It is not every day that you will need a large sum of money, say like ₹5 Lakh, all at once. However, due to exceptional circumstances, people may fall into financial crises that require immediate funds to resolve. A favorable option to meet these unexpected expenses is a loan, especially if it is unsecured, with minimal paperwork, reasonable eligibility criteria, quick approval and immediate dispersal time.
Borrowers can simply search “best personal loan in India” online and find many suitable options. These loans are available for people who are in urgent need of money and do not want to provide collateral to avail it. However, as stated earlier, applying for a large loan amount requires verification before approval.
Simply put, no financial institution or bank will easily grant a loan without cross-checking. Physically going to banks to borrow ₹5 Lakh will be a long and taxing procedure. If you find yourself in a similar situation, opting for a quick loan application online is a practical solution.
Yet even online loan applications are not approved until a borrower meets certain requirements. The Personal Loan Eligibility The criteria for an online loan of ₹5 Lakh are:
- The prospective borrower must be an Indian citizen.
- The age of the candidate applying for the loan at the time of the loan application must be at least 22 years old and not more than 58 years old at the time of the maturity of the loan.
- The loan amount is only applicable to salaried people working in private or government organizations.
- Applicants must have a monthly net salary of at least ₹20,000.
- The most crucial aspect of personal loan eligibility for any loan is a high credit score. A credit score of 750 or above will get your ₹5 Lakh loan approved. It could also help you get the loan at lower interest rates.
These are some of the essential but mandatory personal loan eligibility criteria to get a sanctioned personal loan.
Some facts about ₹5 Lakh personal loan:
- All established banks and NBFCs like Poonawalla Fincorp offer personal loan credits for an advance measure of ₹5 Lakh.
- The interest rate for a personal loan generally starts from 9.99% per annum for five years.
- Interest rates on a personal loan of ₹5 Lakh are determined based on the borrower’s monthly income, credit rating, etc.
- Most repayment terms are up to five years.
- In most cases, processing fees vary. Few lenders also defer the management fees during their one-time offers.
- The credit amount can be used exclusively for individual reasons.
These are specific facts and figures that a potential borrower should know before going in search of the best personal loan in India. Going into the field before any prior knowledge and research is extremely risky.
Another critical aspect of any loan application, physical or online, is the documentation process. It involves all the required documents to get a personal loan of ₹5 Lakh. The documents required for employees are:
- PAN card/Aadhar card
- Identity Confirmation Proof
- Proof of address confirmation
- Signature Authentication Proof
- Borrower’s bank statements for the last few months
- Most recent payslip of at least three months.
- IRR/Form 16
With the required documents in hand and a decent credit score, borrowers will most likely be able to secure the best personal loans in India. As a borrower, you must read all the terms and conditions before proceeding with the loan procedure. Also, only go for safe and secure organizations to avoid scams.
A financial crisis is very stressful and can affect an individual’s ability to pay close attention to detail during the application process: please proceed with the utmost caution.