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How To Take 1 Lakh Rupees Personal Loan In Easy Steps

Today all of us are in need of instant funds. Sometimes arranging these becomes a necessity whether the pocket allows it or not. Here, personal loans of Rs. 1 lakh prove very helpful in meeting small day-to-day financial requirements, and at times the small urgent requirements are also met using these types of loans.

Such small instant loans of Rs. 1 lakh sound helpful to meet urgent expenses like, pay high-interest credit card dues, get an advance before salary credit and to pay off informal debts. Some may also use the platform to avail of this loan if they are unable to get a small amount from a bank or have higher due obligations. As the loan is unsecured and the amount is 50k, it can be used for a variety of reasons from travel, medical, marriage to home renovations, to buy some assets, etc. For smooth life in metro cities, this has become a basic means of survival for low-income groups.

Loan categories:

Depending upon the (term of payment), the personal loan can be divided into three basic

categories. These personal loans are mostly unsecured and hence do not involve any risk in the future. The benefit of the loan can be availed according to the basis of requirements. They may be:

Short-term loans:

These loans are given for a period between 3 to 12 months, with amounts ranging between Rs. 20,000 to Rs. 1,00,000. They seem perfect to help you with small requirements, and interest rates charged are slightly higher given the shorter tenure.

Long-term loans:

These loans are given for a period between 12 to 60 or sometimes even 72 months with an amount ranging between Rs. 1,00,000 to Rs. 30,00,000. They help meet your large requirements and have lower interest rates due to the high amounts.

Salary Advance loan:

An advance is just an ultra-short-term loan given for periods between a few days and up to 3 months. The loan amount is generally used as a bridge between salaries to meet expenses and attract high-interest rates.

Main reasons for opting to ₹ 1 lakh Personal Loan

A personal loan can be taken for a variety of purposes and requirements. Some of these include:

Marriages

Planning of short holiday trips

Renovation of houses

Purchase of any asset

Starting up a small business venture

Vehicle purchase

Rent payment

Bank transfers, payment of credit cards, payment of some type of debts, etc.

These funds can be used for any purpose or emergency expense, such as medical treatment, purchase of a gadget, home repair, educational fees, vehicle repair, travel trip, etc.

Documents required for availing a personal loan

The documents are proof of your identity and reliability. These are generally used to explain the complete profile of the borrower. Banks and financial institutions require the necessary documents to provide you with a personal loan facility. Though the private institutions may provide you loans with less paperwork, there are some basic documents required by anyone who grants you loans. The documents mentioned below forms the basis of the loan:

Pan Card

KYC (Identity and Address proof)

Salary slips

Income Proof – Latest 3 months’ salary slips, Receipts, Form 16, etc. (for self-employed professionals)

Bank Statements – 6 months bank statements

House ownership proof (if any)

Business existence proof, P&L, Balance sheet, IT statement, Audit report etc. (for business people).

Features of financial institutions now-a-days:

Nowadays, financial institutions come with easy availing loan facilities that have the following features:

Quick approvals

Transparency interest rates

Minimal processing fees

Completely secured process

Minimum paperwork

Flexibility payment terms

Instant disbursement

100% online process

The above-mentioned points make it simple and easy to get instant and hassle-free loans almost in a wink of an eye and ensure a smooth life.

Easy and simple steps to secure a Rs. 1 lakh loan quickly

Fill the application form with your personal and financial details.

Decide on a loan amount and term of repayment to get instant approval.

Ensure a high credit score.

Submit all the necessary documents to the representative.

Get money in your bank account within 24 hours of approval.

Gathering of required documents.

Comparing the policies, terms, and conditions, and rates of interests offered by various institutions.

1 Lakh Personal Loan Interest Rates 2021

Some top financial institutions and their interest rates are mentioned below for reference.

HDFC Bank: 10.99 – 20.75%

ICICI Bank: 11.70 – 18.85%

Bajaj Fiserv: 11.99 – 16.00%

Fullerton: 14.00 – 33.00%

Kotak: 11.50 – 20.00%

IndusInd: 12.99 – 17.00%

Processing Fees / Prepayment Charges

These charge some processing fees and other sorts of expenses in return for their services. Some referential sources can be:

Banks Processing Fee Pre-Payment Charges Bajaj Fiserv Upto 2.00%Upto 4% post 1st EMI clearance ICICI Bank1.99% to 2.50%Zero or 5.00%Axis Bank2.00%NilKotak1.5 – 2.00%5.00%HDFC Bank0.8% – 2.00%4.00%Fullerton India2.00% Upto 7.00%0% after 3 years Standard Chartered NIL (Zero) Upto 2.00% of loan amount

