Personal Loan of ₹5 Lakhs

A personal loan of ₹5 Lakhs is a practical choice when you require immediate funds for planned expenses or unforeseen financial needs. With no restrictions on how the money is used, the loan can cover expenses such as weddings, medical treatments, or debt consolidation.

For instance, a ₹5 Lakh loan with a 5-year tenure at an interest rate of 9.99% per annum would result in an approximate EMI of ₹10,621, with a total interest cost of around ₹1,37,263.

Choosing a shorter tenure of 3 years would increase the EMI to ₹16,131 but reduces the total interest payable to about ₹80,724.

This loan type offers quick disbursal, straightforward documentation, and flexible repayment options. You can select an EMI plan that suits your monthly income and repay the loan without impacting your long-term financial goals.

Provided below is a comprehensive list of all lenders that offer a personal loan of ₹5 Lakhs on Bajaj Markets:

Here is a detailed breakdown of the EMI amounts, total interest payable, and total repayment cost for a ₹5 Lakhs personal loan with a 9.99% interest rate across various tenures:

Here is an overview of the fees and charges associated with a ₹5 Lakhs personal loan:

Calculating your personal loan EMI can help you understand your monthly repayment obligation and plan your finances better before applying for the loan. The EMI is calculated using a simple formula:

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

Where:

• P is the principal loan amount

• R is the monthly interest rate (annual interest rate divided by 12 and then divided by 100)

• N is the tenure in months

Let’s break it down using an example:

You want to take a loan of ₹5 Lakhs at an interest rate of 14% p.a. for 5 years (60 months). Here’s how the EMI is calculated:

• P = ₹5,00,000

• Annual Interest Rate = 14%

• Monthly interest rate R = 14% / 12 / 100 = 0.01167

• Tenure N = 60 months

Upon adding the values into the formula:

• EMI = ₹5,00,000 × 0.01167 × (1 + 0.01167)60 / [(1 + 0.01167)60 - 1]

• EMI = ₹5,00,000 × 0.01167 × (1.9729) / (1.9729 - 1)

• EMI = ₹5,000 × 1.9729 / 0.9729

• EMI = ₹10,141

So, for a ₹5 Lakhs personal loan at an interest rate of 14% p.a. and a tenure of 60 months, your monthly EMI would be approximately ₹10,141.

To qualify for a ₹5 Lakh personal loan, you need to meet specific eligibility criteria. Here are a few key points to consider:

1. Be at least 18 years old

2. Applicate should be a salaried or self-employed

3. The income should be at least ₹10,000 per month

4. With a one-year minimum work experience

5. Maintain a CIBIL score of around 750 or higher

You will also need to provide the following documents:

Before applying for a loan, ensure you have all the required documents requested by your lender. Different lenders have different document requirements, so you need to check these carefully in advance.

Here are some simple steps to apply for a ₹5 lakh personal loan:

• Step 1: Click on the ‘Apply for Personal Loan’ option

• Step 2: Enter your basic details in the application form

• Step 3: Choose the loan amount and repayment tenure accordingly

• Step 4: Submit the form for verification

Once submitted, a representative from the lender will contact you and provide further instructions you need to follow in order to proceed.

Here is the monthly amortisation schedule for a ₹5 Lakhs personal loan, showing the EMI amounts, interest payable, and outstanding balance for each month of repayment:

Your CIBIL score plays a significant role in the approval and terms of your ₹5 Lakh personal loan. Personal loans can affect your credit score in several ways, such as:

• Pre-approval Impact

During loan verification, the lender conducts a hard inquiry by examining your full credit report from a credit bureau to assess your credit profile. This process may reduce your credit score slightly, but the effect is generally minimal and short-term.

• Post-approval Impact

Timely repayment of EMIs positively influences your credit score. It demonstrates sound financial behaviour, thereby increasing the likelihood of loan approval in the future.

A ₹5 Lakhs personal loan offers flexibility and can be used for various financial needs, allowing you to manage large expenses efficiently. Here are some common uses:

• Debt Consolidation

You can use the loan to pay off high-interest debts, consolidating them into a single EMI with a potentially lower interest rate.

• Medical Expenses

A ₹5 Lakhs loan can help cover unexpected medical costs, ensuring you have funds readily available during emergencies.

• Home Renovations

You can use the loan for upgrading or renovating your home, which can increase both its value and your living comfort.

• Education

A personal loan can cover tuition fees and other education-related costs, providing financial support for pursuing higher studies.

• Wedding Expenses

If you're planning a wedding, this loan can help finance expenses like venue booking, catering, and attire.

• Travel

A ₹5 Lakhs personal loan can fund your dream vacation, covering everything from flights to accommodation and other travel costs.

• Business Expansion

For business owners, the loan can be used to invest in inventory, staff, or expanding your business operations.

Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.