Personal Finance

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Get a Personal Loan of Rs. 5 lakh Online Instantly

Published On Feb/25/2024

How To Get up to 5 Lakh Personal Loan Instantly

In our lives, we incur several expenses, right? While most of these expenses would be planned, some may arise suddenly without any warning. Imagine a situation where you need Rs. 5 lakh immediately to pay the family member’s hospital bill. What would you do? Where would you get the funds from? The best way to get funds immediately is to apply for an instant personal loan.

Apart from paying hospital bills, you can get an instant personal loan of up to 5 lakh and use the funds for any purpose you want, be it going on a vacation, paying college fees, home renovation, etc. The lenders typically do not have any restrictions on how you use the money.

Now that you know what a 5 lakh personal loan is let us know more about its features and benefits, eligibility, documents required and more.

Features and benefits of instant 5 lakh loan

  • 100% online process

Today, with the technological advancements in the lending industry, almost all financial institutions offer online services. You need not visit any branches or wait long hours in the queue. Instead, you can apply for the loan online from the comfort of your home or office with just click of a few buttons.

Also, the online process has allowed lenders to go 100% paperless. This helps save time and gives you a smooth and hassle-free borrowing experience.

  • Quick approval and instant disbursal

As the name suggests, the instant 5 lakh loan is specifically designed to help borrowers get access to funds immediately. With a simple online application process that usually involves a few steps, you get quick approval and instant disbursal. Once the lender sanctions your loan, you get the amount credited to your bank account on the same day.

  • Flexible EMI options

One of the most significant benefits of getting a 5 lakh personal loan is the flexibility to choose the repayment tenure. Typically, it ranges from 12 to 36 months. Thus, you can choose the tenure you want so that the EMI is affordable.

  • Attractive interest rates

Instant loans up to 5 lakh come with an attractive interest rate, which means the EMI is affordable and the repayment becomes easier. However, you must know that the final interest rate levied on your loan would depend on factors like – credit score, income, age, occupation, credit history, etc.

  • No collateral needed

Another significant benefit of getting a personal loan up to 5 lakh is that you need not provide any collateral or security to the lender. It is an unsecured loan, so you need not worry about losing the asset. Also, no collateral makes the borrowing process simple and fast.

  • Minimal documents required

When you apply for any type of loan, you must comply with the documentation and submit certain documents as the lender needs. This may increase the application process. But with an instant personal loan, you must submit only a few basic documents like PAN Card, Aadhar Card and income proof.

Also, you submit a soft copy of the documents online, which allows you to do away with complex paperwork.

Interest rate and other charges involved with instant personal loan

  • Rate of Interest

The interest rate for instant personal loans up to 5 lakh ranges from 14% per annum to 26% per annum. The actual interest rate offered on your loan is subject to your eligibility and verifications done by the lender.

  • Processing fees

When you apply for an instant personal loan, apart from the interest rate, you must also incur processing fees. It is a mandatory charge you pay the lender for processing your application. The processing fee is usually 2% of the loan amount you apply.

Eligibility Criteria for Instant Personal Loan

  • Age – The minimum age limit to get an instant personal loan is 23 years and the maximum age limit is 55 years.
  • Credit score – You must have a credit score of 700+
  • Employment – You must be a salaried employee or self-employed individual with a steady income

Calculating the EMI on Rs. 5 lakh personal loan

Calculating the EMI on your personal loan is easy. You can do it manually using the following formula –

EMI = P × r × (1 + r)n/((1 + r)n – 1)

In the above formula,

P is the principal amount

R is the rate of interest

N is the tenure in months

When you calculate the EMI manually, there is always a risk of human error, which may completely throw off your financial planning. Hence, it is better to use the personal loan EMI calculator. It is an easy-to-use online tool that allows you to compute the EMI instantly.

To know the exact EMI you must pay for your loan, simply enter the details like interest rate, repayment period, and loan amount in the calculator, and the tool will show you accurate results within seconds. It is always advisable to use the EMI calculator to know the exact amount you must repay every month. This helps in planning your repayment accordingly and keep aside a portion of your income towards personal loan repayment.

Also, once you know the exact EMI amount you must pay, you can budget your other expenses accordingly.

Final Word

If you need Rs. 5 lakh urgently for an emergency expense, getting an instant personal loan is the best option at your disposal. You can get the funds immediately without any hassles and the flexi EMI option allows you to repay the amount easily over a period.

However, before you submit your application, make sure to know every detail about the loan, including interest rate, and other charges. Also, calculate the EMI beforehand so that you can plan your finances and repay the amount easily.