Income Certificate: Latest Salary Slip, Bank Statement or Application Letter.
Employment Verification: Certificate of jobs ranging from at least 6 months to 1 year.
Personal loan application process for 18 year old youth
Deciding loan amount: Decide the right amount according to your need.
Set EMI: Estimate monthly payment using EMI calculator.
Review Eligibility: Check whether you meet the conditions of the lenders including income and employment status.
Compare interest rates: Many loan rates can vary, so comparison is necessary.
Submit the application: Fill the online form or apply to the bank branch.
Submit documents: Submit essential documents like KYC and Income Certificate.
Personal loan Eligibility test
Credit Score: The score of 750 or more is considered the best. A high interest rate can be offered to a low score.
Age: Lenders mostly give loans to those aged 18 to 65 years, but for some can be at least 21 years. Therefore, 18-year-old applicants may require co-applicants.
Income: Applicant’s monthly income should be at least Rs 15,000. Whereas self-prompt applicants usually require an annual income of at least Rs 2 lakh.
Personal loan Focusable things before taking
Loan Amount and Uses: Do not take more loans. Representation can be difficult due to excessive borrowings.
Loan Tenure: It usually range from 12 to 60 months. EMI may be reduced in long tenure, but interest may have to be paid more.
Interest Rate and Processing Fee: Young applicants may have to face higher interest rates. However, better conditions can be obtained from comparison and interaction.
Challenges for 18 year old youth
Need of guarantor: In case of not having a credit history, guarantor may be necessary.
High interest rate: Due to risk, youth can get loans at high rates.
Approval on rejection or low amount: Due to low income or credit score, the loan may be rejected or the amount may be reduced.
conclusion
In India, 18 -year -old youth can also fully fulfill their financial goals by taking personal loans wisely. But it is important that they understand eligibility, documents and conditions well and make decisions with thoughtfully.
Through the Moneycontrol app, you can get an instant digital personal loan of up to Rs 50 lakh without paperwork. Just fill your information, complete the KYC process and set the EMI repayment.
Summary
Personal loans can prove to be a game-changer for 18-year-old youth, especially when they need funds. Know the application process, eligibility criterion and wisely taking loan tips so that you can avoid normal mistakes.
Top banks/ NBFCs
50 lakhs
Get instant loan up to
Disclaimer
This fraction/article is written by an external partner and does not reflect the work of the editorial team of Moneycontrol. This may include references to products and services offered by Moneycontrol.