A personal loan can save you if you need a lot of money quickly for an emergency, to make a big buy, or to combine several bills into one. A lot of people in India want to know if they can get a personal loan of ₹5 lakh. The answer is yes, it is possible as long as you meet the lender’s requirements and have all the necessary paperwork.
Find out everything you need to know about getting a 1 lakh personal loan here.
All You Need to Know About Personal Loans
The only thing you don’t have to do to get a personal loan is put up security like gold or land. Your lender will look at your credit score, income, and payment history to decide if they want to give you money since the loan isn’t secured.
How much you can borrow for an Indian personal loan depends on your qualifications. It can be anywhere from fifty thousand to two lakhs. People who are paid or self-employed often take out ₹5 lakh loans, which are medium to big loans.
Important Criteria for Getting a ₹5 Lakh Loan
There are things the investor wants you to do in order to get a five lakh personal loan. There are some small differences in what each bank or NBFC needs, but these are the main ones:
- Level of Income: As most lenders require, the monthly income should be at least ₹25,000 to ₹30,000.
- If you work for yourself, your business income needs to be steady.
- Your chances of getting a loan and the interest rates you get will both be better if your credit score is at least seven hundred.
- Age: Between twenty-one and sixty years old most of the time.
- For salaried applicants, you need at least one to two years of work experience. For self-employed applicants, you need at least two to three years of business experience.
Documents Required
It is easy to do the paperwork.
- ID proof (Aadhaar card, PAN card, visa, etc.) is what most lenders will want to see.
- Proof of address: a rent or energy bill, a voter ID, or something else
- Proof of income
- Picture (passport-sized)
- Some lenders may also let you apply online and send scanned copies of these records instead of paper copies.
Interest rates and the length of time
In India, the interest rates on personal loans depend on your credit score and can be anywhere from 10% to 24% per year. The terms of a ₹5 lakh loan can be anywhere from 12 to 60 months. With a long term, you pay less in monthly payments but more in interest over time. In the short term, the opposite is true.
There is a way to get a five lakh personal loan in India through the 5 lakh loan app.
It depends on how much money you make, your credit score, your ability to pay back loans, and your general financial situation. This kind of loan is easy to get if you have good paperwork, a history of on-time payments, and a good credit score.
A ₹5 lakh personal loan can help you reach your financial goals without much trouble if you plan your money well and choose a reputable company.
