Car loans have become an easy way for people to purchase their dream car without paying the entire amount upfront. Most banks and financial institutions offer car loans, but there are certain age restrictions that must be considered when applying for a car loan.
Impact of age on car loan approval
The age limit for car loan approval is an essential factor that lenders consider while evaluating loan applications. Age plays an important role in determining an individual's loan repayment capacity and creditworthiness. Younger borrowers with a stable income and good credit score are preferred by lenders as they have longer repayment periods and a better ability to repay the loan. On the other hand, older borrowers may have a fixed income source, retirement plans, and health issues. These may pose a higher risk of non-repayment of the loan, and therefore, lenders may hesitate to approve the loan. Hence, it is important to consider your age while applying for a car loan. It is crucial to choose a suitable financing option that suits your financial capacity and ensure timely repayment to avoid any legal issues.
Age limit criteria
The age limit criteria might differ from lenders to lenders. Bajaj Finance offers two types of car loans that come with simple eligibility criteria and minimal documents. These loan options include new car finance and used car loans. While new car finance provides you with funds to purchase a brand-new car, used car loans provide financing for pre-owned vehicles.
Type of car loan |
Age limit |
New car finance |
18 years to 80 years* |
Used car loan |
18 to 80 years* |
*Higher age limit is applicable at the time of loan maturity.
Apart from the above-mentioned age limit, there are other parameters that you need to fulfil to qualify for our car loans. You also need to submit a list of documents to receive loan approval.
While age is an essential factor to consider when applying for a car loan, other factors like income, credit score, employment status, and the value of the car also play an essential role. The lender needs to ensure that the borrower has a reliable source of income to repay the loan. A higher credit score indicates better creditworthiness, making it easier to get approved for a car loan. The value of the car is also a significant factor as it acts as collateral to secure the loan.
