Marriage on cards, child’s education, plans to re-do your space, or simply want to head on to a dream vacation; the desires are endless. But thankfully, a personal loan of up to 20 lakhs can help finance any event. There’s more, using a 20 lakhs loan EMI calculator, you can fix your monthly installment payment and pay back the 20 lakh loan quickly over the years.
The lack of funds is no longer a reason to hold back or cut short your plans. Personal loans up to 20 lakhs can address your immediate financial requirements without much hassle. The features and benefits of a 20 lakh loan are:
A personal loan up to 20 lakhs is an unsecured loan. There is no need to provide collateral security or have a guarantor in place to avail of a 20 lakh loan.
Personal loans up to 20 lakhs are mainly advanced to existing customers of the bank. Thus, they are pre-approved and therefore sanctioned in minutes.
How to get a loan of 20 lakhs? Well, it’s simple and hassle-free. Simply apply online through the official website of the lender.
A personal loan up to 20 lakhs is quickly approved for individuals who have a stable job and regular income with a trustworthy credit history. Thus the need for documentation reduces.
Once approved, the credit for the personal loan up to 20 lakhs can reflect in your savings account in a matter of few minutes. Most lending companies complete the entire personal loan process in less than three days.
Factors like pre-existing relationship with the lender, credit score, existing debt, debt-to-income ratio, income, age, etc. affect the rate of interest at which a 20 lakh loan can be sought. Borrowers can negotiate better and lower rates of interest based on these factors.
Personal loans up to 20 lakhs generally have loan tenure ranging between 1-5 years. The loan term can be decided by the borrower depending upon his repayment capacity.
All salaried employees with a stable job and decent income are eligible for a personal loan up to 20 lakhs. Self-employed individuals have slightly stringent eligibility checks. But existing customers under all categories are eligible for pre-approved personal loans based on current credit score.
The loan has a direct impact due to the rate of interest. It is the cost of the loan. Listed below are the 10 best interest rates available for a personal loan up to 20 lakh in India.
|S.No||Name of Lender||Rate of Interest (p.a.)|
|1||SBI Bank||Starting 9.60%|
|2||HDFC Bank||Starting 10.25%|
|3||IDFC First Bank||Starting 10.49%|
|4||ICICI Bank||Starting 10.5%|
|5||Kotak Mahindra Bank||Starting 10.75%|
|6||Yes Bank||Starting 10.99%|
|7||Tata Capital||Starting 10.99%|
|8||Standard Chartered Bank||Starting 11.49%|
|9||ET Money||Starting 12%|
|10||Bajaj Finserv||Starting 13%|
Personal loan EMI is calculated using a mathematical formula.
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
P = Principal loan amount
R = Rate of interest
N = Loan tenure in months
One can check the 20 lakh personal loan EMI through an EMI calculator. An online EMI calculator gives instant results. One simply has to enter the values for the loan amount, interest rate, and loan tenure. Furthermore, you can calculate EMI on 20 lakh loan for different loan tenures and rates of interest to reach the ideal EMI.
|Name of Lender||ROI (%p.a.)||20 Lakh Loan EMI for one year||20 Lakh Loan EMI for three years||20 Lakh Loan EMI for 5 Years|
|SBI Bank||Starting 9.60%||Rs. 1,75,460||Rs. 64,159||Rs. 42,102|
|HDFC Bank||Starting 10.25%||Rs. 1,76,064||Rs, 64,769||Rs. 42,741|
|IDFC First Bank||Starting 10.49%||Rs. 1,76, 288||Rs. 64,995||Rs. 42,978|
|ICICI Bank||Starting 10.5%||Rs. 1,76,297||Rs. 65,005||Rs. 42,988|
|Kotak Mahindra Bank||Starting 10.75%||Rs. 1,76,530||Rs, 65,241||Rs. 43,236|
|Name of Lender||Processing Fee||Pre-Closure Charge|
|SBI Bank||1.5% of the loan amount plus GST (minimum of Rs. 1000 to a maximum of Rs. 15,000||3% on principal outstanding plus GST|
|HDFC Bank||Min Rs. 999 + GST to Max. Rs. 4719||Nil if pre-closed after 12 months or between 1% - 4% is pre-closed before 12 months|
|IDFC First Bank||Up to 2.50% of loan amount plus GST||Up to 5% of loan amount plus GST|
|ICICI Bank||Up to 2.50% of loan amount plus GST||5% on principal outstanding plus GST|
|Kotak Mahindra Bank||Up to 2.50% of loan amount plus GST|
5% on principal outstanding plus GST after 12 months
4% on principal outstanding plus GST after 24 months
3% on principal outstanding plus GST after 36 months
To be eligible for a 20 lakh loan, the borrower has to meet the following eligibility conditions:
|Age||Between 18-65 years|
|Credit Score||Above 650|
|Income||Salaried Individuals to have a monthly take-home salary not less than Rs. 15,000||Self-employed to have an annual gross income above Rs. 5 lakhs|
|Debt-to-Income Ratio||Between 21% and 35%. Lower the ratio better it is|
Government sector employees are preferred over private-sector employees.
Borrowers must have at least three years of work experience with at least one year with the same employer.
The bank or non-banking lending company will approve the personal loan up to 20 lakh only after the borrower meets the eligibility criteria. Subsequently, documents are verified and found to be authentic. The documents required for the Rs. 20 Lakh Personal Loan are:
Lending institutions offer personal loans without documentation. These are pre-approved loans that are sanctioned only to existing customers after checking their current credit score and relationship with the bank. Thus, pre-approved loans are usually disbursed within minutes. Loyal customers with a good credit history also get the advantage of the lower rate of interest and reduced loan processing charges.
