A personal loan of Rs. 55 lakh for 8 years can be an excellent solution if you need funds for a major expense, such as a home renovation, a wedding, or educational courses. With flexible repayment options, a personal loan offers the financial freedom without the need for collateral. The key factor in borrowing a large amount is understanding the EMI (equated monthly instalment) you will need to pay. This article will guide you through calculating the EMI for a Rs. 20 lakh personal loan over a 10-year period, the eligibility criteria, and how to apply.
Please note: With a Bajaj Finserv Personal Loan, you can get tenure options ranging up to 96 months, which is 8 years.
How to calculate Rs. 20 lakh personal loan EMI for 10 years?
Calculating the EMI for a 20 lakh personal loan EMI for 10 years is relatively simple. The EMI is calculated based on the loan amount, interest rate, and tenure. You can use the following formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
P = Loan amount (Rs. 20 lakh)
R = Monthly interest rate (Annual interest rate divided by 12)
N = Loan tenure in months (10 years = 120 months)
Using this formula manually can be complicated, but an online personal loan EMI calculator simplifies the process by providing quick and accurate results.
Personal loan EMI calculator for Rs. 20 lakh
A personal loan EMI calculator is an efficient tool for determining the monthly instalment for a Rs. 20 lakh personal loan EMI for 10 years. You simply need to input the loan amount, interest rate, and tenure into the calculator. For instance, if the interest rate is 10%, and the loan tenure is 10 years, the EMI would be around Rs. 26,430 per month.
An EMI calculator helps you adjust various factors like tenure and interest rate to find a repayment schedule that fits your budget. It also provides a breakdown of the total interest payable over the loan period.
Eligibility for a Rs. 20 lakh personal loan
The eligibility criteria for a personal loan differs from lender to lender. You can qualify for a Bajaj Finserv Personal Loan once you meet the simple eligibility criteria mentioned below:
- Nationality: India
- Age: 21 years to 80 years*.
- Employed with: Public, private, or MNC.
- CIBIL score: 685 or higher.
*You should be 80 years* or younger, at the end of the loan tenure.
Meeting these eligibility requirements ensures that you can access the required loan amount and benefit from better interest rates.
Documents required for a Rs. 20 lakh personal loan
When applying for a personal loan, you will need to submit several key documents to verify your identity, income, and financial status. With a Bajaj Finserv Personal Loan, you can apply with minimal documents as below:
- KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register
- PAN card
- Employee ID card
- Salary slips of the last 3 months
- Bank account statements of the previous 3 months
Factors that affect interest rate applicable on a Rs. 20 lakh personal loan
The interest on personal loan on a Rs. 20 lakh personal loan can vary based on several factors:
- Credit score: A higher credit score can lead to lower interest rates.
- Income: Higher-income individuals may be offered more competitive rates.
- Loan tenure: Shorter tenures generally come with lower interest rates, but this increases the EMI.
- Lender’s policies: Different lenders offer different rates depending on their policies and market conditions.
- Debt-to-income ratio: If your existing debts are high, lenders may charge a higher interest rate.
Understanding these factors will help you negotiate better terms and find a loan that fits your financial situation.
How to apply for Rs. 20 lakh personal loan
Applying for a Rs. 20 lakh personal loan from Bajaj Finance is a straightforward process:
1. Click on ‘APPLY’ on this page to open our online personal loan application form.
2. Enter your 10-digit mobile number and the OTP sent to your phone.
3. Fill in the application form with your basic loan details, such as your full name, PAN, date of birth, and PIN code.
4. Now, click on ‘PROCEED’ to visit the loan selection page.
5. Enter the loan amount that you need. Choose from our three personal loan variants –Term, Flexi Term, and Flexi Hybrid.
6. Choose the repayment tenure and click on ‘PROCEED’.
7. Complete yourKYCand submit your application.
Our representative will guide you on the next steps. The loan amount will be transferred to your bank account on the successful verification of your documents.
Following these steps ensures that your loan application process is seamless and hassle-free.
Conclusion
A Rs. 20 lakh personal loan EMI for 10 years can be a suitable financial solution for various needs, but it is essential to understand the EMI payments and your overall eligibility before applying. Use an online EMI calculator to estimate your monthly payments and evaluate the factors that influence interest rates. Meeting the eligibility criteria and providing the necessary documentation will speed up the approval process. By doing thorough research and selecting the right lender, you can ensure that you get a personal loan with terms that are convenient and manageable.
*Terms and conditions apply.
