Rs 1 Lakh Personal Loan

Look, we understand the daunting task of going from website to website to choose the right personal loan. To make it easier, we at Paisabazaar have done the work for you. To apply for a personal loan of Rs. 1 lakh:

The Rs. 1 lakh loan interest rate generally ranges from Rs. 10.50% to 24% based on eligibility. Your income, credit score, loan tenure, etc., will determine the exact interest rate on your loan.

Apart from the interest rate on personal loan, there are other fees and charges that you will have to pay on your one lakh loan amount. Take a look at the common fees and charges levied by lenders:

Before you apply for your personal loan, be sure to check the eligibility criteria as mentioned below:

Try and keep these documents handy to avoid last-minute shake-ups.

We have done the math below, so you have a clear picture of what lies ahead. Take a look at the EMI for a Rs. 1 lakh loan at 12.00% p.a. interest from 1 year to 5 years tenures:

Lower EMI vs. Lower Interest Cost

• Lower EMIs over longer tenures may ease the monthly burden, but total repayment increases substantially.
• A 5-year loan tenure leads to Rs 33,467 in interest, over 5 times what you’d pay for a 1 year loan.
• Choosing a shorter tenure significantly reduces interest cost, if your monthly budget allows keeping aside essential financial goals.
• Borrowers with a limited repayment capacity can opt for longer loan tenures and prepay when they have adequate surplus funds.

Note: Prepayments should not compromise monthly contributions. Some lenders may mandate borrowers to repay a predetermined number of EMIs before allowing prepayments or foreclosures and levy penal charges for the same. Fixed-rate loans have no prepayment penalties