New customers, however, have to deposit the required documents to prove their income and job stability. Their credit score is thus important for loan advancement. Thanks to a well-structured loan application system, new customers also enjoy the personal loan credit in their bank account within three days.
The personal loan application process to avail of a 20 lakh loan in India is well-structured and easy to understand. The steps involved are:
Step 1: Visit the official website of MyMoneyMantra www.mymoneymantra.com or download the app on your Smartphone.
Step 2: Have yourself registered on the portal by providing the requisite details like name, address, income, amount of ongoing loans (if any).
Step 3: Compare and contrast the available loan rates and associated processing charges of different lenders. Shortlist the lending company after having carefully read the features of their Rs.20 lakh loan.
Step 4: Calculate the EMI using the inputs of the principal amount, rate of interest, and loan term to reach the ideal EMI amount that you can comfortably pay every month.
Step 5: Apply for a personal loan up to 20 lakhs for the selected lender through the MyMoneyMantra website. A representative from MyMoneyMantra can assist you in the task.
Step 6: The representative from the bank where you have applied for the personal loan up to 20 lakhs will get in touch with you to process the loan application. Documents will be picked up and verified at this stage. Your credit score will be checked.
Step 7: Once approved, a sanction letter will be issued. This will enlist the terms and conditions of the loan. The loan will be disbursed to your bank account.
Given the intricacies of the loan application process, it is best handled by a pro. MyMoneyMantra is a leader in the field. The online portal collates the information of varied financial products offered by different lending institutions. MyMoneyMantra also offers expert assistance to understand fine points, compare products and pick the best-suited loan deal.
Here are ways in which MyMoneyMantra can help you to apply for a personal loan up to 20 lakh and get approval in a hassle-free manner:
The borrower is no longer required to visit different websites or bank branches. MyMoneyMantra brings together the most comprehensive information about varied financial products offered by different lending institutions, all in one portal.
Financial tools make loan search easy. Prospective borrowers can take an eligibility check or use an inbuilt EMI calculator to calculate 20 lakh personal loan EMI to get a fair idea of monthly financial outflows. This helps in proper budgeting and reduces the risk of defaults.
The in-house team at MyMoneyMantra staffs efficient and knowledgeable financial advisors. They are fully updated with the changing market scenario and thus offer the latest and best financial advice.
The suggestions and recommendations offered by the representatives of MyMoneyMantra are focused on addressing individual needs. Rest assured, the borrower will get the best personal loan deal as per budget and requirement.
MyMoneyMantra is a free portal. No fee is charged for using and availing of its services.
Yes, Rs. 20 lakh personal loans can be availed without documentation. But this facility is available only to existing bank customers. The bank will, however check your current credit score before advancing the loan.
Salaried individuals must have a monthly take-home salary of more than Rs. 15,000.
Self-employed individuals must have a gross annual income of more than Rs. 5 lakh.
Yes, a credit score is important for a personal loan. It helps the lender gauge the creditworthiness of the applicant. It is measured on a scale of 300 to 900. The higher the credit score, the better it is.
Lenders take a minimum credit score of 650 points to approve a personal loan.
Existing customers can avail the advantage of pre-approved loans. Hence, no documentation is required apart from a current credit score.
New customers will be required to provide a 1-year bank statement in which salary is credited, 1-year bank statement of account from which existing loan EMIs are debited, 2-year Income Tax Returns, 2 years Form 16, Latest Salary slip, and appointment letter.
No, personal loans up to 20 lakh do not require collateral security. Personal loans are unsecured loans. No collateral or guarantor is required to avail a personal loan up to 20 lakh. But the applicants must fulfill the eligibility criteria and have a good credit history.
Personal loan EMI is calculated using the mathematical formula
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
(P = Principal loan amount, R = Rate of interest, N = Loan tenure in months). Applicants can use a personal loan EMI calculator available online to find the EMI value corresponding to the input values.
Different lending institutions offer different rates for personal loans. Also, the EMI is dependent on the selected loan term. Five best 20 lakh loan EMI for five years
|Name of Lender|
Rate of Interest
|20 Lakh Loan EMI for 5 Years|
|SBI Bank||9.60% p.a.||Rs. 42,102|
|HDFC Bank||10.25% p.a.||Rs. 42,741|
|IDFC First Bank||10.49% p.a.||Rs. 42,978|
|ICICI Bank||10.50% p.a.||Rs. 42,988|
|Kotak Mahindra Bank||10.75% p.a.||Rs. 43,236|
Personal loans are repaid in EMIs (equated monthly installments). The lower the EMI value, the lower the cost of the loan.
|Name of Lender||Monthly EMI for 5-year loan term||Total Cost of Loan (Interest Component)|
|SBI Bank||Rs. 42,102||Rs 5,26,120|
|HDFC Bank||Rs. 42,741||Rs. 5,64,460|
|IDFC First Bank||Rs. 42,978||Rs. 5,78,680|
|ICICI Bank||Rs. 42,988||Rs. 5,79,280|
|Kotak Mahindra Bank||Rs. 43,236||Rs. 5,94,160|
You are eligible for a personal loan up to 20 lakh from your existing bank in which you receive your monthly salary credit.