1 Lakh Personal Loan

Personal loans have emerged as a flexible financial tool to address various monetary needs, such as debt consolidation, home improvements, or unforeseen medical expenses. Among the frequently sought loan amounts is INR 1 lakh for personal use. This sum is substantial enough to cover important expenditures while remaining manageable for repayment, preventing undue financial strain on the borrower.

In addition, calculating the Equated Monthly Installment (EMI) for a personal loan of INR 1 lakh is influenced by both the interest rate and the chosen loan tenure. Numerous online resources are available to assist in accurately determining the EMI. Being aware of your EMI in advance enables efficient financial planning and ensures that loan repayment remains comfortably within your means.

1 Lakh Loan Interest Rates & Charges

Taking a loan will always have additional payments and fees. It is prudent to be aware of these charges beforehand. Some of these charges can include processing fees, interest rates, preparation charges, and foreclosure charges. Here is a table of a few banks and their respective interest rates and charges. 

Bank Interest Rate Processing Fee Part Prepayment Charges Foreclosure Charges
Axis Bank 10.49% - 24% Up to Rs 4,999 N/A 2% - 4% of principal outstanding
HDFC Bank 10.50% - 21.50% Up to 2.50% of the loan amount is subject to a minimum of Rs. 1,999/- & Maximum of Rs. 25000/- for Salaried Customers. N/A 13-24 Months - 4% of Principal Outstanding,25-36 Months - 3% of Principal Outstanding,>36 Months - 2% of Principal Outstanding
ICICI Bank 10.50% - 18.49% Up to 2.25% per annum of loan amount plus GST N/A 5% per annum of principal outstanding plus GST
Kotak Mahindra Bank 10.99% - 20.99% Up to 2.5% of the loan amount + GST and other applicable statutory levies N/A N/A
IndusInd Bank 10.99% - 16.00% Up to 2.50% of the loan amount plus tax N/A N/A
Bajaj Finserv 11.00% - 35.00% Up to 3.99% of the loan amount + GST and other applicable statutory levies NIL NIL
State Bank of India 11.05% - 15.05% Rs.1000/- +GST (Non-refundable) for loans up to Rs.10 lakh and Rs.2000/- +GST (Non-refundable) for loans above Rs.10 lakh and up to Rs.20 lakh. NIL (for loans up to Rs.25 lakh) or as per the scheme terms and conditions (for loans above Rs.25 lakh) NIL (for loans up to Rs.25 lakh) or as per the scheme terms and conditions (for loans above Rs.25 lakh)

Why Need 1 Lakh Personal Loan?

Obtaining a personal loan of INR 1 lakh is a versatile solution for various reasons. There are many reasons why one would need a personal loan. Firstly, if you are comparing a personal loan with other kinds of loans, such as car or home loans, personal loans can be utilised for a myriad of purposes. They allow borrowers the flexibility to make use of their credit based on whatever requirements they have. 

With several financial institutions streamlining the application process to get a personal loan of 1 lakh sanctioned significantly, borrowers have an excellent opportunity to procure immediate financial requirements. Moreover, the documentation has also been simplified. And in many cases, banks sanction loans without any documents as well. This not allows the borrowers to acquire a loan of 1 Lakh swiftly but also allows customers to meet financial assistance on urgent basis. All of this has indeed made securing a 1 Lakh personal loan a viable and effective solution. 

Comparison of Interest Rates for Personal Loan of 1 Lakh

Borrowers will greatly benefit if they spend a little of their time comparing the interest rates of various lenders. This can help them secure the best possible bank that suits their financial capacity. Here is a table of banks and their respective interest rate offers on a personal loan of 1 lakh. 

Bank Interest Rate
State Bank of India 11.05% – 15.05%
Punjab National Bank 10.40% – 16.95%
Axis Bank 10.49% – 24%
HDFC Bank 10.50% – 21.50%
ICICI Bank 10.50% – 18.49%
Kotak Mahindra Bank 10.99% – 20.99%
Bajaj Finserv 11.00% – 35.00%
Union Bank of India 11.40% – 15.50%
Bank of India 10.25% – 14.75%
Central Bank of India 10.95% – 12.55%

Eligibility Criteria for 1 Lakh Personal Loan

To be eligible for a personal loan of INR 1 lakh, meeting specific criteria is imperative. These criteria are primarily centred around your financial standing, encompassing factors such as your monthly earnings, credit rating, occupational status, and age.

  • A stable monthly income is of paramount importance, as it reflects your ability to repay the loan promptly. 
  • Attaining a commendable credit score, ideally 700 or higher, is often a prerequisite, as it demonstrates a strong creditworthiness level.
  • Maintaining consistent employment, whether salaried or self-employed, showcasing a steady stream of income, is generally anticipated. 
  • The age bracket can vary, but typically, individuals falling within the age range of 21 to 60 years are taken into consideration for loan applications.

1 Lakh Personal Loan Payment Tenures

Loan terms for a personal loan of 1 lakh will vary from borrower to borrower. Any customer with a good credit score can negotiate a longer repayment duration. However, a borrower with a lower credit score may not be able to avail of the same benefit. 

How to Get a 1 Lakh Personal Loan?

Acquiring a 1 lakh INR personal loan online has never been more straightforward. Follow these outlined steps:

  • Access the lender's official website or download their mobile application.
  • Locate and select the personal loan segment.
  • Complete the application form accurately by providing all the requisite information.
  • Upload the necessary documentation as specified.
  • Submit your completed application.

