₹20,000 Personal Loan Features, Benefits, EMI and Interest Rate
Looking for a ₹20,000 loan to meet immediate financial requirements? You can apply for a personal loan and get access to the required funds. However, before applying for a loan, you need to have a deeper understanding of loan interest rates, your EMI obligations, eligibility criteria, etc., so that you can make an informed decision.
Let’s look at some of the important factors that could influence your ₹20,000 loan personal loan.
What is a Personal Loan?
A personal loan is an unsecured loan, meaning you don’t have to pledge any collateral to avail of a loan. Personal loans require minimal documentation and are approved depending on your eligibility. You can use personal loans to finance any urgent requirement – from paying medical bills to funding your wedding.
Talking about loan eligibility, lenders could consider your CIBIL score, monthly income, credit history, etc., before deciding on the loan amount and interest rate.
The interest rate varies from lender to lender and it depends on your repayment capability and creditworthiness. You can use a persona loan for multiple purposes.
Thanks to technological advancements in the lending sector, getting a personal loan has become a lot easier than it was a few years ago. You can even get instant personal loans on aadhaar and PAN card with a few lenders.
Feature and Benefits of a ₹20,000 Loan
Here are some features and benefits of ₹20,000 loan:
1. 100% Paperless Process
Lenders like Navi offer urgent cash loan without documents. This helps save time and eases the customer journey
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 credited to your account within minutes.
3. Flexible EMI Options
Enjoy flexible repayment options up to 84 months. Select your preferred loan tenure and repay as per your convenience.
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
Personal loans are unsecured loans, as in, you don’t have to pledge collateral or guarantor.
6. Minimal Documentation
Though you cannot get a personal loan without documents, today, you can get a personal loan with a few generic documents like PAN and Aadhaar.
Interest Rate on a ₹20,000 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 ₹20,000 Personal Loan?
Follow the steps given below to apply for ₹20,000 personal instant loan:
- Go to the lender’s website or download their 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
Here are the documents you need to apply for an urgent ₹20,000 personal loan:
- Income Proof: 3-6 months bank statements or salary slips
- Identity Proof: PAN card, aadhaar card, driving licence, voter ID, and ration card
- Address Proof: Voter ID, aadhaar card, and ration card
Eligibility Criteria
The following tables lay out the eligibility criteria for applying for a Navi personal 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 ₹20,000 Loan?
You can calculate your personal loan EMI manually by using this formula:
EMI = P × r × (1 + r)n/((1 + r)n – 1) where P= Loan amount, r= interest rate, n=tenure in number of months.
However, manual calculations are time-consuming and leaves room for errors. You can alternatively use a personal loan EMI calculator. All you need to do is enter the loan amount, tenure and interest rate to view the EMI amount within seconds.
Let’s understand this with an example:
Let’s say you have taken a loan of ₹20,000 for a tenure of 3 years starting today. The interest rate charged is 13% p.a. Upon calculation, your EMI would be ₹ 674.
Calculate Your Personal Loan EMI
Loan Amount
Rate of Interest (P.a)
%
Loan Tenure (Years)
Years
Monthly EMI
0
Total Interest
Total Amount
Types of Personal Loans
The different kinds of scenarios that you can use a personal loan for include:
1. Marriage Loan
Have that dream destination wedding plan but lacking the required funds? Or want to travel abroad for your honeymoon? Get an instant personal loan for marriage to meet your requirements.
2. Travel Loan
There is no need to compromise on the long-waited family vacation. Get an instant personal loan for travel purposes and travel to your favourite destination stress-free.
3. Car Loan
Planning to purchase a car but have limited finances? Avail an instant personal loan for car and get your dream vehicle in no time.
4. Bike Loan
Make your two-wheeler dream come true with personal loans. Get a personal loan for two wheeler. and make the down payment in no time.
5. Second Hand Bike Loan
Apply for a personal loan online and get instant disbursal. You can use it to purchase a second-hand bike of your choice.
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 and finance used-car of your choice hassle-free.
Final Word
You can use a ₹20,000 personal loan to meet any immediate financial requirement. With lenders like Navi, getting a ₹20,000 instant loan has never been this easy and hassle-free. So why wait? Download the Navi app and apply for a loan today.
FAQs
Ans. Yes, you can apply and get an urgent personal loan of ₹20,000 with Navi. No lengthy paperwork or extensive documentation required. Just fill out the application process and you will get approval upon satisfying the eligibility criteria. You just need to submit your PAN details to complete your KYC.
Ans: EMI comprises the principal loan amount and the loan interest. The sum of your interest and the principal amount gets divided equally by the overall number of months you will take to repay the loan (repayment tenure). The resulting amount will be paid on a monthly basis to the lender.
Ans: An EMI calculator gives you accurate data within a few seconds. This tool helps you to compare the offers from different lenders and choose the most suitable option. Besides, you can track the difference in the EMI amounts for different repayment schedules and rates of interest.
Ans: Prepayment of a personal loan is a facility provided by lenders that enables a borrower to pay his/her loan amount (interest and outstanding amount) before the loan repayment due date. However, this service requires a specific fee and is applicable after the payment of a few monthly instalments.
Ans: Financial institutions and banks usually offer urgent personal loans without any collateral. If you have strong income proof, decent credit history and a steady relationship with your lender, you can avail of a loan at attractive interest rates.
Ans: A personal loan variable interest rate is a rate that keeps changing throughout the loan tenure. This is due to the periodic revisions in the repo rates by the Reserve Bank of India. A financial entity charges a higher interest rate than the repo rate and computes a borrower’s interest component.
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