Features & Benefits of INR 2 Lakh Personal Loan
Personal loans are a popular financial instrument due to their flexibility and easy availability. A personal loan of INR 2 Lakh can come in handy for a variety of needs, be it dealing with unexpected medical expenses, funding a vacation, or even supporting a small business venture. Here are some features and benefits of a personal loan of this amount:
- Unsecured Loan: Personal loans are usually unsecured, meaning that they do not require collateral or a security deposit. This can be beneficial for people who do not own property or prefer not to risk it.
- Flexible Repayment Tenure: Most financial institutions offer a flexible repayment tenure ranging from 12 months to 60 months. This allows borrowers to choose a repayment period that suits their financial situation.
- Quick Disbursal: Upon approval, personal loans are quickly disbursed, often within a few hours to a couple of days. This makes them ideal for urgent financial needs.
- Boost Credit Score: If you repay your loan on time, it could help improve your credit score, thereby increasing your chances of securing loans in the future.
- Less Documentation: Compared to other types of loans, personal loans usually require less documentation, making the application process less cumbersome.
- No Guarantor Required: Personal loans do not usually require a guarantor, simplifying the loan approval process.
- Tax Benefits: In some cases, tax benefits may be available on personal loans if the loan amount is used for specific purposes, like purchasing or renovating a property.
Rs. 2 Lakh Personal Loan Eligibility
To avail an INR 2 Lakh Loan, certain eligibility criteria must be met. These are primarily based on your financial profile, which includes your income, credit score, employment status, and age.
- Regular monthly income is a crucial parameter as it reflects your repayment capacity.
- A good credit score, preferably 700 and above, is often required as it indicates a high level of creditworthiness.
- Stable employment, either salaried or self-employed, with a steady income flow, is typically expected.
- The age criteria may vary, but usually, applicants between the age of 21 and 60 years are considered.
Interest Rates for INR 2 Lakh Personal Loan
Here is a table of some banks/NBFCs that offer personal loans of Rs 2 lakh and their interest rates:
| Lender | Interest Rate (p.a.) |
| HDFC Bank | 10.50% onwards |
| SBI | 11.00%-15.00% |
| ICICI Bank | 10.75% onwards |
| Axis Bank | 10.49% onwards |
| Kotak Mahindra Bank | 10.99% onwards |
| IndusInd Bank | 10.49% onwards |
| IDFC First Bank | 10.49% onwards |
| Bajaj Finserv | 11.00% onwards |
| Tata Capital | 10.99% onwards |
| Fullerton India | 11.99%-23.99% |
| MyMoneyMantra | 9%-24% |
You can also use Pluto Money's EMI calculator to estimate your monthly payments and total interest payable for different tenures and interest rates.
Documents Required for INR 2 Lakh Personal Loan
To apply for an INR 2 Lakh Loan, you'll need to provide some necessary documents that establish your identity, address, income, and employment status. The specifics may vary by lender, but typically, the following are required:
- Identity Proof: PAN card, Aadhaar card, Driving License, or Passport.
- Address Proof: Utility bills, Aadhaar card, or Lease/Rent Agreement.
- Income Proof: Salary slips for the last three months or bank statements showing income details.
- Employment Proof: An employment letter or any other document that shows you are gainfully employed.
Remember, proper and accurate documentation expedites the loan process and increases your chances of loan approval.
Why Do You Opt Rs. 2 Lakh Personal Loan?
An INR 2 Lakh Personal Loan is a viable option for several reasons. The first is its multipurpose nature - unlike specific loans such as car loans or home loans, personal loans can be used for any legitimate purpose. It provides the borrower with the flexibility to use the loan amount as per their needs.
Moreover, the process for acquiring an INR 2 Lakh Personal Loan Online has been significantly streamlined, making it a suitable choice for immediate financial requirements. With minimum paperwork and rapid disbursement, you can obtain an Instant Personal Loan INR 2 Lakhs with relative ease, making it ideal for urgent financial needs.
What Will Be the INR 2 Lakh Personal Loan EMI for 5 Years?
To calculate the EMI for a loan, we need to know the interest rate. Since you didn't specify one, let's assume a relatively common rate of 10% annual interest for simplicity. The formula for EMI (Equated Monthly Installment) is as follows:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where:
- P is the principal loan amount. In this case, it's INR 2,00,000.
- R is the rate of interest calculated on a monthly basis. (i.e., R = Annual Rate of Interest/12/100). If it's 10% per annum, then R = 10/12/100 = 0.00833.
- N is the loan term or tenure/duration in number of months. For 5 years, N = 5*12 = 60 months.
Let's calculate:
EMI = [2,00,000 x 0.00833 x (1+0.00833)^60]/[(1+0.00833)^60 - 1] EMI = INR 4,248
This is a fixed amount you would need to pay every month for 5 years.
Now, let's create an amortisation table for the first 6 months and the last month to see the breakdown of principal and interest payments. Please note that as time goes on, the interest portion decreases while the principal portion increases.
| Month | Opening Balance | EMI | Principal | Interest | Closing Balance |
| 1 | 2,00,000 | 4,248 | 2,498 | 1,750 | 1,97,502 |
| 2 | 1,97,502 | 4,248 | 2,515 | 1,733 | 1,94,987 |
| 3 | 1,94,987 | 4,248 | 2,532 | 1,716 | 1,92,455 |
| 4 | 1,92,455 | 4,248 | 2,549 | 1,699 | 1,89,906 |
| 5 | 1,89,906 | 4,248 | 2,567 | 1,681 | 1,87,339 |
| 6 | 1,87,339 | 4,248 | 2,584 | 1,664 | 1,84,755 |
| … | … | … | … | … | … |
| 60 | 4,248 | 4,248 | 4,238.00 | 10 | 0 |
Note: This table is a simplification. The exact values may vary slightly due to rounding and different days in different months. Also, different lenders might calculate interest slightly differently. Always refer to your specific loan agreement for exact details.
How to Apply for INR 2 Lakh Personal Loan Online?
The process to apply for an INR 2 Lakh Personal Loan Online is now simpler than ever. Follow these steps:
- Visit the lender's website or download their mobile application.
- Navigate to the personal loan section.
- Fill out the application form with all the necessary details.
- Upload the required documents.
- Submit the application.
You'll typically receive an instant decision on your loan application, making the Instant Personal Loan INR 2 Lakhs an attractive option for those who need funds quickly.