For meeting financial requirements, many financial institutions and organisations provide low interest Personal Loans of ₹10 Lakh. However, few individuals focus on ensuring they choose a proper loan term. The appropriate duration should be neither too long nor too short. To learn more about this, let’s take a look:
Main Advantages of a ₹10 Lakh Personal Loan
The following are the key advantages of obtaining a Personal Loan of ₹10 Lakh:
- You can acquire a loan for ₹10 Lakh through digital financial portals.
- You can get Personal Loans without pledging any security because they are unsecured loans.
- To estimate the ₹10 Lakh Personal Loan EMI, prepare your budget using an online Personal Loan EMI calculator.
- Use the loan for various things, including a wedding, a weekend getaway, house renovations, unexpected medical expenses, etc.
- Personal Loans have fewer eligibility requirements and far simpler documentation requirements than secured loans.
Requirements for a Personal Loan of ₹10 Lakh
To be eligible for a Personal Loan of ₹10 Lakh, you must fulfil the following requirements:
- Age: You should be at least 22 years old while applying for a loan of ₹10 Lakh and not older than 58 years old when the loan expires.
- Occupation: Only salaried employees are eligible for Personal Loans because of the steadiness of their employment and earnings.
- CIBIL score: As a review of your payment history, your CIBIL score demonstrates to lending institutions your credibility. To qualify for a Personal Loan of ₹10 Lakh, many institutions may need you to maintain a credit rating of 750 or above. Due to the increased risk lending institutions face when extending credit to customers with low CIBIL scores, the interest rates on these loans would be greater. It would be better to calculate it with an online Personal Loan calculator.
Factors for Selecting a Proper Personal Loan Tenure
Your loan amount, interest rates, and other factors all play a role in determining the ideal Personal Loan tenure. Read about each of these elements below:
– Rates of Interest
The rate of interest on Personal Loans may increase if they are unsecured. Lending institutions set interest rates using factors such as your salary, credit rating, area of employment, etc. When you request a Personal Loan, you may be eligible for favourable interest rates thanks to your good credit history. Additionally, if you make a good living and work for a reputable company, you may get low interest Personal Loans. If you don’t receive it immediately, you might need to talk to the lending institution about negotiating a lower rate.
– Present Earnings
If you get enough to repay the loan within 3 and 4 years, don’t choose the Personal Loan’s longest tenure of 5 years. Ask the lending institution if you qualify for a Personal Loan with a relatively short term if you are unsure. If so, lending institutions can grant you such a term to help with your finances.
Don’t be afraid to spend your savings and reduce the term of the Personal Loan. You would only be able to lower your interest charge as a result. Additionally, the annual percentage rate (APR) will decrease even further if you select Personal Loan tenure wisely. So, if you need a Personal Loan of ₹6 Lakh but have ₹2 Lakh through savings, you could apply for ₹5 Lakh using ₹1 Lakh from your savings.
Just as important as picking the ideal loan balance and low-interest Personal Loans is picking the ideal Personal Loan tenure. Pick a shorter tenure if your financial condition permits you to do so to avoid paying as much for a Personal Loan.