Documents Required for 1 Lakh Lakh Personal Loan

To apply for a personal loan of INR 1 lakh, it's important to furnish essential documents that substantiate your identity, residence, income, and employment standing. Although specific requirements may differ among lenders, typically the following documents are necessary:

  • Proof of Identity: This could include your PAN card, Aadhaar card, Driving License, or Passport.
  • Proof of Address: You may provide utility bills, Aadhaar card, or a Lease/Rent Agreement as proof of your residential address.
  • Proof of Income: It's essential to showcase your financial stability through documents such as salary slips for the past three months or bank statements displaying your income details.
  • Proof of Employment: Documentation validating your employment status, like an employment letter or any other relevant document demonstrating your current job status, is vital.

Features

A personal loan of INR 1 lakh is a popular financial tool owing to its adaptability and ease of acquisition. This sum can be invaluable for diverse requirements, including unexpected medical expenses, financing a getaway, or supporting a small-scale entrepreneurial endeavour. Here are some notable features and advantages associated with a personal loan of this magnitude:

  • Unsecured Financing: Personal loans are typically unsecured, eliminating the need for collateral or a security deposit. This feature proves advantageous for individuals lacking valuable assets or those averse to risking them.
  • Versatile Repayment Terms: Financial institutions often provide a range of flexible repayment periods, typically spanning from 12 to 60 months. This enables borrowers to select a tenure aligning with their financial circumstances.
  • Swift Disbursement: Following approval, personal loans are swiftly disbursed, frequently within a few hours to a couple of days. This expeditious process renders them ideal for addressing urgent financial exigencies.
  • Credit Score Enhancement: Timely repayment of the loan can potentially enhance the borrower's credit score, augmenting the likelihood of securing future loans.
  • Simplified Documentation: Compared to other loan types, personal loans necessitate comparatively lesser documentation, streamlining the application procedure.
  • Absence of Guarantor Requirement: Typically, personal loans do not mandate a guarantor, simplifying the loan approval process for applicants.

By considering a personal loan of INR 1 lakh, individuals can leverage these features to meet various financial objectives efficiently and effectively.

Key Points Lenders Consider While Offering Personal Loans of Rs 1 Lakh

Some of the key points that lenders consider while offering personal loans of Rs 1 lakh are:

  • Personal loans are usually offered to applicants with a minimum monthly income of Rs 15,000. The monthly income criteria set by some lenders might be higher.
  • Applicants with EMI/NMI (net monthly income) ratio of around 55% usually have higher chances of getting personal loans. 
  • Applicants with credit scores of 750 and above have higher probability of availing of personal loans at lower interest rates.
  • Applicants employed by top private sector companies and PSUs have higher chances of availing of personal loans due to their higher job stability and income certainty. Lenders may also consider the applicant’s work experience, qualifications, and industry while evaluating their loan eligibility.
  • Applicants who are closer to retirement age may have lower chances of getting a personal loan as they have a shorter repayment period. Lenders may also impose a higher interest rate or a lower loan amount for such applicants.

Frequently Asked Questions (FAQs)

What is a 1 lakh personal loan?

A 1 lakh personal loan is monetary assistance provided by a bank or a financial institution wherein a borrower has to repay an interest rate along with the principal amount back to the bank within a specified period. They can make use of their personal loan amount as per their financial needs and requirements. 

Do I need collateral to secure a 1 lakh personal loan?

Personal loans are generally unsecured loans that do not require any collateral. However, depending on the lender’s policies, one might also have to pledge collateral against their loan amount.

How quickly can I get the 1 Lakh loan amount after approval?

The earliest you can secure a personal loan of 1 lakh is 24 to 36 hours. There are a few lenders that offer instant personal loans with minimal documentation.

How does the interest rate work for a 1 Lakh personal loan?

When a borrower takes a personal loan of 1 lakh, the bank charges them interest that they have to pay on a monthly basis. This rate of interest varies from bank to bank.

Can I prepay or foreclose the 1 lakh personal loan?

Yes, you can prepay or foreclose a 1 lakh personal loan. However, depending on the lenders, you may have to either pay foreclosure or prepayment penalties or not at all. 

How much credit score do I need for a 1 lakh loan?

Ideally, a credit score of 650 and above is considered for a good personal loan. However, many lenders offer loans to candidates with lower credit scores as well, but the borrowers have to compromise on various aspects, such as higher interest rates.

Can I get a loan of INR 1 lakh?

Yes, one can get a personal loan of INR 1 lakh. Customers have a myriad of options in terms of financial assistance providers. Take some time to research the interest rate offers and other policies before applying.

How can I get a 1 lakh loan immediately?

There are a few lenders that approve, sanction, and disburse loans within 24 to 36 hours. These lenders include Bajaj Finserv, LoanTap, and MoneyView. The documentation will be minimal and can be completed within a few minutes as well. Instant personal loans are a great way to meet quick financial requirements.

Can I get a personal loan if my salary is 1 lakh?

Yes, you can certainly get a personal loan if your salary is INR 1 lakh. The minimum requirement for salary that most lenders consider is INR 15,000 to INR 25,000. Anything above that can be eligible for a lucrative loan amount.

Will I get a 1 lakh personal loan if I don't have a bank account?

You can procure a 1 lakh personal loan even if you don’t have a bank account. However, it will be rather difficult. You can apply for an auto title loan or a pawnshop loan, where you can place collateral on your vehicle or your valuables.

Will my EMI be auto-debited from my bank account?

Personal loan EMIs will be auto-debited if the mandate is set for the same. One can inform the bank to make the arrangements or use third-party apps to enable the auto-debit option.

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