Personal Loan of ₹25 Lakh

Personal loans have become a common type of loan people take to fulfil their personal liabilities. If you have been planning to get a personal loan of ₹25 Lakhs, then you can easily apply for it online and get it in a matter of days. Usually, the personal loan demands an interest rate which starts from 9.99% p.a. The tenure can be as long as five years or more. Each lender can have different eligibility criteria; however, they have a few common factors on which loan applications are evaluated, e.g., credit score, monthly income, EMI to NMI ratio, the nature of the job, employer’s profile, etc.

Disclaimer: The rates mentioned above are subject to constant change. You must always check with the lender before applying. Additionally, the final interest rate applicable to you will depend on factors such as your repayment tenure, your age, your monthly income, and your CIBIL score.

A ₹25 Lakh loan can help you in many different ways. This amount will allow you to meet your financial emergencies, which can include the following:

• Home renovation, repair, and carrying out expensive structural replacements.

• Higher education — foreign studies or paying for high-fee domestic education.

• Wedding expenses and other related ceremonies.

• Medical emergencies or long-term treatment costs due to severe illnesses, etc.

Other than these, personal loans can help you in times of cash crunch. Without needing collateral such as property or gold, you can apply for loans and repay the same in easy instalments. The loan would be available for different tenures at affordable rates of interest.

Here are the eligibility details evaluated by most lenders:

• Minimum age:

Most lenders offer personal loans to people who are aged more than 21 years and less than 67 years.

• Monthly Income:

The first and the most important determinant in seeking a ₹25 Lakh personal loan is your monthly income. In most cases, lenders are fine to provide a personal loan to loan applicants who have a monthly income of more than ₹25,000. However, this figure may change with banks and NBFCs. While some banks or lenders have a higher minimum monthly income criterion, others may offer loans to applicants with lower monthly income too.

• Nature of Job:

The nature of the job or job profile is another determinant that is seen at the time of approving a personal loan. The amount of ₹25 Lakh as a personal loan can usually be provided to salaried people as well as self-employed individuals. The loan applicants who are found to be working in one of the leading and top private companies are given quick loan approvals.

• The ratio of EMI to NMI:

Next on the list is the average ratio of EMI to NMI (net monthly income). The loan applicant needs to declare all their ongoing loans. At the time of calculating personal loans up to ₹25 Lakhs, banks consider the current EMIs of the loan applicants. Most lenders offer personal loans to applicants who have an EMI to NMI ratio of around 50% to 55%.

• Credit Score:

Lastly, you would have heard about the credit score requirement for loan applicants. A credit score is an important determinant that assesses the credibility of the loan applicant. A score of more than 750 denotes that the applicant will pay the dues on time. Most applicants with this score (or higher) not just qualify for the loan but also get lower interest rates.

Here is the step-by-step guide for you to apply for a ₹25 Lakh personal loan:

• Open the online application form and fill it out correctly.

• Enter your name, date of birth, PAN, etc.

• Enter your mobile number and receive the OTP

• Enter the loan amount and term.

• Click on proceed.

• Complete the KYC and click on submit.

1. Here is the list of documents needed for a personal loan up to ₹25 Lakhs. The documents that the Salaried class needs to furnish to get a personal loan are:

• One of the ID proofs such as a PAN card/Aadhar card/DL

• Address proof

• Signature proof

• Bank statements. This is needed for the last 6 months

• The applicant also needs to provide salary slips for the last 3 months

• ITR or the Form 16

2. The documents that the self-employed person needs to furnish to get ₹25 Lakh personal loan are:

• The proof of doing a business

• Form 26 AS

• Income Tax Challan or TDS certificate also called Form 16A.

• ITR is needed to be submitted. This is needed for the last 2 years.

• The person also needs to submit the last 2 years’ P&L account details, balance sheet details, and income computation.