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20 Lakh Personal Loan

You can receive personal loans from banks and NBFCs for amounts ranging from Rs 10,000 to Rs 40 lakh. Your monthly income, existing loan repayment obligations, and your EMI/NMI ratio—the proportion of your net monthly income that is used to pay off both your existing EMIs and the EMI of the new loan—will all play a significant role in determining whether you will be approved for a personal loan of Rs. 20 lakh. Remember that lenders frequently prefer to approve personal loans to applicants with EMI/NMI ratios of up to 50–55%. Additional factors that may have an impact on the loan approval process include your credit score, employment history, and employer profile.

Key Features of a 20 lakh Personal Loan

A 20 lakh personal loan, also known as a high-value personal loan, typically comes with the following key features -

1. Loan amount - The loan amount for a 20 lakh personal loan is Rs. 20,00,000.

2. Tenure - The loan tenure can range from 6 months to 84 months or more, depending on the lender's policies and the borrower's repayment capacity.

3. Interest rate - The interest rate for a 20 lakh personal loan can vary depending on the borrower's creditworthiness, income, employment status, and other factors.

4. Processing fee - The processing fee for a 20 lakh personal loan can range from 1% to 3% of the loan amount, depending on the lender's policies.

5. Collateral - A 20 lakh personal loan is typically an unsecured loan, which means there is no requirement for collateral. However, some lenders may require collateral depending on the borrower's credit profile.

6. Eligibility criteria - The eligibility criteria for a 20 lakh personal loan can vary from lender to lender. However, the basic criteria include age, income, credit score, employment status, and other factors.

7. Repayment options - The repayment options for a 20 lakh personal loan typically include EMI (Equated Monthly Installments) and prepayment options.

Leading Lenders for Rs 20 lakh Personal Loan

Below are the interest rates some lenders charge for Rs. 20 lakh personal loans.

Lenders

Interest Rate

HDFC Personal loan

10.50% onwards

ICICI Personal loan

10.75% onwards

SBI Personal loan

11% onwards

Kotak Mahindra Bank Personal loan

10.99% onwards

Axis Personal loan

10.49% onwards

IDFC Personal loan

10.49% onwards

Tata Capital Personal loan

10.99% onwards

Fullerton India Personal loan

11.99% onwards

Poonawalla Fincorp

9.99% onwards

Things to Note While Applying for Rs 20 Lakh Loan

Before applying for a personal loan of Rs 20 lakh, here are some points to consider -

1. Check your credit score - Your credit score will play a significant role in determining your loan eligibility and interest rates. Make sure to check your credit score and take steps to improve it if necessary.

2. Compare lenders - Research and compare different lenders' interest rates, fees, and repayment terms to find the best deal.

3. Evaluate your repayment capacity - Make sure to evaluate your repayment capacity by calculating your monthly income, expenses, and existing debts. This will help you determine whether you can afford to repay the loan on time.

4. Check eligibility criteria - Each lender will have different eligibility criteria, such as minimum income requirements, age limit, and employment status. Make sure to check if you meet the eligibility criteria before applying.

5. Consider the loan tenure - The loan tenure will determine the monthly installments you will have to pay. A longer tenure may result in lower monthly installments, but you will end up paying more interest over time.

6. Read the fine print - Before signing any loan agreement, make sure to read the terms and conditions carefully. Pay attention to any hidden fees or penalties that may apply.

7. Avoid multiple applications - Multiple loan applications can negatively impact your credit score. Therefore, it's important to avoid submitting multiple applications simultaneously.

Documents Needed for Rs 20 Lakh Personal Loan

1. For Salaried

a. ID proof - Aadhar card, driving license, PAN card

b. Signature proof

c. Bank statements for the last 6 months

d. Address proof – Passport/Aadhaar Card

e. Last 3 months’ salary slips

f. Form 16/ITR

2. For Self-employed

a. ITR for the past 2 years along with P&L account, balance sheet, and income computation for the last 2 years

b. Business Proof

c. Form 26 AS, Income Tax Challan or TDS certificate (Form 16A)

FAQs Of 20 Lakh Personal Loan

1. What is a 20 lakh personal loan?

A 20 lakh personal loan is an unsecured loan that provides a lump sum of Rs. 20,00,000 or more to borrowers. It can be used for various personal expenses, such as home renovations, wedding expenses, medical bills, and more.

2. What is the loan tenure for a 20 lakh personal loan?

The loan tenure for a 20 lakh personal loan can range from 6 months to 84 months or more, depending on the lender's policies and the borrower's repayment capacity.

3. Is collateral required for a 20 lakh personal loan?

A 20 lakh personal loan is typically an unsecured loan, which means there is no requirement for collateral. However, some lenders may require collateral depending on the borrower's credit profile.

4. How much processing fee do I need to pay for a 20 lakh personal loan?

The processing fee for a 20 lakh personal loan can range from 1% to 3% of the loan amount, depending on the lender's policies.

5. Can I prepay my 20 lakh personal loan?

Yes, most lenders allow prepayment of a 20 lakh personal loan. However, some lenders may charge a prepayment penalty. It's important to check the prepayment policies before availing of the loan.

6. What is the documentation required for a 20 lakh personal loan?

The documentation required for a 20 lakh personal loan typically includes identity proof, address proof, income proof, bank statements, and other relevant documents. It's recommended to check with the lender for the exact list of required documents.

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CreditMantri Finserv Private Limited

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U72100TN2012PTC085154

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CA0665

Valid Till

01-Aug-2025

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