20 Lakh Personal Loan in India 2021 - All you need to Know

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.

Features and Benefits of 20 Lakh Loan

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:

Without Collateral: 

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.

Quick Approval: 

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.

Hassle-Free Application: 

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.

Minimal Documentation: 

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.

Quick Disbursal: 

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.

Competitive Rate of Interest: 

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.

Variable Loan Term: 

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.

Easy Eligibility: 

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.

Best Interest Rates For 20 Lakh Personal Loan

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.

How to Calculate 20 Lakh Personal Loan EMI?

Personal loan EMI is calculated using a mathematical formula.

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

Where;

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.

Charges Associated With 20 Lakh Personal Loan

Eligibility Criteria Of 20 Lakh Personal Loan

To be eligible for a 20 lakh loan, the borrower has to meet the following eligibility conditions:

Documents Required For Rs. 20 Lakh Personal Loan

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:

Common Documents for Salaried and Self-employed

•  Two latest coloured Passport size photo of the applicant
• For Identity proof  - Voter ID Card, Passport, Driving License, Aadhaar Card, PAN Card (any one)
• For Address Proof - Ration Card, Voter ID Card, Passport, Driving License, Bank Account Statement, Aadhaar Card, Utility Bill (any one)

Income Documents for Salaried Employees

• One-year bank statement in which salary is credited.
• One year bank statement of account from which existing loan EMIs are debited
• Two year Income Tax Returns
• Two year Form 16
• Latest Salary slip
• Appointment letter

Income Documents for Self-employed individuals

• One year bank statement of Saving Account and Current Account
• One year bank statement of account from which existing loan EMIs are debited
• Two year Income Tax Returns
• Two year Annual Financial Statements like Balance Sheet and Profit and Loss Account
• Latest Financial records

Personal Loan Without Documentation

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. 

How To Apply For 20 Lakh Personal Loan In India?

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. 

How Can Mymoneymantra Assist You to Avail a 20 Lakh Personal loan?

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:

Best collation of information: 

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.

Easy availability of financial tools: 

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.

Best financial advisors:

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.

Customised solutions: 

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.

No cost involved:

 MyMoneyMantra is a free portal. No fee is charged for using and availing of its services. 

Frequently Asked Questions

✅Can I avail Rs. 20 lakh personal loan without documentation?

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.

✅What is the minimum income of a salaried employee to be eligible for a personal loan up to 20 lakh?

Salaried individuals must have a monthly take-home salary of more than Rs. 15,000.

✅ What is the minimum income of a self-employed person to be eligible for a personal loan up to 20 lakh?

Self-employed individuals must have a gross annual income of more than Rs. 5 lakh.

✅Is a credit score required for a personal loan?

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.

✅What is the minimum credit score required for a personal loan?

Lenders take a minimum credit score of 650 points to approve a personal loan.

✅What are the income documents of salaried individuals to get personal loans up to 20 lakh?

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.

✅Will personal loans up to 20 lakh require collateral security?

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.

✅How to calculate 20 lakh personal loan EMI?

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.

✅What is the EMI for a 20 lakh personal loan?

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

✅ How much will a 20 lakh personal loan cost?

Personal loans are repaid in EMIs (equated monthly installments). The lower the EMI value, the lower the cost of the loan.

✅How much personal loan can I get if my salary is Rs.15,000 per month?

You are eligible for a personal loan up to 20 lakh from your existing bank in which you receive your monthly salary credit.