A 20 lakh personal loan could be an option of choice when there is an immediate need for cash to cover substantial financial obligations, such as the renovation of a home, tuition fees, or consolidation of debt. But it is equally important to know some of the finer details regarding terms and conditions, eligibility parameters, and repayment types before delving into the loan application itself.

What Is a Personal Loan Of 20 Lakhs?

A personal loan of 20 lakhs is one without security. It means you do not have to pledge any items as collateral on such loans. Banks and other financial institutions disburse these gigantic loans to eligible borrowers with their set criteria. You may use the loan for a wedding, hospital bills, or even the expansion of a business.

How to Get a 20 Lakh Personal Loan?

The procedure of getting a 20-lakh personal loan is simple and requires following a few fundamental steps in order to get any chance of approval:

Check Your Eligibility: Banks require a good credit rating (above 750) and primarily have stable income sources for some specified time. The deciding authority for loans to bank/financial institutions varies from one lender to another.

Choose the Right Lender: There are various banks and financial institutions that offer personal loans. However, ideally, one should compare their interest rates, processing fees, and repayment terms. Leading lenders across India are SBI, HDFC, ICICI, and Bajaj Finserv.

Online Or Offline Application: Most lenders offer online application procedures based on the personal loan, thus creating convenience for borrowers applying. Fill out the right application form with the required documents, such as ID proof, income proof, and address proof.

Document Submission: Upon completion of this application, they will call you for submitting relevant verification documents that include the latest salary slip, last six months bank statement, PAN card, and Aadhar card.

Loan Approval and Disbursement: Acceptance of the application followed by a preliminary assessment forms the ground for grant of loan approval; finally, this amount shall convert into cash in your bank account within a maximum of 3 days.

20 Lakhs Personal Loan EMI

One of the major aspects is the 20 lacs EMI (Equated Monthly Installment) for personal loans. The EMI intricacies depend on loan amount, tenure, and interest rate.

Interest Rate: Interest rates on a personal loan of 20 lacs may vary between 10% and 15% per annum, depending upon the applicant’s creditworthiness and that of the lender.

Tenure: Typically, the tenure for repayment would be from 1 to 5 years. A longer tenure gives you a lower EMI, but consequently a higher interest paid over the entire life of the loan.

A personal loan of 20 lacs at an interest rate of 12% for a 5-year term will attract an EMI of roughly INR 44,500. However, lesser would be the interest paid if the tenure were lesser, say 2 years, as the EMIs will go up.

Factors To Consider Before Processing 20 Lacs Loan

Interest Rates: Compare the interest rates quoted by various lenders. A lower rate will impact your monthly EMI the most.

Processing Fees: Lending institutions charge a processing fee for personal loan approvals, typically ranging between 1-3% of the loan amount.

Prepayment Charges/Foreclosure Chargers: Before going for a loan, confirm if prepayments or foreclosure is permitted by the lender, with applicable charges therein.

Eligibility Criteria: Make sure you comply with the eligibility requirements specified by the lender. A good credit score and a steady income help your cause.

Conclusion

A personal loan of 20 lacs becomes a financial rescue package for many people, but it is vital to understand the terms and conditions fully before taking a step. Assessment of repayment and computation of his 20-lacs personal loan EMI would aid the individual in relieving any future financial crunch. With the right lending company, this loan will bring you the funds to pursue your dreams and provide the flexibility to repay later.