What are the minimum and maximum age requirements for applicants?

Most loan providers have set eligibility criteria for business loan applicants that are related to their age. The usual minimum and maximum age requirements are as follows:

Minimum Age

Most banks and financial institutions require applicants to be at least 21 years old to apply for loans. This lower limit aims to ensure that applicants are adults with the legal capacity to undertake financial obligations and manage farming operations. In some cases, exceptions may be made for those above 18 with sufficient capability, with a co-applicant or family support.

Maximum Age

The maximum age limit eligibility often ranges between 60 and 70. Many banks or Non-banking Financial Companies (NBFCs) typically set the cap at 60 or 65 years so that the loan can be fully repaid before retirement, based on the repayment capacity over the applicant’s working life. However, some institutions provide loans up to 70 years to make financing accessible for established applicants looking to expand close to retirement.

The exact minimum and maximum age limits can vary across lending institutions catering to businesses. Applicants looking to apply for business loans must check the specific age requirements along with other eligibility norms mandated by their chosen lender.