Fortunately, with personal loans, managing personal finances is not difficult. During a cash crunch, lending institutions act as an aid and offer attractive interest rates and flexibility to borrowers.
While getting a Rs. 2 lakh personal loan online might seem daunting, it is easier than it looks. Some lending institutions are offering personal loans of Rs. 2 Lakh at an 11.99% interest rate per annum with a flexible repayment tenure of up to 60 months. A personal loan calculator is there to help with the calculation to estimate your repayment amount and monthly outgo.
How You Can Avail A Personal Loan Online?
1. Eligibility Criteria
Although the eligibility criteria vary among lending institutions, they depend on these primary factors:
- Proof of identity
- Proof of address
- Monthly income (pay slip for salaried/ other proofs for self-employed)
- CIBIL score
These are the basic eligibility criteria to sanction a personal loan of Rs. 2 Lakhs online. Most lending institutions offer loans to those aged between 21 and 60 years. Identity proof like a PAN or AADHAAR card is required, along with address proof. Salaried applicants must earn at least INR 25,000 per month (Mumbai and Delhi residents) or INR 20,000 (other Indian cities). Cash salary applicants are not accepted. If you meet these criteria, you will need a credit score of 750 or above to get the best deal with the lowest interest rates.
2. Minimum Documentation
An online loan requires minimum documentation. The documents should be submitted as scanned copies of the originals. Also, there might be some verification from the lending institution if required. In such cases, you must submit those documents as physical copies or show the authorities the originals. You can choose to apply for a personal loan online by filling out an online application form by visiting the lender’s website.
3. Benchmark Prime Lending Rate (BPLR)
According to the Reserve Bank of India’s Master Circular about lending institutions, “At present, loans up to Rs. 2 lakh carry the prescription of not exceeding the Benchmark Prime Lending Rate (BPLR), and on loans above Rs. 2 lakh, lending institutions are free to determine the rate of interest subject to BPLR and spread guidelines.” It shows how there can be different interest rates offered by different lending institutions, so before choosing your option, do some market research. For example, some lending institutions offer the best and cheapest interest rates in India on personal loans, with easy accessibility through an online application.
4. Understanding Interest Rates
Understanding interest rates is crucial before getting a personal loan, because there are different types of personal loans available with different interest rates. Also, the interest rate depends on the tenure of the loan repayment. Generally, if you choose a longer tenure, you will get the best interest rate, which is a beneficial situation for both parties because it not only reduces the interest rates, it also offers you more flexibility with the repayment.
5. CIBIL Score
A CIBIL score or a credit score is essential to getting a personal loan. It is a numerical indicator of your creditworthiness and repayment history. Lending institutions consider the CIBIL score in the loan approval process. To get a personal loan secured either online or offline, you must have a credit score of 750 or above. Any credit score below that suggests that either there are many loans in your name at present or you have missed the deadlines for EMIs, credit card bills, and loan repayments.
Since India is going digital, online personal loans are becoming more popular day by day. You can easily check the eligibility criteria online before applying for one, and if you meet the criteria, there will be no hassle in getting a Rs. 2 lakh personal loan sanctioned. If you can provide the documentation required and have a decent CIBIL score, you can choose a lender according to your requirements with ease.