5 Lakh Personal Loan

The minimum income requirement varies by lender. Usually, salaried individuals require a monthly income of at least Rs 15,000, while self-employed applicants should have an annual income of Rs 3 lakh or more. For higher loan amounts, lenders may set a higher minimum income criterion.

Lenders usually consider applicants having credit scores, usually from CIBIL, of 750 and above as they are viewed as financially disciplined and, thereby, have lower chances of loan defaults. With a low credit score, not all lenders would offer you a loan, especially for Rs 5 lakh. Some NBFCs may offer you a loan of Rs 5 lakh or less, but at a high rate of interest.

The monthly interest or EMI on a Rs 5 lakh personal loan depends on the applicable interest rate and the loan tenure availed. You can use the online Paisabazaar Personal Loan EMI calculator to estimate your EMI based on the chosen interest rate and loan repayment tenure.

You can check your eligibility for a pre-approved or instant personal loan with your current bank/NBFC, or through Paisabazaar. At Paisabazaar, we have pre-approved loans from Axis Bank, Tata Capital, Aditya Birla Capital, IndusInd Bank, etc. Ensure you have a good credit score, valid income proof, and necessary KYC documents. Some lenders offer instant approval and disbursal within 24–48 hours of the application for digital personal loans.

The repayment tenure of personal loans is usually up to 5 years, but some lenders, such as SBI and Bank of Baroda, offer longer tenures of up to 7 years.

You can apply for a personal loan jointly with your spouse to improve your loan eligibility and approval chances. But both of you need to be eligible for the loan and also, the obligation to repay the loan would lie with both co-borrowers.

Most personal loan lenders require a salary slip for a personal loan, especially for higher loans of Rs 5 lakh, to assess the repayment capacity of an applicant. However, if you are an existing customer with a strong credit profile, you may be eligible for a pre-approved personal loan where usually no documentation is required.

The time it takes to get a personal loan varies, but usually, the loan approval process can take 2-3 working days. For pre-approved or instant loans, the disbursement can be quicker, sometimes within a few hours or 1-2 business days.

There’s no such thing as the best bank for a Rs 5 lakh personal loan. For most borrowers, the best lender is one that offers the lowest interest rate, as it reduces the total interest cost. However, factors like loan amount eligibility, processing fees, repayment tenure and approval/disbursal speed should also be considered when choosing the bank for a personal loan that suits your needs.

Most banks and NBFCs offer personal loans to self-employed individuals. You’ll have to submit ITRs, bank statements, and business proof to show income stability and repayment capacity.

Most lenders allow prepayment or foreclosure of personal loans, subject to penalty. The foreclosure fee usually ranges from 2%–5% of the outstanding amount and may require you to complete a minimum lock-in period (usually 6 to 12 months).

Most personal loan lenders require identity proof (Aadhaar card or PAN card), address proof (utility bills, electricity bills), employment proof (offer letter, employment ID), income proof (salary slips, bank statements), and passport-sized photographs.

Missing a personal loan EMI payment can lead to penal charges, EMI bounce charges and a negative impact on your credit score. Repeated defaults can also reduce your chances of getting loans or credit cards in the future. It’s important to inform your lender immediately and explore options like EMI restructuring if you’re facing financial difficulties.