Get a 1 Lakh Personal Loan: Compare and Choose the Best Offer

Looking to raise 1 Lakh from a personal loan in India? Check out the list of top lending institutions that offer funds to a customer base with attractive interest rates and flexible repayment tenure. This piece gives you a complete synopsis of the application process, eligibility criteria, and the risk associated with availing of a personal loan in India. Have a happy read to get the best deal in the market that aligns with your financial objectives.

Table of Contents

10 Best 1 Lakh Personal Loan Options

Lending Institution	Interest Rates (Per annum)	Processing Fee
ICICI Bank	Starts at 10.75%	0.50% to 2% of the loan amount
SBI	From 11% – 15%	Upto 0.35% of the loan amount plus taxes
Bajaj Finserv	Starts at 13%	Upto 3.93% of the loan amount
Tata Capital	Starts at 10.99%	Upto 3% of the loan amount
IndusInd Bank	Starts at 10.49%	Upto 3% of the loan amount
IDFC Bank	Starts at 10.49%	Upto 3.5% of the loan amount
YES Bank	Starts at 10.99%	Upto 2% of the loan amount
Kotak Mahindra Bank	Starts at 10.99%	Upto 3% of the loan amount
Axis Bank	Starts at 10.49%	At the discretion of the bank
MoneyTap	13% to 24.03%	2% plus service tax

Eligibility Criteria for 1 Lakh Personal Loan

To be eligible for a personal loan of Rs. 1 Lakh. You must meet the following criteria:

– An Indian resident.
– Attain at least 21 years of age.
– Have a regular source of income.

– Maintain a good credit score.
– Have a PAN card and valid identity proof recognized by the Indian government.
– You must have a valid bank account.

Documents Required for 1 Lakh Personal Loan

The documents required for a personal loan of Rs. 1 lakh will vary from lender to lender. Still, generally, you will need to provide the following documents:

1. Identity proof: PAN card, Aadhar card, Voter’s ID, Driving License, etc.

2. Address proof: Ration card, Utility bill, Bank statement, etc.

3. Income proof: Salary slips, Form 16, Bank statement, etc.

4. Cancelled cheque of the bank account where you want the loan amount to be credited

5. Bank statements of the last six months

6. Photographs

7. Loan application form

EMI for Rs 1 Lakh Personal Loan for Tenures of 1-5 Years

The following table showcases the EMI amount for a 1 lakh personal loan for 1-5 years.

Loan Amount	Tenure	Interest Rate	EMI Amount
1,00,000	1	12%	8,884.88
1,00,000	2	12%	4,707.35
1,00,000	3	12%	3,321.43
1,00,000	4	12%	2,633.38
1,00,000	5	12%	2,224.44

How to Use EMI Calculator?

EMI calculators are self-help tools that allow users to compute the EMI amount on a personal loan. The user must mention the values on the dashboard to review the EMI amount on the personal loan almost immediately.

How to Apply for a Personal Loan of Rs 1 Lakh?

Implement the following steps to apply for a 1 lakh personal loan in India successfully.

1. Check your eligibility: Before applying for a personal loan, you must check your eligibility to ensure that you qualify for the loan amount you seek. You must provide the lender with information about your income, savings, debts, and other financial obligations to do this.

2. Compare lenders: Once you have determined your eligibility, you can compare lenders to find the best loan terms and interest rates. Compare loan features such as repayment terms, fees, and customer service.

3. Choose a lender: Once you have compared lenders and found the best loan terms, you can choose a lender and submit an application. Be sure to read the terms and conditions of the loan carefully before signing.

4. Submit supporting documents: You must provide proof of your income, address, identity, and other personal documents to the lender.

5. Wait for approval: The lender will review your application and supporting documents and decide on your loan. Depending on the lender, the approval process can take a few days or weeks.

6. Receive funds: If your loan is approved, the lender will transfer the funds to your bank account. You can then use the funds for any purpose you wish.

Factors Considered by Banks and NBFCs For Evaluating 1 Lakh Personal Loans

Some factors considered by banks and NBFCs for Evaluating 1 Lakh Personal Loans are listed below.

1. Credit History: Banks and NBFCs usually evaluate a borrower’s credit history before evaluating a loan application. A good credit score indicates a borrower’s creditworthiness and helps the lender make an informed decision.

2. Income: Banks and NBFCs consider the applicant’s income when evaluating a loan application. Higher income helps the borrower avail of a higher loan amount and helps the lender assess the borrower’s repayment capacity.

3. Employment Status: Banks and NBFCs usually consider the applicant’s employment status and job stability when evaluating a loan application. The lender will analyze the borrower’s employment history, current job, and salary before approving a specific loan amount.

4. Age: Banks and NBFCs consider the applicant’s age when evaluating a loan application. Generally, banks and NBFCs prefer to lend to borrowers in their productive age group with a steady income.

5. Collateral: Banks and NBFCs may consider collateral when evaluating a loan application. When a borrower cannot provide suitable collateral, the lender may reject the loan application.

6. Debt-to-Income Ratio: Banks and NBFCs consider the borrower’s debt-to-income ratio when evaluating a loan application. This ratio is the total amount of debt the borrower carries divided by their total income. A high debt-to-income ratio indicates that borrowers may be unable to manage their finances properly and may default on their loan payments.

Tips for Getting Approved for a 1 Lakh Personal Loan

Tips for getting approved for a 1 lakh loan–

1. Check your Credit Score: Before applying for a personal loan, it is essential to check your credit score to know your eligibility for the loan. A good credit score will help you get a better interest rate on a loan.

2. Compare Different Lenders: Thoroughly comparing different lenders and the loan products they offer will help you get the best deal.

3. Choose a Loan Product: Decide on the loan product that best suits your needs. Some lenders offer pre-approved loans, which are often easier to approve.

4. Accurate Information: Provide accurate information when applying for a loan. Lenders will verify the information you provide, and if they find any discrepancies, they may reject your application.

5. Make a Down Payment: A down payment can help you get approved for a more significant loan amount.

6. Secure a Co-Signer: If you have a family member or friend who can co-sign the loan, it will increase your chances of getting approved.

7. Have a Steady Source of Income: A steady source of income will help you get approved for a loan. Lenders want to make.

What are The Risks Associated With a Personal Loan?

The following risk factors have been associated with applying for a 1 lakh personal loan in India.

Credit Risk: The risk of being unable to repay the loan due to a lack of creditworthiness.
Interest Rate Risk: The risk of interest rates increasing, which can lead to higher monthly payments and potential default.
Default Risk: The risk of being unable to make timely payments on the loan, negatively impacting your credit score.
Liquidity Risk: The risk of being unable to access the money quickly in an emergency.
Repayment Risk: The risk that the loan will be too large for you to pay back within the agreed-upon timeline.
Inflation Risk: The risk that inflation will erode the value of your loan and reduce its purchasing power.

Repayment Options for 1 Lakh Personal Loan

A borrower can repay their 1 lakh loan through the following repayment methods:

Lump-sum Payment: One-time payment of the entire loan amount, plus any applicable interest and fees.
Monthly Installments: Regular payments over some time, usually in monthly installments.