How to get a personal loan for ₹1 lakh: Interest rates and eligibility explained | Mint

To finance significant expenses or unexpected expenses, short-term funds are required. For any reason-for debt consolidation and home improvement to a medical emergency, a ₹1 lakh personal loan is a great bet. All you need to know about a personal loan-from eligibility criteria to documentation requirements, interest rates, and tips to choose the best lender-is here in this article.

Personal loans

A personal loan is an unsecured loan that does not require any collateral, such as your house or vehicle. It is quite flexible in its use and can be applied to a variety of situations, including crises, travel, schooling, or any other individual financial need.

Eligibility criteria on 1 lakh personal loan

To be eligible for a personal loan, you must fulfil the following requirements:

How to apply for a 1 lakh personal loan?

1. Give your details: Fill an application with your financial and personal information.
2. Submit documents: Do it in person or online.
3. Verification: The lender shall verify the information from your application in the course of approval process.
4. Loan processing: The amount is directly deposited to your account within a few working hours once approved.

Factors affecting personal loan interest rate

Factors the lending institution decides to use when determining interest rates include:

In conclusion, it is very easy to obtain a personal loan of ₹1 lakh if you are able to get the right lender and if you qualify under their criteria. However, despite immediate financial assistance offered by personal loans, their interest rates are always higher compared to secured loans. So it becomes crucial that your credit score doesn’t come down due to unavailability of sufficient money or payment at the wrong time.

(Note: Personal loan interest rates and other provisions keep changing with time. Readers are advised to check the relevant bank’s official website for the latest updates.)