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Planning to take a Rs 5 lakh personal loan? Instead of checking with multiple lenders separately, you can use Paisabazaar to explore loan options from top banks/NBFCs like Axis Bank, HDFC Bank and 30+ others.

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Updated: 25-06-2025 05:45:09 AM

Compare Rs 5 Lakh Personal Loan Offers from Top Banks & NBFCs on Paisabazaar

HDFC Bank

Up to ₹40L

10.9% - 24%

Upto 6 Years

₹6,500

10 Second Disbursal* 100% Digital Process* Quick Disbursal

Axis Bank

Up to ₹10L

10.49% - 22%

Upto 6 Years

Upto 2%

Low Processing fee

Kotak Mahindra Bank

Up to ₹35L

10.99% - 16.9%

Upto 6 Years

Upto 5%

Lowest Income requirement 100% Digital Process*

IDFC FIRST Bank

Up to ₹10L

10.7% - 23.99%

Upto 5 Years

Upto 2%

Max Loan Amount 100% Digital Process*

ICICI Bank

Up to ₹50L

10.8% - 16.5%

1-6 Years

Upto 2%

100% Digital Process* Quick Disbursal

 

First, if you’re planning for any kind of loan, you must compare all offers available to you and choose the best and most-suited one.

It’s important to check eligibility, understand the EMI structure, along with fees and charges to make a more informed decision before you finalise your application.

Quick Summary for Rs 5 Lakh Loan

Loan Amount: Rs 5 Lakh
Tenure: 1–5 years (up to 7 years in some cases)
Interest Rate Usually starting from 10.50% p.a.; depending on the applicant’s credit profile
EMI (Approx): Rs 10,747 for (5 years @10.50% p.a.)
Processing Fee: 0.5% to 4% of the loan amount

At Paisabazaar, you can see, compare and apply for the best personal loan offers from India’s top lenders like HDFC Bank, ICICI Bank, Axis Bank, IDFC FIRST Bank, Kotak Mahindra Bank, IndusInd Bank, Tata Capital, etc.

We have seamless digital processes and also, experts who would assist you through the entire process if you need help or have concerns, ensuring a happy and hassle-free experience.

Why Choose Paisabazaar for Rs 5 Lakh Personal Loan

  • Compare offers from multiple banks and NBFCs in one place.
  • Get access to pre-approved offers with minimal documentation.
  • Free credit score check before applying.
  • Comparing and checking loan offers through Paisabazaar does not affect your credit score as it is considered a soft inquiry.
  • Get help from loan experts to choose the right lender and loan terms based on your profile.

 

How do I apply for a Rs 5 Lakh Personal Loan at Paisabazaar?

Here’s a step by step guide for applying for a Rs 5 lakh personal loan at Paisabazaar:-

Step 1: Visit Paisabazaar on web or app

Step 2: Enter your mobile number in the application form

Step 3: Fill in your personal details

Step 4: Enter OTP to verify your mobile number

Step 5: Select the loan amount and loan purpose

Step 6: Check and compare the available offers from multiple banks and NBFCs and apply for the best-suited personal loan

Use Paisabazaar’s EMI Calculator to Estimate Your Rs 5 Lakh Loan EMI

Personal Loan EMI Calculator
₹
%
Year(s)
Personal Loan EMI Calculator

Monthly EMI ₹ 15,622

Total Amount Payble ₹ 5,62,395(Principal + interest)

Principal Amount ₹ 5,00,000

Total Interest Payble ₹ 62,395

 

What is the EMI for a 5 lakh Personal Loan

Have a look at the EMI for a Rs 5 lakh loan at 11.00% p.a. interest for different tenures:

Tenure EMI Total Interest Total Payable
1 year Rs 44,191 Rs 30,290 Rs 5,30,290
2 years Rs 23,304 Rs 59,294 Rs 5,59,294
3 years Rs 16,369 Rs 89,297 Rs 5,89,297
4 years Rs 12,923 Rs 1,20,293 Rs 6,20,293
5 years Rs 10,871 Rs 1,52,273 Rs 6,52,273

Lower EMI or Lower Interest Cost?

As the loan tenure increases, the EMI decreases, making repayment more manageable. For instance, EMI decreases from Rs 44,191 (1-year tenure) to Rs 10,871 (5-year tenure). While longer tenures lower your EMI, they significantly increase the total interest paid. For a 5-year loan tenure, you end up paying Rs 1.52 lakh as interest – more than 5 times the interest paid on a 1-year loan tenure (Rs 30,290). This is because interest is compounded over a longer period.

How To Choose Optimum Tenure

Borrowers with adequate repayment capacity can opt for shorter tenures to save on interest, while those with limited repayment capacity can choose longer tenures and prepay when they have surplus funds. However, prepayments should not come at the cost of essential financial goals and monthly contributions. Some lenders may require borrowers to repay a predetermined number of EMIs before allowing prepayments or foreclosures. Thus, one should carefully compare the prepayment fees and prepayment-related restrictions of multiple lenders. Note that floating rate loans have no prepayment penalties.

How to get a Rs 5 Lakh Personal Loan Instantly

You can access a personal loan of Rs 5 lakhs seamlessly, through pre-approved loan offers. Most lenders provide pre-approved personal loans or instant loan offers to select customers with a strong credit history. These loans are processed digitally and are often disbursed within minutes. For example, HDFC Bank offers instant loan disbursal of up to Rs 40 lakhs in 10 seconds for its eligible customers.

