The need for funds can manifest itself in several ways. You may need it for medical emergencies, for a wedding, home renovation, vacation, etc. Several private banks and other lenders conveniently fulfil the need for personal loans that help finance these urgent monetary needs. For example, if you need a Rs. 5 lakh personal loan, you can simply avail of it by meeting the minimum eligibility and documentation requirements.
Note the 5 Lakhs Personal Loan Eligibility
To get a personal loan of up to 5 lakhs, you must meet some basic eligibility criteria as shown below:
- Age: Anyone above 21 and under 65 can apply for a personal loan of up to 5 lakhs.
- Employment – Most lenders offer personal loans to salaried people only because their income is more stable. However, it is still possible to find some banks and financial institutions that offer 5 lakh loans even for self-employed people.
- Income – For salaried workers, the minimum monthly wage is generally Rs. 25,000. Self-employed persons must present an annual income of Rs. 5 lakhs to be eligible for a personal loan.
- CIBIL Score – Your CIBIL rating determines your loan eligibility and helps banks decide on your loan approval. Typically, banks look for a minimum CIBIL score of around 750 for loan approval.
However, banks allow personal loans to people with a CIBIL score of 700 or higher. The higher the CIBIL score, the greater the chance that the loan will be approved. Other eligibility criteria for a 5 lakhs personal loan include age, income, KYC, employment details, company details. These criteria may vary from one lender to another.
How Can You Apply For A 5 Lakh Personal Loan?
If you are in urgent need of a loan of 5 lakh, you have to follow the procedure described below:
- Complete your application: The application form can be completed, signed, and submitted online. Make sure you have submitted all personal, business, and financial details accurately, to the best of your knowledge.
- Upload all the required documents: Once the documentation and eligibility criteria have been verified by the lender, you can proceed to upload documents. This can be done entirely online
- Loan disbursement: When your request is received by your lender, a representative of the relevant department will contact you within a specified time. You can discuss options on how to get a Rs. 5 lakh personal loan at the best interest rates, with a convenient repayment term and easy installments.
The approval process typically takes 24 to 72 hours. Your Rs. 5 lakh personal loan will be transferred to your registered bank account within 24 business hours after approval.
How Can A 5 Lakh Personal Loan Benefit You?
5,000,000 personal loans can be used for various purposes. Some of these include:
- Travel: If traveling is your dream, you can apply for a personal loan. Personal loans can be used for vacation-related expenses including airline tickets, accommodation, local transportation, tour activities, etc.
- Marriage: Weddings in India can be very expensive and it is not easy for ordinary people to organize such funds immediately. Personal loans can be used to cover wedding-related expenses such as room reservations, gifts, shopping, jewellery purchases, catering, etc.
- Home improvement: Personal loans can be used for expenses related to home improvement such as painting, minor repairs, renovations, purchasing appliances, etc. A personal loan of 5 Lakh is usually sufficient to meet these needs.
- Balance transfer: Most banks and NBFCs offer the option of transferring a high-interest personal loan from another lender to their institutions at a lower interest rate. These balance transfers help borrowers by reducing the interest rate or the term of the loan.
- Debt Consolidation: Debt consolidation allows you to consolidate all obligations (existing loans and credit card dues) into a single loan.
- Medical emergency: Personal loans are a good option to deal with unforeseen medical emergencies. Medical emergencies can cost a fortune and you may not have huge insurance coverage. This is where a personal loan comes in handy.
Understand your 5 lakhs personal loan eligibility and pay close attention to the points covered in this article to make a smart decision. Select a reputable bank if you want to proceed with the loan to enjoy the convenience and benefits.