A Rs. 8 lakh personal loan can be a practical solution to meet various financial needs, such as funding education, medical expenses, home renovations, or any other significant personal expenses. Opting for a loan tenure of 10 years spreads out the repayment, making it more manageable. However, understanding how much you will need to pay each month is essential for effective budgeting. In this article, we will explore how to calculate the EMI (equated monthly instalment), eligibility criteria, required documents, and other key factors regarding a personal loan.
How to calculate Rs. 8 lakh personal loan EMI for 10 years?
Calculating the Rs. 8 lakh personal loan EMI for 10 years involves using a standard formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
P = Loan amount (Rs. 8 lakh)
R = Monthly interest rate (Annual interest rate divided by 12)
N = Loan tenure in months (10 years = 120 months)
You can either calculate this manually, or to save time and ensure accuracy, you can use a personal loan EMI calculator. Enter the loan amount, interest rate, and tenure to get a quick estimate of your monthly EMI.
Personal loan EMI calculator for Rs. 8 lakh
A personal loan EMI calculator is an online tool that simplifies the EMI calculation process. By inputting the loan amount, interest rate, and tenure, you can instantly find out how much your EMI will be. For example, if the interest rate is 10%, the EMI for a Rs. 8 lakh personal loan over 10 years would be approximately Rs. 10,550 per month.
Using an EMI calculator allows you to adjust the loan amount, tenure, and interest rate, giving you a clear understanding of what to expect before you apply for a loan.
Eligibility for a Rs. 8 lakh personal loan
The eligibility criteria for a personal loan based on the 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. 8 lakh personal loan
When applying for a personal loan of Rs. 8 lakh, you will need to submit several key documents. 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 the interest rate applicable on a Rs. 8 lakh personal loan
Several factors can impact the personal loan interest rate applicable to your Rs. 8 lakh personal loan:
- Credit score: A high credit score often results in a lower interest rate. If your score is low, you may face higher interest rates.
- Loan tenure: Longer loan tenures may result in higher interest rates, though the EMI will be lower. Shorter tenures may offer lower interest rates, but EMIs will be higher.
- Market conditions: The prevailing economic conditions can influence the interest rates lenders offer.
- Income and repayment capacity: Lenders may offer better interest rates to borrowers with higher incomes and stable jobs, as they are seen as less risky.
- Lender's policies: Different lenders have varied interest rate policies, which can affect the rate you receive.
Understanding these factors can help you negotiate a better interest rate with your lender.
How to apply for Rs. 8 lakh personal loan
Applying for a Rs. 8 lakh personal loan from Bajaj Finance involves the below steps.
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.
Conclusion
Taking out a Rs. 8 lakh personal loan EMI for 10 years can be a convenient way to finance important expenses, such as home improvements, education, or even medical emergencies. With a long tenure of 10 years, the EMIs are more manageable, making repayment easier over time. By understanding how to calculate the EMI, using a personal loan EMI calculator, and ensuring that you meet eligibility criteria, you can make an informed decision when applying for the loan. Always compare lenders and loan terms to find the best option for your financial needs and be sure to negotiate the most favourable interest rate possible.