Yearly Calculated Values for Rs.1 lac Loan for 3 Years at 14.00% rate of interest:

Year Principal Interest Balance Amount

1 Rs. 28,819 Rs. 12,197 Rs. 71,181

2 Rs. 33,122 Rs. 7,894 Rs. 38,059

3 Rs. 38,098 Rs. 2,946 Rs. 0

Concluding Instant Personal Loan of 1 lakh is a financial benefit provided by banks and institutions to salaried individuals and low-income groups in India. The funds can be used to resolve any monetary expense. It is an unsecured loan where you do not have to submit collateral. This is actually proving to be a boon in metro cities where life is a bit expensive and the need of the hour always funds. If you need to borrow a lot of money, finding a lender that fits your needs and is willing to extend funds at a reasonable interest rate can be difficult.

Related Articles: Steps to Get Rs. 2 Lakh Personal Loan

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Planning to Buy a Car : Follow This 10% To Avoid a Financial Burden

There comes a time in all of our lives when we want to purchase a car to meet our commuting needs, and in situations such as these where social distancing is being actively encouraged, buying a car is no longer a luxury reserved for the few but a bare necessity to continue our work effectively.

However, irrespective of the fact that we are buying a new vehicle or a pre-owned one, there is a lot of thinking that is invested before you sign the dotted line, and thus in today’s article, we will help you navigate the thought process and also assist you in making a wise financial decision.

Understanding the Financing of Your Vehicle

These days due to the rapidly evolving automobile sector in India and the influx in lenders who have readily available automobile financing plans, buying a car has become easier than ever before. If you have a steady source of income and a decent credit score, almost any lender will be willing to finance your purchase; however, the question remains as to how much you should spend on actually getting your vehicle.

The 10% Rule

When you are planning to purchase a vehicle, especially if it is your first one, the decision can be tough, essentially from a financial standpoint. Financial experts from around the world believe that you should be spending no more than 10% of your monthly in-hand income towards financing your car EMI and when you think about it, it actually makes sense.

According to the above formula, if your current monthly income is ₹45,000, ideally, you should be spending only ₹4500 every month towards your car loan repayment. Now while this amount might sound limiting at first, but when you take a deeper look at the calculation, it starts making sense.

Let us explain.

Lenders across India follow a general rule of thumb which dictates that under no circumstances should the sum total of your monthly EMIs be more than 45% of your current monthly income. This rule is strictly enforced in order to ensure that the chances of a default are minimized, and you can better plan your personal finances.

And since every loan you take gets recorded in your credit report, spending only 10% of your income on your car EMI will mean that you still have a runway of 35% to finance other loans and EMIs.

Let us understand this better with an example.

Suppose your current monthly income is ₹50,000. Thus according to the above formula, in any given month, you can spend a maximum of ₹22,500 towards repaying your EMIs. This sum total can be further broken down into various categories, such as

Home Loan

Car Loan

Personal Loan

Such that you have a good lending portfolio with less defaults, and you are yet able to properly manage your personal finances.

However, How Do You Finance Your Car Loan With Just 10%?

As displayed in the above example, spending only 10% of your monthly income towards your car EMI can be limiting at first glance, and thus shared below are some tips and tricks you can use to increase your chances of staying within the spending limit and yet be able to finance your dream vehicle.

Have a Good Credit Score

Irrespective of the lender you apply at, one of the first things they will check is your credit score. Your credit score can be simply understood as being a numerical value that is assigned to you by the credit rating agency after taking into consideration your credit history. In India, there are two main credit rating agencies, CIBIL and Experian, and they take into account the following four factors to calculate your credit score.

The number of loans you have taken in the past

The total amount of credit you have utilized in the past

The total number of timely payments you have made

The total number of late payments you have made

Taking all these factors into account, you are given a credit score on a scale of 900, and the higher your score, the lesser your interest rate.

Conduct Extensive Research

Alongside maintaining a good credit score, the next thing you need to do is conduct extensive research before making a purchasing decision. As a first step, search for all the lenders in your city who offer vehicle financing, and while browsing their offers, be mindful of the interest rates they charge along with the tenure they offer.

Since the vehicle financing industry in India is rapidly growing, chances are that if you research right, you will come across an offer with a low-interest rate and relatively longer tenures. Typically most car loans in India arrive with a tenure of 5 years, and thus equipped with data; you can calculate the total loan amount you can afford based on the 10% rule we shared earlier.

