When you need a personal loan of ₹2 lakhs or less, making the right choices becomes even more important. Taking the wrong loan can lead to getting stuck with high interest rates or stringent terms and conditions. The good news is that getting a quick and affordable personal loan of ₹2 lakhs is possible if you follow some smart tips.
This blog provides a comprehensive guide to help you get a hassle-free personal loan of up to ₹2 lakhs within a few days.
Tip 1: Choosing Between Banks, NBFCs, Peer-To-Peer Lending, and Fintechs
Since ₹2 lakhs is a relatively small loan amount, it is important to evaluate all your options to get the best interest rate and loan terms. Different lending avenues may be suitable depending on your financial situation, credit history, and urgency.
- Banks: Going to large nationalised or private sector banks may not be your best option if you are seeking a low loan amount. Banks often have stringent approval criteria and longer processing times that are more suited for higher-value loans. However, if you have an existing relationship with a bank and a good credit score, you may be able to get competitive interest rates.
- NBFCs: Non-banking financial companies are your best options for small-ticket personal loans. They often have faster processing and more flexible eligibility norms than other financial institutions. NBFCs, with their favourable interest rates, can be a good option for quick loans if you have a regular income but a limited credit history.
- P2P Lending: New-age peer-to-peer lending platforms connect individual investors willing to lend with potential borrowers directly. The loan approval is based on your repayment capacity and credit score. However, P2P lending is often backed by high interest rates compared to other lending options. The process also involves stringent documentation and verification.
- Fintech Apps: If you are self-employed or have irregular income, new digital lending apps may offer personal loans with minimal paperwork. However, convenience comes at a cost with higher interest rates. Evaluate all charges carefully if considering this option.
Tip 2: Check Your Eligibility for Quick Approval
Before applying, check what will be the eligibility criteria for a ₹2 lakh personal loan. The eligibility criteria can vary with different lenders but are typically the following:
- Age between 21 to 60 years
- Salaried individual with minimum monthly income ₹15,000. For self-employed individuals, 2 years of business vintage may be required.
- A decent credit score
- Have all necessary documents ready, like PAN card, Aadhaar card, bank statements, payslips, etc.
Tip 3: Understand Interest Rates, Fees & Charges
Interest rates on ₹2 lakh personal loans vary across leading banks, NBFCs, and other financial institutions and are often based on the applicant's profile. Those with excellent credit scores get the lowest rates.
Processing fees generally range from 1% to 5% of the loan amount. Other charges include foreclosure, late EMI fees, cheque bounce charges, etc. Understanding the applicable rates and charges will determine the overall cost of your loan.
Tip 4: Use an EMI Calculator
Calculating your Equated Monthly Instalments (EMIs) in advance using an online EMI calculator will help you determine the loan amount and tenure that is comfortable for your income level.
A personal loan EMI calculator allows you to input the loan amount, interest rate and loan tenure to arrive at the amount you need to repay every month. Shriram Finance's user-friendly EMI calculator lets you input loan details and instantly generate the repayment schedule.
Compare the EMIs for different loan amounts, tenures and interest rates. This will help you choose the most optimal combination that fits your budget and increases your chances of loan approval.
Keeping the EMI under 50% of your monthly income is advisable for getting easy approval. If the EMI is too high compared to your income, lenders may be hesitant to approve the loan due to concerns regarding repayment capacity.
Tip 5: Opt for Digital Documentation
In the digital lending landscape, uploading documents online can speed up loan approvals compared to physical verification. Many financial institutions now offer the option to upload KYC and income documents through their website or mobile app.
Opting for e-KYC using your Aadhar number allows instant online identity verification and proof of address. Similarly, directly uploading your bank statements, ITRs, salary slips, etc, removes the need for physical verification.
Digital documentation enables the financial institution to process your application faster, as your documents are available instantly. It eliminates delays due to misplaced papers or time-consuming verification.
However, ensure the scanned or photographed documents submitted online are clear and legible. Keep the originals handy in case the lender requires physical verification later.
Conclusion
Taking time to build your creditworthiness, comparing financial institutions, and submitting the right documents can help you get a loan of ₹2 lakhs quickly and at a competitive interest rate. Following the tips shared in this blog, you can make an informed decision on your loan and access funds in just a few days to meet your needs.
FAQs
1. Can I get a 2 lakh personal loan?
Yes, you can easily get a personal loan of ₹2 lakhs from most banks and NBFCs if you meet the eligibility criteria, such as income, credit score, work experience, etc. The process is quick and online.
2. How can I get a personal loan of ₹2 lakhs fast?
To get fast approval on a ₹2 lakhs personal loan, maintain a good credit score, stick to a low loan-to-income ratio, provide all documents upfront, and apply online on lending websites for the fastest processing.
3. What is the maximum tenure I can get for a ₹2 lakh personal loan?
Most financial institutions offer personal loans up to ₹2 lakhs for a maximum tenure of 5 years. This reduces your monthly outgo towards EMIs and improves eligibility. However, longer tenures also mean higher interest outgo in total.
4. What documents are required for a ₹2 lakh loan?
Identity proof, address proof, income statements, bank statements, credit reports, and employment documents are standard documents required for a ₹2 lakh personal loan. Keep digital copies ready for online submission and check with your loan provider for any other specific document that they may need.
5. What is the benefit of digital documentation for a ₹2 lakh personal loan?
Digital documentation enables faster verification and removes location constraints so you can submit documents from anywhere in India and receive quicker loan approval.
