Considering the cash requirements and emergencies where you can’t avoid that financial commitment, a personal loan becomes the best component that can help you have a better cash arrangement without any difficulties like lengthy documentation process, collateral, physical document verification and others. A 5 lakh personal loan has similar features that can help you immediately. It is approved by banks or NBFCs based on your income and credit, especially after verifying your repayment capability. So, the personal loan, with its distinct features like instant approval, fast processing, easy repayment, etc, has become one of the best choices for almost everyone, whether a salaried person or self-employed.
What are the types of personal loans?
Before applying for a personal loan, it is essential to get acquainted with the types of loans so that you can apply for the desired amount as per your eligibility. And these are as follows.
Personal loan for long-term
A personal loan for a long term can be ensured based on income, especially when you have to borrow a higher amount, i.e., which is multiple times your salary, and in that case, you can borrow with multiple EMI options. Because the lender verifies your income and approves the amount in that ratio. The tenure becomes longer in that case, so a 5 lakh personal loan can be there as a long-term loan.
Short Term personal loan
Short term personal loan is approved based on the income of the customers, and the loan amount is decided with a ratio such as the loan amount being thirty to forty percent of the salary. Since it is approved for a short tenure, the tenure is short, and it is approved for thirty days. So, the loan amount can vary as per salary.
Features and benefits of a 5 lakh personal loan
Getting a 5 lakh personal loan is beneficial, especially when you have to manage the cash for any emergency. However, there are various factors through which you can ensure all these features while borrowing. The features and benefits of personal loans are as follows.
Instant Approval
The personal loan application is approved in a few hours, especially when you have submitted all the documents and meet all eligibility criteria. However, the approval process starts immediately after submitting your application.
Easy repayment
The repayment becomes easy when you get an affordable tenure like EMIs and other options like salary date. You can choose the repayment date as per your salary date and therefore, it becomes easy and affordable.
Minimal documentation
The documentation process is easy, where you can submit the soft copy of your documents. However, in some cases where physical document verification is required, you can show the physical documents during verification.
No-collateral
The 5 lakh personal loan can be approved based on your income and credit score, and therefore, no need for collateral is there. You can choose a personal loan easily without any collateral. It will help you manage your financial planning.
Multiple usage without restriction
While choosing a 5 lakh personal loan, you will not have any restrictions on the usage of the personal loan. It is available for multiple usage and you can choose it for any financial requirements like household needs.
All-time Accessibility
Its all-time availability always makes it easy to borrow, especially when you are in need. You can apply for the loan at any time without any restrictions. You will be able to choose the loan amount as per your need.
Eligibility Criteria for a 5 lakh personal loan
Before applying for a personal loan, you must check the eligibility criteria, how much you can borrow, what the interest is, what tenure is, income, and eligibility criteria etc. And the eligibility criteria for the 5 lakh personal loan depends on multiple factors and these are as follows.
Age | Must be at least 18 and up to 65 years old |
Income | At least 40000/month. For self-employed, it can depend on the ITR and turnover of business |
Credit Score | Must be above 700 |
Documents | Aadahr, PAN, Salary Slip, utility bills, rent agreement, bank statement, ITR, etc. |
Types of employment | The customer must have a job in a Private Limited company/ Registered company/ government job, etc. Apart from that, a self-employed with good turnover is also eligible |
Nationality | Indian |
How to Apply for 5 Lakh Personal Loan
To apply for a personal loan, you can follow different steps, which will make your borrowing easy. The steps to apply for a personal loan are as follows.
- Go to the website and click Apply Now
- Check the eligibility criteria and terms and conditions
- Enter your loan amount and other details
- Get instant approval on the 5 lakh personal loan
- Receive the amount and use for multiple requirements
- Repay the loan amount as per your tenure
Conclusion
As per the features and benefits, a 5 lakh personal loan is easy to borrow, where you can get the loan for multiple purposes, and therefore, you can check the eligibility criteria before applying. Wherever you are getting the loan without any additional charges and with a flexible tenure, you can apply. It is easy to get the approval and disbursal shortly. However, before sending the application form, you must be sure about the loan amount and your eligibility, especially based on your income.
FAQs About 5 Lakh Personal Loan
Anyone, whether a salaried person or self-employed, is eligible for the personal loan, especially those having a good income and credit score. For more details, you can check the eligibility criteria.
It will be fixed while approving your loan amount, and you can get the 5 lakh personal loan with a longer tenure. However, it depends on the lender’s policy.
No, generally, for a personal loan, it is not required, especially when you are eligible for the personal loan. But, when you are going to borrow for such terms and conditions, such as a loan against property.
It is disbursed shortly, especially when you have got the approval and your documents have been verified. In that case, the loan amount can be disbursed shortly.
Yes, it is free from any restrictions, where you can get a personal loan for multiple usage; however, while applying for a personal loan, you might have to fill the purpose of borrowing loan.
Disclaimer
This blog is for informational purposes only and does not constitute financial advice or a loan offer. Loan approval is subject to eligibility criteria and terms and conditions set. Please review official guidelines and policies before applying for a loan.