Apply For a Secured Loan

Most lenders in India offer an added feature wherein you can apply for a secured vehicle loan. Essentially this feature allows you to pledge an asset or collateral of similar or higher net worth than your loan amount and use it as a security for your loan. Since in a secured loan, the risk for the lender is less, these types of loans generally arrive with a lesser rate of interest.

A lesser rate of interest will automatically translate to cheaper EMIs and thus enable you to maintain the spending cap and yet finance your dream vehicle.

In Conclusion:

Undertaking research and finally arriving at the decision to purchase a car to meet the needs of you and your family is a time and resource-intensive process; however, if it is not executed correctly, it has the potential to significantly harm your personal finances. The rule of 10% essentially helps you navigate the pathway to this decision and ensures that you are able to purchase your dream vehicle while at the same time be able to properly manage your personal finances without any defaults.

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Marriage Loan: Need of Personal loan for Marriage?

Your marriage is an important and auspicious moment in your existence. We'd be proud to be your chosen monetary partner in making this an unforgettable occasion. No matter if you have an exquisite location in hand, a luxurious array of food, stylish wedding dress, glamorous photography, or something else in mind, making these stunning memories that you can treasure for a decade requires a sufficient amount of preparation and finances. With our personal loan for weddings, you can get the funds you need to make your wedding day even more pleasant.

Benefits of Taking a Personal Loan for Marriage

Your current savings will not be required, and the loan can be tailored to fit the plan, enabling you to manage your personal finance more smartly.

Apart from marriage, you don't need to tickle all the current savings set aside for other essential personal planning.

You won't have to spend all of the current assets because, as previously said, a personal loan is unsecured, which implies the loan is disbursed without any asset being retained as collateral. The loan is contingent on your financial history and credit attitude.

With minimum paperwork and faster loan disbursement, a personal loan for marriage can be the best suit for you.

You will enjoy wonderful memories with your family when paying off your personal loan. 

6 Reasons to Use a Personal Loan for Marriage

A personal loan helps you to make your wedding perfect. With a marriage loan, you will have full financial comfort for your wedding day. Here are some of the reasons why a personal loan for marriage is a smart idea.

 1.  Money View will let you get a loan within a matter of minutes. With almost no paperwork, the funds will be deposited directly into your account.

2. This implies you can devote more time planning your wedding and less time thinking about seeking funds when you need to pre-manage your wedding.

3. You can invest the loan amount into garments, makeup designers, wedding cards, hotel stays, reception halls, catering, and flight tickets to your honeymoon destination, among other items.

4. A personal loan generally has a variety of EMI and term options, ranging from months to years. As a result, you can adapt your repayment strategy throughout your monthly salary, financial desires, and working capital.

5. If you have a decent credit background, the bank is convenient to grab you a wedding loan with a low-interest rate. You can repay the loan quicker and be debt-free sooner if you get a lower interest rate.

6. You can keep your investments going up when preparing for the wedding with a personal loan. So go ahead and apply for a personal loan with us right now and start smiling. 

How Much Loan Amount One Can Avail for His or Her Marriage?

Although marriage is a once-in-a-lifetime experience, a personal loan for marriage through Money View will help you make things unforgettable without sacrificing additional expenses. A personal for marriage can be obtained from us by any Indian resident between the ages of 21 and 60 who has a minimum income.

1. If you are a salaried employee or self-employed, you can get a loan of up to Rs 5 lakh, based on your credit score, eligibility, income stability, and other considerations.

2. A salaried person's minimum monthly salary to apply for a marriage loan from us is Rs 13,500.

3. Alternatively, a minimum annual income after taxation would be accepted for self-employed persons. For a personal loan, banks allow a minimum income of Rs 25,000.

Some banks, on the other hand, provide loans for salaries of less than Rs 25,000. The ratio of your fixed liabilities to your monthly income determines your loan eligibility. The liabilities to income ratio can rise to 65 percent for those with a higher income. Most banks and NBFCs (non-banking financial companies) can lend you up to Rs 25 lakh irrespective of whether you are a salaried employee or self-employed, according to your credit background. 

The minimum and maximum amount that can be borrowed vary depending on the lending institution. SBI, for example, provides salaried individuals a cumulative personal loan of Rs 20 lakh, according to its website. According to the bank's website, HDFC Bank provides personal loans up to Rs 12 lakh respectively.

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