This form of borrowing has several obvious advantages, which explains its popularity. Personal lenders have their own set of requirements, which include applicant’s age and other background criteria. Here is an overview of the scheme. First, consider these crucial benefits.
1.Simpler approval procedures
Generally, personal loans are easier to obtain due to the less rigorous requirements for those who apply. Moreover, approval takes incomparably less time. In fact, the funds may land in your account on the next working day, whereas banks could consider your candidacy for a week.
Conventional banks are reliable finance institutions, but when they lend money to individuals, they subject each candidacy to multi-level checks and reject clients who do not meet their strict standards. In order to qualify, you need a flawless credit history, stable income and often collateral. This is property (e.g., your home or vehicle) that the bank will confiscate if you fail to repay the debt.
Finally, applicants whose history with credit is not perfect may still be given a chance. The credit score threshold is usually lower than that for old-school loans. This depends on the lender, as some of them are more willing to make exceptions than others.
2. Different Purposes
Agreements offered by banks stipulate very strict conditions, including the purpose of borrowing. If you have taken out a loan for a vehicle, you must spend the received amount on a car. With personal loans, there is more room for maneuvering.
Generally, the amount lent may be spent according to your wishes. What really matters is your ability to repay the debt. In this regard, this type of borrowing offers versatility.
Although it is higher than what banks would charge, the interest is still reasonable. In fact, it is much lower than that of predatory payday lenders. Since applicants with a less-than-perfect credit history are dismissed by banks, personal loans are their best option. Payday loans are the worst form of credit, as their cost may reach 400.
4. Eligibility requirements
Even though these loans are characterized by certain leniency, as mentioned below, there are still requirements to meet. After all, no lender is willing to provide money to irresponsible clients who are unable to repay by default. So, how old should one be to receive a positive result?
Most commonly, the age bracket is between 21 and 65 (by the time of maturity). The institution should see that you have a stable source of income (i.e., a salary or pension), so you can make the required regular payments. However, it must be noted that the acceptable age group may vary from lender to lender. Hence, be sure to clarify the exact requirements before filling in your application.