2 Lakh Personal Loan

Personal loans have emerged as a convenient solution to meet various financial requirements, whether it's for debt consolidation, home renovation, or an unexpected medical emergency. One commonly sought-after amount is the INR 2 Lakh Personal Loan. This sum is significant enough to cover substantial expenses, yet manageable enough to repay without overburdening the borrower. 

Moreover, the Equated Monthly Installment (EMI) for your INR 2 Lakh Personal Loan depends on the interest rate and the loan tenure. Many online tools can help you calculate your EMI. Knowing your EMI beforehand will help you manage your finances better and ensure you can comfortably repay the loan.

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.

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 Urban Money’s EMI calculator to estimate your monthly payments and total interest payable for different tenures and interest rates.

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]


  • 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.

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.

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.

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.

Frequently Asked Questions (FAQs)

Can a student get a 2 lakh loan?

Yes, a student can get a 2 lakh loan from some lenders if they meet certain eligibility criteria. For example, Finnable offers personal loans of up to 2 lakh for students who are enrolled in a full-time course at a reputed college or university and have a co-applicant who is a salaried employee with a minimum income of Rs. 20,000 per month.

Can I avail of a Rs 2 lakh personal loan without income proof?

No, it is not possible to avail a 2 lakh personal loan without income proof from most lenders. Income proof is one of the essential documents required to verify your repayment capacity and creditworthiness. However, some lenders may accept alternative proofs of income such as bank statements, tax returns, salary slips, or income certificates. 

Can I prepay or foreclose on the ₹2 lakh personal loan?

Yes, you can prepay or foreclose the 2 lakh personal loan before the end of the tenure if your lender allows it. However, you may have to pay some charges or fees for doing so. The charges may vary depending on the lender, loan amount, tenure, and interest rate. For example, HDFC Bank charges up to 4% of the outstanding principal as prepayment or foreclosure charges for personal loans.

How does a ₹2 lakh personal loan affect my credit score?

A 2 lakh personal loan can affect your credit score positively or negatively, depending on how you manage it. If you repay the loan on time and in full, it can improve your credit score by showing your credit discipline and responsibility.

What happens if I miss an EMI payment for a ₹2 lakh personal loan?

If you miss an EMI payment for a 2 lakh personal loan, you may have to face some consequences, such as late payment fees or penal interest as per the lender’s policy, getting a negative remark on your credit report, facing legal action, etc. 

How long is the repayment tenure for a ₹2 lakh personal loan?

The repayment tenure for a 2 lakh personal loan can range from 12 months to 60 months, depending on the lender and your preference. You can choose a shorter tenure to save on interest costs but pay higher EMIs, or a longer tenure to reduce your EMIs but pay more interest overall.

Can I get a ₹2 lakh personal loan with a low credit score?

It may be difficult to get a 2 lakh personal loan with a low credit score, as most lenders prefer applicants with good credit scores of at least 750 or above. However, some lenders may offer personal loans to applicants with low credit scores if they have other factors such as a high income, stable employment, collateral, or a guarantor.

Can I apply for a ₹2 lakh personal loan online?

Yes, you can apply for a 2 lakh personal loan online from various lenders such as banks, NBFCs, or fintech platforms. You can compare the interest rates, fees, features, and eligibility criteria of different lenders online and choose the best option for your needs.

Can I increase the loan amount after availing a ₹2 lakh personal loan?

No, you cannot increase the loan amount after availing a 2 lakh personal loan from most lenders. Once you have signed the loan agreement and received the loan amount, you cannot change the terms and conditions of the loan. However, some lenders may allow you to apply for a top-up loan or an additional loan if you have a good repayment history and credit score.

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