Check out our most Popular Searches
Choose The Product You Are Applying For
Check out our most Popular Searches
Choose The Product You Are Applying For
Check Out 10 Lakh Personal Loan EMI for 5 Years
A Personal Loan is a type of loan that a customer can avail to meet their ad-hoc requirements. The loan typically can be taken in scenarios of – buying some product, weddings, purchasing furnishings, medical expenses, etc.
As the loan is unsecured in nature, there is no collateral requirement for it. Personal Loan is disbursed by registered financial institutions as a lump sum in the account of the customer. This is done after the customer meets the basic loan eligibility criteria and assessment of risk as defined by the lender.
In terms of supporting documentation to show that the eligibility criteria are getting met, customers are required to produce some KYC documents when applying for a Personal Loan of 10 Lakh or any amount. The list of documents could include their address proof, identity proof, proof of working and a document of income.
Usually, lending institutions check the credit score and credit history of the customer for any discrepancies and make an offer of a Personal Loan with a fixed interest rate and a defined tenure.
A Personal Loan is generally available in different loan amounts with different tenures, for example, you can avail of a 10 Lakh Personal Loan for 5 years. But whenever you are planning to take the same you should check the repayment schedule of the loan by checking 10 Lakh Personal Loan EMI for 5 years as per your repaying capacity. And to calculate how much EMI you have to pay for a 10 Lakh loan, you need to use digital Personal Loan Calculator available on the internet. This will help you to apply for the best Personal Loan in India with proper planning.
Also Read: What Is FOIR And How Is it Calculated On A Personal Loan?
For a customer with no credit history, there are different risk policies that lending institutions follow to generate a loan offer.
The repayment of the money borrowed is done in easy equal monthly installments, also termed as EMIs. This is the amount that customer pays to the financial institution for taking the loan.
EMIs are worked out with the three variables:
For any loan amount, there is an amortization schedule that lending institutions create, which shows the relationship between EMI payable, interest rates, tenure, interest payable, and principal payable.
A Personal Loan, as the name suggests, is a loan taken for any personal requirement or purpose like taking care of medical expenses, wedding costs, etc. Some of the key features of Personal Loans are listed below:
The availability of Personal Loans encompasses a range of loan amounts and varying durations of repayment periods. For example, one can avail of a Personal Loan from NBFCs like Poonawalla Fincorp for a defined period of up to 5 years. You can also calculate the EMI for a Personal Loan using an EMI calculator. For example, the amount for a Rs.10 Lakh Personal Loan EMI for 5 years at an interest rate of 9.99% will be approximately Rs.21,242.
To become eligible for a Personal Loan of Rs.10 Lakh, a customer must meet certain eligibility criteria. So, while applying for the same, the customer must submit KYC (Know Your Customer) documents, which typically encompass the following
After submission of the above-mentioned details, the lending institution checks your credit score and credit history and makes an offer of a Personal Loan with a certain interest rate accordingly.
To explain a few scenarios on Personal Loans, let us take a few examples-
10 Lakh Personal Loan EMI for various tenures at the interest rate of 15%
The manual calculation of EMI for a 10 Lakh Personal Loan will be as follows:
Principle: Rs 10 Lakh
Rate of interest: 15% i.e., 0.0125 per month
N (Period): 2 years i.e., 24 months
Also Read: 6 Easy Ways To Fast Pay Off Your Personal Loan
The EMI can also be calculated in Microsoft Excel by using a simple formula:
Use the PMT (Rate, NPER, PV, FV, TYPE) formula by selecting any cell
|
EMI Calculation for the loan of 10 Lakhs |
|||||
|
Attribute |
1st |
2nd |
3rd |
4th |
5th |
|
Principal (Rs.) |
10,00,000 |
10,00,000 |
10,00,000 |
10,00,000 |
10,00,000 |
|
Rate per annum |
15% |
15% |
15% |
15% |
15% |
|
Tenure (Months) |
12 |
24 |
36 |
48 |
60 |
|
EMI |
Rs.90,258 |
Rs.48,487 |
Rs.34,665 |
Rs.27,831 |
Rs.23,790 |
From the illustrated table it is apparent that the longer the tenure, the lesser will be the EMI; however, the amount paid will be higher in the form of interest.
It is advisable that the customer should keep the tenure as optimal as possible for a well-balanced Personal Loan. Also, the customer should pay their EMIs on time for avoiding any undue penalties and subsequently an impact on their credit score.
As a Personal Loan is an unsecured loan, it does not require any form of collateral or guarantee, hence it is comparatively at a higher interest rate than other secured loans.
Personal Loans are best suited for unexpected expenses. As these are multi-purpose loans, the customers can use the funds to fulfil their specific goals. Attractive interest rates and the hassle-free process of disbursement make them even more convenient. To secure a Personal Loan effortlessly, ensure that you fulfil the eligibility criteria and submit the required documents with the correct details.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply
Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.
Many times, you may find that your earnings are not enough to meet the urgent expenses. A Personal Loan can help you manage your situation better and save the day!
Collateral-free loan refers to any loan that does not require any asset, security deposit or the backing of a guarantor. These are also called unsecured loans.
We all have multiple needs and goals. However, our financial situation often hinders the path to achieving them all. Thanks to Personal Loans, addressing these needs is possible now.
As per capita income increased in India, people started spending more on cars. If you are planning to take a loan to buy a new car, then you need to approach the lending market for a suitable car loan.
Why do individuals, firms and businesses choose to borrow money from lenders? This is all because we need the money for all the situations.
Yes. You heard it right. You can easily get a car loan to buy a used/second-hand/pre-owned car of your choice. With this loan facility, buying your dream car has become much easier.