Latest Interest Rates on Rs 5 Lakh Personal Loan (2025)

The personal loan interest rates usually start from 10.50% p.a. onwards with some public sector banks offering lower interest rates, usually to their own customers. The final interest rate will depend on the risk-based pricing models followed by the lender and the credit profile of the applicant. If you have an existing relationship with a public sector bank, do check if it has any personal loan offer for you, as it may come with a lower rate of interest.

 

Mistakes to Avoid When Borrowing Rs 5 Lakh

  • Not Comparing Interest Rates – Always compare offers from multiple banks/NBFCs.
  • Ignoring Total Cost – Also focus on processing fees, prepayment charges, and insurance costs, not just the interest rate.
  • Borrowing More Than Needed – Borrow based on your financial requirements and repayment capacity.
  • Choosing a Long Tenure Blindly – Longer tenure reduces EMI but increases total interest cost which makes a personal loan expensive even though availed at a lower interest rate.
  • Not Checking Credit Score – A low score can lead to higher rates or rejection.
  • Missing Fine Print – Skipping terms & conditions can lead to hidden charges.
  • Delaying EMI Payments – Impacts credit score, attracts penalties and reduces the eligibility for future loans or credit cards.

Know the Fees and Charges on Rs 5 Lakh Personal Loans

Below are the range of some personal loan fees and charges charged by various lenders:

Types of Charges Charges
Processing Fees 0.5% to 4% of the loan amount
Stamp Duty Charges As per actuals
EMI/Cheque Bounce Around Rs 400 per bounce
Prepayment and Foreclosure Charges 1%-5% of the outstanding loan amount
Legal Fees As per actuals
Late Payment Penalty 1%-2% p.a. on the EMI overdue amount

Other fees and charges levied by most banks and NBFCs include verification charges, documentation charges, NOC certificate charges, cheque/ECS swap charges and duplicate statement charges.

Rs 5 Lakh Personal Loan Eligibility Criteria

The eligibility criteria for a Rs 5 lakh personal loan vary depending on the lender’s credit risk policies, loan type, and the applicant’s occupation. Below are the general personal loan eligibility criteria considered by most lenders before loan approval:

  • Age: 18 to 60 years.
  • Credit Score: Usually 750 or higher, as a higher credit score increases the chances of loan application approval.
  • Income: Usually lenders need a minimum in-hand monthly income of Rs 15000 for any personal loan. But, if you need a Rs 5 lakh personal loan, some lenders may have a higher income eligibility criterion.
  • Business Continuity: Usually 3 years of continuous business operation, though some lenders may require a longer duration.
  • Employment Type: Salaried employees working in government, public sector undertakings, MNCs, or reputed corporates.
  • Employment Stability: Usually minimum 1 year with some banks/NBFCs requiring more work experience.

Documents Needed for Rs 5 Lakh Personal Loan Application

The following are the general personal loan documents required by most lenders:

  • Identity Proof: Aadhaar Card/PAN Card/Passport/Voter ID
  • Address Proof: Aadhaar/Electricity Bill/Passport
  • Income Proof: Salary slips (last 3 months) or ITR for self-employed
  • Bank Statement: Last 6 months

 

FAQs on Rs 5 Lakh Personal Loan

How to get a Rs 5 lakh personal loan?

Applicants can reach out to banks and NBFCs or apply through Paisabazaar.com. These platforms allow applicants to compare the interest rates and other personal loan features offered by multiple banks/NBFCs and choose the best personal loan option available based on their credit score, monthly income, employment profile, etc.

What is the interest rate for Rs 5 lakh personal loan?

Lenders usually offer personal loan at interest rates starting from 10.50% p.a., depending on the credit profile of their loan applicants. However, some public sector banks offer personal loans at lower interest rates.

How much salary is required for a Rs 5 lakh personal loan?

Lenders usually require a minimum net monthly income of Rs 15,000 for personal loans. However, for higher loan amounts, some banks/NBFCs may set a higher minimum income criterion.

What is the EMI for a 5 lakh personal loan for 2 years?

The EMI of a personal loan also depends on the interest rate offered by the lender. Considering you availed a personal loan of Rs 5 lakh at an interest rate of 11% p.a. for a tenure of 2 years, the EMI would be approximately Rs 23,304 and the total interest payable would be Rs 59,294.

What is the EMI for a 5 lakh personal loan for 5 years?

The EMI for a Rs 5 lakh personal loan for 5 years at an interest rate of 11.50% p.a. (for example) would be Rs 10,996.

What is the minimum income for a Rs 5 lakh 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.

Is a CIBIL score of 650 enough for a Rs 5 lakh personal loan?

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.

What is the monthly interest on a Rs 5 lakh loan?

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.

How to get Rs 5 lakh Loan immediately?

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.

What is the maximum repayment tenure for a Rs 5 Lakh personal loan?

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.

Can I apply for a personal loan jointly with my spouse?

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.

Can I get a Rs 5 lakh personal loan without a salary slip?

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 anexisting customer with a strong credit profile, you may be eligible for a pre-approved personal loan where usually no documentation is required.

How long does it take to get a Rs 5 lakh personal loan?

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.

Which bank is best for a Rs 5 lakh Personal Loan?

There’s no such called 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.

Is Rs 5 Lakh Personal Loan available for self-employed?

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.

Can I prepay or foreclose my Rs 5 Lakh loan early?

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

Which documents are required for a Rs 5 lakh personal loan application?

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

What happens if I miss an EMI payment on my personal loan?

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.

Bhumika Khandelwal
Bhumika Khandelwal is a content writer who covers Fixed Deposit, Personal loan and other lending products at Paisabazaar.com. In her free time, she loves reading books, writing motivational stuffs and has keen interest in learning magic tricks.

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