5 Lakh Personal Loan

What is a ₹5 Lakh Personal Loan?

A personal loan of ₹5 Lakh is an unsecured loan. Banks and NBFCs (Non-Banking Financial Companies) offer it. You do not need to provide any collateral. It provides instant access to funds for various personal needs.

5 Lakh Personal Loan – Overview 

Why You May Need a ₹5 Lakh Personal Loan?

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.

• Acts as a bridge between immediate needs (medical emergencies, education, home repairs) and long-term financial stability.
• Offers breathing room to address pressing concerns without depleting savings or compromising future investments.
• A well-timed loan serves as an investment in future peace of mind, allowing a focus on resolving the present without sacrificing future financial goals.

Who Should Apply for a 5 Lakh Amount?

• Salaried professionals
• Self-employed individuals
• Those with a stable income and good credit history
• It’s especially useful when you need a large sum quickly and don’t want to pledge assets like property or gold.

Benefits of Taking an Loan of 5 Lakh Rupees

A ₹5 Lakh Rupees personal loan provides quick financial help without any security. It’s perfect for handling urgent or planned expenses like weddings, medical needs, or education.

• Instant Approval : Get funds in your account within 24–72 hours.
• Minimal Documentation : Only KYC and income proof required.
• Flexible Repayment : Choose EMI tenure between 1 to 5 years.
• No Collateral Required : Being unsecured, no asset is at risk.
• Loan Top-Up Option : Some lenders offer top-up loans if you have a good repayment history.

Compare ₹5 Lakh Loan With Other Popular Loan Amounts

Documents Required for ₹5 Lakh Personal Loan

To apply for a ₹5 lakh personal loan, applicants generally need to submit the following documents:

• Proof of Identity
  Aadhar Card, PAN Card, Passport, Voter ID, or Driving License

• Proof of Address
  Utility bills (electricity/water/gas), Rental agreement, Passport, or Aadhar card

• Proof of Income
  Salaried: Latest 3–6 months’ salary slips or bank statements
  Self-employed: Income Tax Returns (ITRs) of last 1–2 years

• Employment Proof
  Salaried: Employment certificate or offer letter
  Self-employed: Business registration certificate, GST registration, or trade license

• Recent Passport-sized Photographs
  Usually 1–2 copies as per lender’s requirement

Interest Rates on ₹5 Lakh Loan

Here is a table comparing the Personal loan interest rates and other charges offered by various banks in India for a personal loan of 5 Lakh

*The processing fees and prepayment charges shown above are subject to change. 

How to Calculate Your Monthly EMI for ₹5 Lakh 

Check how to calculate your ₹5 lakh personal loan EMI using a simple formula or an online Personal loan EMI calculator, with a real-life example for better understanding.

EMI Formula:
EMI = P × r × (1 + r)^n / [(1 + r)^n – 1]

Where:

• P = Loan Amount

• r = Monthly Interest Rate (Annual Rate ÷ 12)

• n = Loan Tenure in Months

Real-Life Example

Mr. Vijay needed ₹5 lakh to renovate his home. He applied for a personal loan at an interest rate of 12% p.a. for a tenure of 3 years (36 months).

Here’s how his EMI was calculated:

• Loan Amount (P): ₹5,00,000
• Annual Interest Rate: 12% → Monthly Rate (r): 1% or 0.01
• Tenure (n): 36 months

Using the formula:
EMI = ₹5,00,000 × 0.01 × (1+0.01)^36 / [(1+0.01)^36 – 1]
EMI ≈ ₹16,607 per month

So, Mr. Vijay pays ₹16,607 every month for 36 months to repay his ₹5 lakh loan.

Rs 5 Lakh Personal Loan EMI for up to 6 Years

Repaying a ₹5 Lakh personal loan over a longer tenure can ease your monthly EMI burden and help you manage your finances better. Below is a sample EMI breakdown at 12% annual interest rate.

Comparison of ₹5 Lakh Personal Loan Offers

Here is a table comparing the interest rates offered by various banks in India for a personal loan of INR 5 Lakh:

*Rates updated on July 15, 2025, and may vary on the official website.

Apply for Five Lakh Personal Loan Online?

Securing a 5 lakh personal loan involves a systematic approach.

• First, check eligibility criteria based on income, age, employment, and credit score.
• Next, research and compare interest rates, fees, and terms to choose a lender that aligns with your financial goals.
• For a convenient application process, consider Urban Money, where you can apply on their official website or contact a loan specialist at 1800 208 3344. Urban Money aims to provide a swift solution, ensuring a smooth and efficient process for obtaining the required funds.

Explore More Loan Options on Urban Money

Looking for other types of loans? Urban Money offers a variety of personal loan solutions tailored to different needs: