₹1 Lakh Personal Loan

A ₹1 Lakh personal loan offers convenient financial assistance for those who need immediate funds or are making substantial purchases. This form of credit has no restrictions on end use and allows you to manage medical emergencies, holidays, education expenses, or home repairs, without pledging any assets. 

As an example, a ₹1 Lakh loan for a tenure of 3 years at 10% interest per annum results in an EMI of nearly ₹3,226. Over the loan tenure, you incur an interest of approximately ₹16,161. 

Alternatively, opting for a shorter tenure of 1 year increases the EMI to about ₹8,791 but keeps the total interest low at ₹5,499. 

Personal loans also offer the benefit of flexible repayment terms. You can choose a tenure and EMIs that suit your financial means. With minimal documentation and quick processing, you can get timely access to funds to manage both planned and unexpected expenses. 

Several lending partners on Bajaj Markets offer personal loans of ₹1 Lakh at competitive interest rates and with flexible repayment options. Compare multiple lenders, review their loan terms, and select the offer that best aligns with your financial requirements. 

If you take a loan of ₹1 Lakh, for instance, at an interest rate of 10% p.a., your EMI, total interest, and overall repayment amount will vary based on the chosen tenure. The table below provides a detailed breakdown of different repayment periods.

There are additional charges you may need to pay along with the principal and added interest. The details are provided below.

Here is how you can calculate your Personal Loan EMI manually:

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

Where:

• P = Principal loan amount

• R = Monthly interest rate

• N = Loan tenure in months

Consider the following example.

You have taken an instant personal loan of ₹1 Lakh from Bajaj Markets. Consider the interest rate as 10% p.a. and the loan tenure of 60 months. Using the formula, the EMI will be ₹2,124. The total interest will be ₹27,482, and the total amount payable will be ₹1,27,482.

Before getting a personal loan of ₹1 Lakh, it is essential to verify that you fulfil the lender's minimum eligibility. These requirements ensure your repayment ability and chances of loan approval. Fulfilling these requirements makes the application process simpler and increases the chance of loan approval. 

• You should be an Indian citizen 

• You should be salaried or self-employed 

• Your minimum age limit must be 18 years or older 

• You must have a minimum monthly income of ₹10,000  

• You must have a minimum of 1 year of work experience 

• CIBIL score should be 750 or more 

To apply for a personal loan of ₹1 Lakh successfully, you will need to provide some valid documents. These documents assist lenders in determining your eligibility and repayment capability. They include: 

Identity Proof (any one of the following): 

• PAN card

• Aadhaar card

• Voter ID

• Passport

• Driving licence

Address Proof (any one of the following):

• Voter ID

• Aadhaar card

• Passport

• Driving licence

• Electricity bill

• Telephone bill

Income Proof (any one of the following):

• Bank statement

• Salary slips of the last 3 months

Please note that these document requirements can differ from lender to lender. So, it is best to check the precise list with your selected financial institution before applying.

Here are the steps you can follow to apply for a personal loan online.

• Click on ‘Apply for a personal loan’

• Enter your basic personal details

• Enter your preferred loan amount and tenure 

• Submit your application form 

Soon after, a representative will reach out to you to complete the process.

The following table presents the breakdown of EMI payments for a ₹1 Lakh loan at 10% per annum over a 6-month tenure. As the tenure progresses, the interest component declines, while a greater portion is allocated toward repaying the principal, leading to a gradual reduction in the outstanding balance.

Your CIBIL score, ranging from 300 to 900, reflects your creditworthiness and financial reliability. Here is how a personal loan can impact your score:

• Pre-Approval Impact

When you apply for a personal loan, the lender conducts a hard inquiry on your credit report. This inquiry is documented and may result in a temporary decrease in your credit score. The number of applications also impacts your score.

• Post-repayment Impact

Making timely repayments improves your credit score by demonstrating responsible debt management. Consistent payments strengthen your credit profile, increasing the likelihood of securing future credit on more favourable terms.

A personal loan of up to ₹1 Lakh can help you manage various expenses, whether urgent or planned. Here is how you can use it:

• Medical Bills

Medical emergencies may arise unexpectedly, requiring immediate funds for hospital bills, doctor’s fees, and medicines. When health insurance is insufficient, a personal loan can offer prompt financial assistance, ensuring necessary medical care without placing strain on your savings.

• Home Renovation

Upgrading your home, repainting walls, or addressing structural damage can involve high expenses. A personal loan allows homeowners to cover renovation costs without disrupting their budget. It also helps enhance property value and improves the overall living environment effectively.

• Debt Consolidation

Managing several high-interest loans can be challenging. A personal loan of ₹1 Lakh enables you to combine them into a single EMI, making repayment more streamlined and reducing interest expenses. This supports better financial planning and helps prevent missed payments.

• Unexpected Expenses

Unplanned costs such as car repairs, appliance breakdowns, or urgent household fixes can be overwhelming. A personal loan offers quick access to funds for addressing these issues without impacting savings. This promotes financial stability and the timely resolution of critical needs.

• Large Purchases

Purchasing essential items such as furniture, electronics, or home appliances often involves significant spending. Personal loans make these purchases immediately possible with repayment through convenient EMIs. This allows you to secure what is needed without delays or compromise.

• Travel

Planning a holiday requires funding for flights, accommodation, local travel, and shopping. A personal loan supports these expenses without disrupting your savings. It enables you to experience your trip while repaying the amount in structured EMIs without added financial pressure.

• Moving Costs

Relocating to a new residence or city involves costs like hiring movers, transportation, and deposits. A personal loan of ₹1 Lakh can cover these expenses, ensuring a seamless transition without financial stress. This makes the process of shifting more efficient and manageable.