How to Manage EMI for a 5 Lakh Personal Loan?
A financial emergency could come up at any time. Currently, a personal loan is the best way to get credit. If you need a short-term personal loan EMI of up to Rs. 5 lakhs quickly, there is no need to fill out enormous paperwork.
Personal loans aren’t backed by collateral, and you can get them online with low-interest rates to take care of various financial needs quickly.
Qualifications Required for a Personal Loan EMI
- A personal loan EMI up to Rs. 5 lakhs can be taken out by anyone over 21 and under 65.
- Usually, only salaried people can get personal loans due to income stability. But some banks and financial institutions loan to those who are unemployed or self-employed as well.
- The minimum salary for salaried workers should be Rs. 25,000 a month. Self-employed people must show that they earn at least Rs. 5 lakhs a year.
- The credit rating or credit score looks at how likely you are to repay a loan. Most banks want a credit score of 750 or higher. But some banks may give personal loans to people whose credit scores are at least 700.
- Different lenders may have different rules about how old you have to be, how much money you have to make, and what your credit score has to be.
Documents Required for a Personal Loan EMI of 5 Lakh
- To prove your identity, you can use a PAN card, passport, driver’s license, Aadhaar card, voter’s ID card, or any other government-issued photo ID card.
- Form 16, your last two months’ worth of pay stubs or salary certificates from your employer, and bank statements from your salary account from the last six months are all examples of proof of income. People who are self-employed can show their trade permits, GSR registration certificates, income tax returns, and financial documents.
- When applying for a loan of Rs. 5 lakhs, applicants must include two recent passport-sized photos.
How Do You Apply for a Personal Loan EMI?
You can follow the steps below if you need a loan for Rs. 5 lakhs right now.
- Enter the necessary information, such as your name, phone number, email address, income, loan amount, etc., on the website of the personal loan provider or another financial sector.
- Provide the necessary paperwork, such as proof of income and identity.
What Should You Do If You Have a Personal Loan EMI?
Here are a few things you can do with your personal loan EMI:
Travel
You can get a personal loan to travel to your dream destinations. Personal loans can be used to pay for airfare, lodging, local transportation, tour activities, and other travel-related costs.
Marriage
In India, weddings can cost a lot of money. You could take out a personal loan EMI to pay for the venue, gifts, shopping, jewellery, catering, and other costs related to the wedding.
Home Renovation
Personal loans could be used to pay for things like painting, small repairs, remodelling, buying household goods, and so on, which are related to home improvement. Most of the time, a loan of Rs. 5 lakh is enough to pay for these costs.
Getting out of debt
With debt consolidation, you can put all of your debts, like credit card bills and old loans, into one loan.
Adjusting the scales
Most banks and NBFCs let you transfer personal loans with high-interest rates to another lender with a lower rate. These balance transfers help borrowers by lowering the interest rate or the time they have to pay back the loan.
Health Treatments
Personal loans are a good way to deal with unexpected medical costs. It is easy to come up with a few lakhs to pay for expensive treatments or surgeries.
How to Calculate Your Personal Loan EMI?
Getting a personal loan EMI calculator makes it easy to figure out your Rs. 5 lakh personal loan EMI. Here’s how to use it:
- Open the personal loan EMI calculator.
- Type the amount you want to borrow.
- Type in the right interest rate.
- Explain how much time the loan has to be paid back.
- You get the annual depreciation schedule and your personal loan EMI right away.
How Can You Get a Personal Loan EMI With Low-Interest Rates?
The interest rate on a Rs. 5 lakh loan might be different for each borrower. Even though you don’t have much control over your job, you can add other sources of income, such as rent, bank interest, your spouse’s income, and so on, to increase your wealth. You can also pay off your current debts to increase your net income. The best way to get a personal loan EMI for Rs. 5 lakh with the lowest possible interest rate is to maintain a high credit score
Summing Up
There can be a financial crisis anytime and out of the blue. In such situations, a personal loan EMI can help you out. It is the best way to get credit and is open to everyone.
Since they are unsecured, personal loans are easy to get online at reasonable rates. Find out if you meet the requirements and how to calculate the personal loan EMI of Rs. 5 Lakhs. Visit Piramal Finance right now to read more about the benefits of getting a personal loan.