Is age very important when taking a bank loan?
There are two things that worry many people when wanting to take loans- why do we go for loans and which is the correct age to take the loans? As technology advances, there are a lot of online digital platforms giving out loans as well as the traditional banks. It is very good to do a great research before taking a loan.
People who are between 18 to 65 years of age can request of crediting of their cards with cash loans South Africa. Lending companies also give the loans digitally and there are no credit checks.
Which age is the best for me to take a loan?
This is the most important to look at before any lending institution gives you a loan. People with younger age tend to get more advantage as they can be given a loan for a longer time. This means that if you are in the age of 30 years, then a bank can give you a 20 year timeframe for the repayment of your loan. If you are older than 50 years, then the timeframe for repaying a loan will reduce. If you are under 18 years, you cannot take a loan from any lender.
Younger loan borrowers can get a longer extension in their tenure. Some banks may offer a maximum tenure of up to 25 years. Younger people also have an advantage of higher loan legibility. The salary is also considered when the lenders are setting the loan limit.
When a person is not of legal age, there are several things to be considered:
- Credit worthiness of co-signer
There is no credit worthiness for an underage and banks always need a better person to help them in some of the procedures. A person who has not reached the legal age of borrowing a loan will need a co-signer who has reached the legal age to help them in signing the written agreement. The credit worthiness of the co-signer is thoroughly checked before the loan is given out.
New borrowers who are inexperienced very risky and that is why some lenders set a higher loan interest. Borrowers who are underage may be more risky as they do not have any credit repayment history and they are still too young to be allowed to sign any agreements.
An underage borrower that requires a co-signature should assume the loan repayment responsibility without putting an undue overload on their co-signer. The co-signer should also consider a potential risk they are assuming by accepting to be a guarantee to the borrower.
As an underage borrower has never been involved in taking any loans and does not have any credit histories, being accompanied by a co-signer is an added advantage to them. It gives them the opportunity to be able to come up with a record having a good loan performance. The borrower will have good credit worthiness and improve it on his/her own.