Personal loans are best for fulfilling an urgent financial obligation. You may need personal loan to buy a property, set up a small business, pay off debt, or for any other reason. Whatever your reason is, personal loans can help you get instant money. Many people require a 5 lakh loan for meeting financial obligations. Well, you can get INR 5 lakhs as a loan only after meeting some eligibility requirements. Many people are worried about the lengthy paperwork process for getting a loan of INR 5 lakh. Read on to know the best way to get a personal loan of INR 5 lakhs in 2022.
Factors that decide the maximum personal loan amount
You may not be applicable for getting a personal loan of INR 5 lakhs every time. It is because the loan amount you can get depends on several factors. You can be eligible for a loan anywhere, between INR 5,000 to INR 5 lakhs depending on several factors. The loan provider usually decides how much amount you can get as a loan. The factors that decide the maximum amount of loan you can get are as follows:
- The purpose of the loan will decide the maximum amount you can get. For example, some financial institutions may deny INR 5 lakhs loans without any viable reason.
- Personal loans are often offered to salaried individuals. Your repayment capacity will be decided based on your earnings. Your income plays a major role if you want a personal loan of INR 5 lakhs.
- Loan providers see your credit score before providing you with a personal loan. Your credit score can range between 300 and 900, and you need at least 650-700 to get a personal loan. Also, if you need a bigger loan amount, you need to have a better credit score.
Types of personal loans in 2022
Before you apply for a personal loan in 2022, you should know about different types of personal loans. You may not get a five lakhs loan if you just need it for shopping. However, if you need to open a small business, you can apply for a small business loan and get the amount. The purpose of your loan affects how much amount you can get as a loan. The major types of personal loans in 2022 are as follows:
- Instalment loans: An instalment loan has a pre-defined number of payments at fixed intervals. If you need personal loan, an instalment loan is the best choice. You can break the loan amount into multiple instalments and pay them easily over time.
- Small business loans: For setting up a small business, capital is required. If you don’t have that kind of capital, you need a small business loan to get started.
- Short-term loans: A personal loan for a short term needs to be repaid within 3-5 years. Short-term personal loans are good when you have a stable source of income. If your repayment capacity is good, you can opt for a short-term personal loan.
- Unsecured personal loans: Unsecured personal loans are the easiest to get as you don’t need collateral. However, you will have to repay the loan amount in the given period. Non-payment of unsecured personal loans can invite interest charges and bad credit scores.
How to apply for a loan of INR 5 lakhs?
The best way to apply for a personal loan of INR 5 lakhs is via a digital lending platform. You don’t want to indulge in the lengthy paperwork process for getting a loan of INR 5 lakhs. Gone are the days when only traditional banks and NBFCs could provide you with a loan of INR 5 lakhs. Many digital lending sites provide unsecured personal loans from INR 5,000 to INR 5 lakhs. You just have to enter a few details and submit some documents digitally to get a personal loan.
On a digital lending platform, you have to go through KYC verification for getting a personal loan. You can be asked to submit your ID cards, salary slips, and other documents to get a personal loan. If you are a salaried individual with a good credit score, you may get a personal loan of INR 5 lakhs. Choose a digital lending firm if you need personal loan in 2022!