₹5 Lakh Personal Loan Features, Benefits and Interest Rates
Let’s say you have exhausted your insurance policy and are In need of ₹5 lakh to pay your family member’s hospital bills. In such a situation, the best alternative could be applying for a ₹5 lakh personal loan. Easy accessibility and flexible repayment options make personal loans a favourite among borrowers.
In this blog, we have given all the details pertaining to ₹5 lakh personal loan.
Features and Benefits of a ₹5 Lakh Loan
Here are the features and benefits of applying for a ₹5 lakh personal loan with Navi:
1. 100% Paperless Process
Thanks to technological advancements in the lending sector, certain lenders offer instant cash loan in a 100% paperless manner. This helps save time and makes the loan journey smoother.
2. Instant Disbursal
Personal loans usually have a simple application process. If you have shared correct personal details with your lender, you can get your money directly disbursed to your account almost instantly.
3. Flexible EMI Options
Personal loans usually come with a tenure of up to 7 years or 84 months. This makes it easier for you to select a tenure based on your financial standing.
4. Attractive Interest Rates
Enjoy attractive interest rates, especially if you have a pre-approved loan offer. Note that the final rate offered would depend on your credit score and repayment capabilities, among other factors.
5. No Collateral Required
Unlike home loans, you don’t have to pledge collateral for personal loans. This makes personal loans a more convenient option among other types of loans.
6. Minimal Documentation
You can get a personal loan only with your PAN or Aadhaar details.
Interest Rate on a ₹5 lakh Personal Loan
Refer to the table below to get an idea of ₹20,000 personal loan fees and charges:
| Interest Rate | 8% p.a. – 36% p.a. |
| Processing Fee | 0% – 4% of the loan amount |
| Loan Amount | Up to ₹40 lakh |
| Loan Tenure | Up to 84 months |
| Prepayment Charges | 0% to 4% |
Please note that the table is for educational purposes only. Navi doesn’t take any responsibility for the accuracy of the data presented in the table.
How to Apply for a ₹5 Lakh Personal Loan?
Follow the steps given below to apply for ₹5 lakh personal instant loan:
- Go to the lender’s website or download the cash loan app from Play Store or App Store.
- Check your loan eligibility by filling in some details such as name, address and PAN details.
- Check the interest rate offered and enter your preferred loan amount and repayment tenure.
- Submit or upload the necessary documents and complete your KYC process.
- Link your bank account. After successful verification, the loan amount will be directly disbursed to your account. Set up an auto debit to make your loan repayments on time.
Documents Required
You might need to provide the following documents to get a personal loan:
● PAN Card
● Aadhaar Card
● 3-6 months bank statements or salary slips
Eligibility Criteria
Check out the eligibility criteria before applying for a loan:
Salaried Individual
| Parameters | Requirements |
| Age | Between 18 and 65 years |
| Credit Score | 750 or above |
| Employment Stability | Must be employed in a reputed company for a minimum of 6 months |
| Employment Duration | A minimum of 1 year |
Self-employed Individual
| Parameters | Requirements |
| Age | Between 18 and 65 years |
| Credit Score | 750 and above |
| Prior Relationship with the Lender | A minimum of 6 months (to be verified from the lender) |
| Business Turnover | A minimum of ₹15 lakh |
| Profit after Tax Deduction | A minimum of ₹2 lakh |
How to Calculate your Personal Loan EMI on ₹5 Lakh Loan?
If you want to calculate your EMI manually, here is the mathematical expression for the same:
EMI = P × r × (1 + r)n/((1 + r)n – 1)
Here, P refers to the loan amount, r is the interest rate, and n is tenure or the number of months.
However, manual calculations leave room for errors and can be time-consuming. As a better and timesaving alternative, you can use an online personal loan EMI calculator. An EMI calculator is easy to use. Just enter the principal amount, loan tenure and interest rate to get accurate results within minutes.
As an example, if you take ₹5 lakh personal loan for a tenure of 5 years at an interest rate of 9.9% p.a., your EMI would be ₹10,599. Here’s a detailed breakdown of your repayment schedule.
Check your EMI on Personal Loan
Loan Amount
Rate of Interest (P.a)
%
Loan Tenure (Months)
Monthly EMI
0
Total Interest
Total Amount
Various Types of Personal Loans
1. Marriage Loan
Have that dream destination wedding plan in the back of your mind but lacking the required funds? Get an instant personal loan for marriage and enjoy your dream wedding without any worry.
2. Travel Loan
If you want to travel to your favourite destination and need funds to book your trip, you have the option to avail of an instant personal loan for travel. Enjoy quick disbursal and flexible repayment options.
3. Car Loan
Planning to purchase a car but have limited finances? Avail an instant personal loan for car and purchase your dream vehicle in no time.
4. Bike Loan
Finance your favourite two-wheeler or bike in no time with a personal loan for two wheeler. Whether you use the loan for 100% bike financing or down payment, the choice is yours!
5. Second Hand Bike Loan
Planning to get a second-hand bike but don’t have necessary funds? You can get a purchase a second-hand bike to finance your purchase.
6. Used Car Loan
Looking for a second-hand or used car but don’t have immediate cash? Avail of a personal loan for used car. Repay your loan in EMIs as per your convenience.
Final Word
If you are in need of Rs.5 lakh urgently for any purpose, you can get cash loan or personal loan to meet your requirements. However, make sure to compare interest rates and other charges before applying. Calculate your EMIs in advance to plan your finances.
If you’re looking for instant cash, download the Navi app and apply for an instant cash loan. You can get loans up to ₹20 lakh at attractive rates and flexible tenures in a 100% paperless manner. Get a Navi Cash Loan and enjoy your life to the brim.
FAQs
Ans: Lenders offer the final interest rate based on several parameters, including your credit score, repayment capacity and monthly income, to name a few. If you have a credit score above 750, you may enjoy preferential or lower interest rates on your Rs.5 lakh personal loan.
Ans: The EMI of a loan is dependent on the tenure and interest rate of the loan amount. You can calculate the EMI of your instant 5 Lakh loan using the EMI calculator at Navi.
Ans: With app-based, tech-driven financial services like Navi, you won’t need to furnish income proof. However, traditional banks may ask for income proof in the form of salary slips or bank statements. So, check with your lender before applying for a personal loan.
Ans: Your EMI depends on multiple factors like loan amount and tenure. If it’s a short-term loan, your EMIs could be on the higher side. However, for short-term loans, you will be saving more on interest, which may help you repay your loan quickly. For longer tenures, your EMIs will be less, but you will be paying more toward interest.
Yes, you can get a personal loan even if your credit score is low. However, the interest rate could be high. You may get a guarantor to get a personal loan and also start repaying your existing loans before the due date to improve your credit score.
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