Personal Loan Of 1 Lakh

Key Features of Rs.1 Lakh Personal Loans

A Personal Loan is quick and hassle-free, giving you the much needed funds in times of emergencies. Even for any unplanned expenses, a personal loan comes in handy. What are some of the best features of an instant personal loan that make it desirable to consumers?

• Quick Approval: Naturally, instant personal loans are approved in lots or hours. They even have a minimum number of documents required to be submitted. Some of these even have completely digital applications for convenience.
• No Collateral Required: Most of the personal loans are unsecured, meaning no asset or collateral is pledged as security. This makes it more preferable on part of the borrower who does not have any valuable assets to pledge.
• Flexible loan amounts: These loans would generally start from as minimum an amount as ₹10,000 and offers up to ₹40 lakhs as the loan amounts. This allows the borrower to have the required amount of loan for their expense.
• No restriction on usage: Money borrowed via a personal loan can be used for several purposes, and there is no restriction on how it is spent.
• Quick Processing: The loan is processed within hours and the funds are transferred to bank account in 24-48 hours. Some of such loans do even offer disbursal as soon as 15mins.
• Fixed Interest Rates and Repayment Terms: Generally, personal loans come with fixed interest rates, making monthly payments predictable for the borrower and enabling them to budget for monthly cash flow more easily.
• Flexible Repayment periods: Lenders permit periods of between 6 months to 5 years to pay back the amount. This would, in turn, enable one to clear the debt faster than long-term loans.
• Improve Credit Score: On-time performance in repaying a personal loan will earn you a high value in creating a credit history; hence, good credit score will be available for easier loan approval.
• Managing Loan Account: Today, the processing of most loans is done online, and so a borrower has a clear view of his or her loan account, outstanding balance, and payments through the click of a button.
• No Prepayment Penalties: A majority of personal loans bear no pre-payment charges in case you desire to pay the total amount after a minimum of 12 paid EMIs. This will lead to faster loan account closure and savings that could well have amounted to a pretty penny.

What is the EMI for 1 lakh personal loan?

Rs 1 Lakh Personal Loan EMI for up to 5 Years

Here are the approximate EMI figures for a Rs. 1 Lakh personal loan with an annual interest rate of 12% across different tenures:

Essential Documents Required for a Rs 1 Lakh Loan

For Salaried Individuals

1. Identity Proof

• Aadhar Card
• Passport
• Voter ID
• Driver's License

2. Address Proof

• Utility Bill (Electricity Bill /Water/Gas)
• Rent Agreement
• Passport
• Ration Card
• Aadhaar Card

3. Income Proof

• Recent Salary Slips (Last 3-6 months)
• Bank Statements (Last 6 months)
• Form 16 or Income Tax Returns (ITR) for the last 2 years

4. Employment Proof

• Employment ID Card
• Appointment Letter or Offer Letter

5. Photographs:

• Recent Passport-sized Photographs (usually 2)

For Self-Employed Individuals:

1. Identity Proof

• Aadhar Card
• Passport
• Voter ID
• Driver's License

2. Address Proof

• Utility Bill (Electricity Bill, Water, Gas)
• Rent Agreement
• Passport
• Ration Card
• Aadhar Card

3. Income Proof

• Income Tax Returns (last 2-3 years)
• Bank Statements (last 6-12 months)
• Profit and Loss Account
• Balance Sheet

4. Business Proof

• Business Registration Certificate
• GST Registration Certificate
• Trade License
• Partnership Deed (if applicable)

5. Photographs

• Recent Passport-sized Photographs (usually 2)

How to Apply for Instant Rs.1 Lakh Personal Loans?

1. Research and Compare: Do thorough research on various banks and NBFCs offering instant personal loans. Compare their interest rates, fees, and other terms and conditions to get the best option for yourself.

2. Eligibility check: Look into the eligibility criteria the selected lender has. In general, lenders require that the borrowing individuals are citizens or residents of India, between 21 and 60 years of age, have a stable source of income, and have good credit scores.

3. Application Submission: After selecting a lender and confirming about your eligibility, apply for your personal loan from the lender's office either online or visiting the branch office. Be sure to fill in all the documents and provide the information correctly.

4. Verification-cum-approval: The lender will verify your application and documents submitted and shall ask for further information, if need be. If everything is fine, he will sanction your loan application and disburse the funds to your account.

5. Repayment: You would need to repay the borrowed amount through monthly installments, called EMIs, within a determined tenure. Be sure to make payments on time to avoid charges and penalties for late payment.

Key Factors to Keep in Mind while Applying for Instant Rs.1 Lakh Loans

1. Credit Score: This is unmistakably one of the prime reasons that will decide about one's credibility with regards to personal loans. A higher credit score will prove that there is less chance of failing to return the loan amount at the right time. Experts suggest a credit score of 700 and above to get the best personal loan terms and conditions.

2. Income and Employment: The borrower's income and employment status are other vital factors also taken into consideration. Steady income and employment history may show that there exists an ability to repay the credit.

3. Loan Amount: The loan amount should be right-sized for the customer. Borrowing beyond your repayment capacity can put you into a more difficult situation financially, and applying for too little loan amount may not serve your purpose.

4. Existing Liabilities: Lenders also seek information on your current liabilities and EMI commitments to determine your repayment capacity. This may include your credit card bills, other loan EMIs, dependents, etc.

5. Supporting Documents: Since most personal loans are unsecured, documentary proof of your assets and income play a vital role in your loan application process. Ensure to submit the latest and accurate documentary proof to establish your credibility.

FAQs on Rs.1 Lakh Personal Loan: