A Rs. 2 lakh personal loan for 5 years can be a helpful financial solution for various personal needs, such as home renovation, education, or emergency expenses. Understanding how to calculate the EMI (equated monthly instalment) is key to managing your loan repayments effectively. In this article, we will guide you through the process of calculating EMIs, the eligibility criteria, documents required, and factors influencing the interest rates on such loans. Additionally, we will explain how to apply for a personal loan and manage repayments efficiently.
How to calculate Rs. 2 lakh personal loan EMI?
Calculating the Rs. 2 lakh personal loan EMI for 5 years depends on three factors: the loan amount, interest rate, and tenure. The formula to calculate EMI is:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
P = Loan amount (Rs. 2 lakh)
R = Monthly interest rate (annual interest rate divided by 12)
N = Loan tenure in months (5 years = 120 months)
You can manually calculate it or use a personal loan EMI calculator to get an accurate EMI amount for your Rs. 2 lakh personal loan.
Personal loan EMI calculator for Rs. 2 lakh
An EMI calculator is an excellent tool to simplify the loan calculation process. By entering your loan amount (Rs. 2 lakh), the interest rate, and tenure (5 years), you can quickly get your monthly EMI. Here is how it works:
1. Input the loan amount: Rs. 2 lakh
2. Select tenure: 60 months (5 years)
3. Enter the applicable interest rate
Once you input these values, the EMI calculator will provide you with the exact monthly repayment amount. For example, at an interest rate of 13%, the EMI for a Rs. 2 lakh loan over 5 years would be approximately Rs. 4,551.
Eligibility for a Rs. 2 lakh personal loan
You can qualify for a Bajaj Finserv Personal Loan once you meet the below loan eligibility criteria:
1. Nationality: India
2. Age: 21 years to 80 years*.
3. Employed with: Public, private, or MNC.
4. CIBIL Score: 685 or higher.
*You should be 80 years* or younger, at the end of the loan tenure.
Documents required for a Rs. 2 lakh personal loan
With a Bajaj Finserv Personal Loan, you can apply for a Rs. 55 lakh personal loan with minimal documents:
1. KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register
2. PAN card
3. Employee ID card
4. Salary slips of the last 3 months
5. Bank account statements of the previous 3 months
Factors that affect the interest rate applicable on a Rs. 2 lakh personal loan
Several factors influence the interest rate on a Rs. 2 lakh personal loan, including:
1. Credit score: A higher credit score (700+) leads to lower interest rates.
2. Income level: Stable and higher income attracts better rates.
3. Loan tenure: Shorter tenures may result in lower interest rates.
4. Debt-to-income ratio: A lower ratio ensures better chances of getting a competitive rate.
5. Lender’s policies: Different lenders offer varied rates based on market conditions and internal policies.
Understanding these factors can help you secure a loan with favourable interest rates.
How to apply for a Rs. 2 lakh personal loan
Applying for a Rs. 2 lakh personal loan from Bajaj Finance involves the following steps:
1. Click on ‘APPLY’ on this page to open our online personal loan application form.
2. Enter your 10-digit mobile number and the OTP sent to your phone.
3. Fill in the application form with your basic loan details, such as your full name, PAN, date of birth, and PIN code.
4. Now, click on ‘PROCEED’ to visit the loan selection page.
5. Enter the loan amount that you need. Choose from our three personal loan variants –Term, Flexi Term, and Flexi Hybrid.
6. Choose the repayment tenure and click on ‘PROCEED’.
7. Complete yourKYCand submit your application.
Our representative will guide you on the next steps. The loan amount will be transferred to your bank account on the successful verification of your documents.
Conclusion
Taking a Rs. 2 lakh personal loan for 5 years can be an effective way to manage financial needs, but careful planning is required. Understanding the EMI calculation process, meeting the eligibility requirements, and having the right documents ready will streamline the loan approval process. By factoring in the variables that affect interest rates, you can make informed decisions and secure favourable terms. Use an EMI calculator to estimate your monthly payments accurately, ensuring better financial planning for the future.
