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Need a safety net for unexpected medical bills? Want to breathe new life into your home without tapping into savings? A 5 lakh personal loan can be the answer. For instance, a Personal Loan of INR 5 Lakhs can be your go-to versatile unsecured loan designed to meet diverse personal needs like education, home renovation, or travel. With no collateral or guarantor requirements, banks and NBFCs can disperse a 5 Lakh personal loan with competitive interest rates and flexible repayment options.
Explore several types such as term loans, Flexi term loans, and Flexi hybrid loans for your convenience. Eligibility is based on age, income, credit score, and employment status. Furthermore, customers have the provision to apply easily through the Pluto Money website, enabling them to get loans smoothly from their desired lenders. This guide breaks down the comprehensive details of procuring a 5 Lakh personal loan.
The features of a 5 lakh personal loan may vary among lenders, but common attributes include:
To qualify for a 5 lakh personal loan, applicants must meet certain criteria. They should be Indian nationals aged between 21 to 67 years, employed either in the public or private sector, or be self-employed. A minimum monthly income of ₹15,000 is required, and a favourable credit score of 600 or higher enhances the chances of loan approval. Applicants are advised to verify specific requirements with lenders for accurate and up-to-date information.
Here is a table comparing the interest rates and other charges offered by various banks in India for a personal loan of 5 Lakh:
| Bank Name | Processing Fee | Prepayment Charges |
| HDFC Bank | Up to 2.50% | 2% to 4% of the outstanding principal |
| ICICI Bank | Up to 2.25% | 5% of the principal outstanding |
| State Bank of India | 1% | Nil |
| Axis Bank | Up to 2% | 1% to 2% of the outstanding principal |
| Kotak Mahindra Bank | Up to 2.5% | 5% of the principal outstanding |
*The processing fees and prepayment charges shown above are subject to change.
To secure a 5 lakh personal loan, borrowers typically need to provide essential documents for the application process. These commonly include proof of identity, such as an Aadhar card or passport, address proof like utility bills or rental agreement, and proof of income, which may involve salary slips or income tax returns. Additionally, employment proof, in the form of an employment certificate or business registration documents for self-employed individuals, can also be required.
Life's uncertainties require financial flexibility, and a 5 lakh personal loan stands as a versatile solution, providing a cushion for unexpected turns while preserving long-term goals.
Here is a table comparing the interest rates offered by various banks in India for a personal loan of INR 5 Lakh:
| Bank Name | Interest Rate |
| HDFC Bank | 9.00% to 13.86% |
| ICICI Bank | 11.25% onwards |
| State Bank of India | 10.25% to 10.50% |
| Axis Bank | 15.20% |
| Kotak Mahindra Bank | 11.5% to 24% |
*Please note that the interest rates mentioned above are subject to change.
When considering a 5 lakh personal loan, borrowers often have the flexibility to choose from various payment tenures based on their financial preferences and capabilities. Moreover, the loan tenure, or repayment period, plays a significant role in determining the EMIs and the overall cost of the loan.
The idea is simple. When choosing a loan tenure, Be wary of your goals, preferences, and financial status. A shorter term might result in faster debt payback, but it might also mean larger monthly obligations, and vice versa. Lastly, utilise EMI calculators to see how different loan tenures would affect your monthly payments and total interest paid before deciding on loan tenure.
Securing a 5 lakh personal loan involves a systematic approach.
When granting a 5 lakh personal loan, lenders consider the following factors thoroughly:
Debt-to-Income Ratio: A lower ratio-to-debt ratio indicates a healthier financial position and enhances the borrower's eligibility.