A personal loan allows you to easily access a high quantum of funds without pledging any collateral and meet any expenses hassle-free. This means that, be it your wedding expenses or paying off your debts of credit cards, you can apply for a personal loan and meet the financial requirements.
So, if you are eager to avail a personal loan, say of an amount of Rs. 10 lakh or above, then you must know the process to get it. You also need the details about how much you need to pay on EMI for a personal loan of Rs. 10 lakh.
Eligibility Criteria to Qualify for Rs. 10 Lakh Personal Loan
Whether you apply for a personal loan of Rs. 20 lakhor Rs. 10 lakh, you must fulfil certain eligibility criteria to avail the funds.
However, note that eligibility parameters may differ with each financial institution. Therefore, for your convenience, the list below mentions some common criteria that most lenders demand from a borrower:
- Should be an Indian citizen.
- Must fall between the age group of 21 to 65 years.
- Should be a salaried employee, be it in the private or public sector or self-employed, with at least 1-year experience in running a business.
- Minimum monthly earnings should be Rs. 15,000.
- Should have a CIBIL score of 750 or above.
Steps to Apply for Rs. 10 Lakh Personal Loan
Follow the step-wise guide to avail a personal loan for students of Rs. 10 lakh from a financial institution:
Online Process
Step 1: Visit the website or log in to the mobile application of the bank of your choice. Before selecting a bank, make sure you compare interest rates and EMI for a personal loan of Rs. 10 lakhof different financial institutions to make an informed choice.
Step 2: Now, select ‘Apply for Personal Loan’ and enter the required details in the application form.
Step 3: Submit all the appropriate documents along with the application form.
Step 4: Pay the processing fees or other charges, if any.
After you submit your application, a bank representative will contact you to proceed with the subsequent steps.
Documents to Submit While Applying for Rs. 10 Lakh Personal Loan
Submit the documents mentioned below while applying for a personal loan of Rs. 10 lakh:
- Identity proof such as Aadhaar card and PAN card
- Address proof such as electricity bill, passport, and ration card
- Form 16 or ITR form of the previous fiscal year
- Last 6 months’ bank account statements
- If you are a salaried employee, submit your salary slips of the past 3 months.
- If you are a self-employed applicant, submit either a TDS certificate (Form 16A), Form 26AS, or an Income Tax challan to reveal the income tax of your business.
- You need to submit ITR returns for the last 2 fiscal years and documents to prove business origination if you are self-employed.
EMI Calculation Process for a Personal Loan of Rs. 10 Lakh
Once you apply for a personal loan app, it is essential to determine the EMI amount to be payable towards your personal loan beforehand. This will assist you in planning and managing your finances effectively and repaying the loan amount without any inconvenience.
Your EMI for a personal loan of Rs. 10 lakhwill depend on the interest rate charged by the lender and the repayment tenure. You can calculate the EMI amount by using the following formula –
P x R x (1+R)^N / [(1+R)^N-1]
Where,
P is the principal amount
R is the interest rate
N is the number of instalments
So suppose you have availed a loan of Rs. 10 lakh for a repayment tenure of 3 years and at an interest rate of 13% (per annum), then the EMI amount will be-
10,00,000x13x(1+13) ^3[1+13) ^3-1] = Rs. 33,694 (per month)
Note that this is an approximate calculation of the EMI amount, and the actual amount may vary.
If you find manual calculation difficult, you can use an online tool like the personal loan EMI calculator offered by leading financial institutions. All you need to do is enter a few basic details such as loan amount, interest rate and tenure to get results in a few minutes.
Thus, follow all the steps mentioned above to get a personal loan of Rs. 10 lakh and meet your monetary obligations easily. Besides, check the EMI for a personal loan of Rs. 10 lakh beforehand to plan your finances accordingly.