Rs. 20 Lakh Loan

Learn how to get a Rs 20 lakh loan with options like ESOP financing, loans against bonds, mutual funds, shares, and insurance.
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3 mins read
15-May-2025

A Rs. 20 lakh loan can help finance business expansion, medical emergencies, higher education, home renovation, or any personal financial need. Instead of opting for high-interest unsecured personal loans, borrowers can choose secured loans against shares, bonds, mutual funds, or insurance policies. These loans offer lower interest rates, flexible repayment options, and quicker approvals.

Secured loans allow borrowers to leverage existing investments without liquidating them, ensuring continued financial growth while addressing urgent fund requirements. Since the lender holds these investments as collateral, interest rates are significantly lower than unsecured loans, making them a cost-effective option.

This guide explores six effective ways to secure a Rs. 20 lakh loan, eligibility criteria, required documents, the application process, benefits, and EMI calculations. Understanding these aspects will help borrowers make informed financial decisions and select the most suitable loan type based on their needs.

6 ways to get Rs. 20 lakh loans

The table below outlines six secured loan options, their interest rates, and repayment terms. These options provide lower interest rates than personal loans and allow borrowers to use their financial assets as collateral.

Loan product Interest rate Loan tenure Details and application link
ESOP Financing up to 15% p.a. Up to 36 months Learn more and apply for ESOP Financing
Loan Against Bonds Up to20% per annum Up to 36 months Learn more and apply for Loan Against Bonds
Loan Against Insurance Policy Up to 24% p.a.(In case of lock-in policies, compounding interest will be chargedIn case of lock-in free policies, simple interest will be charged) Up to 96 months Learn more and apply for Loan Against Insurance Policy
Loan Against Mutual Funds 8-15% per annum Up to 36 months Learn more and apply for Loan Against Mutual Funds
Loan Against Shares 8-15% per annum Up to 36 months Learn more and apply for Loan Against Shares



Each of these loans provides access to quick funding with minimal paperwork. Borrowers can continue earning returns on their investments while using them as collateral for securing a loan.

Eligibility criteria for a Rs. 20 lakh loan

Meeting the lender’s eligibility criteria is crucial for a successful loan application. Though specific requirements may vary, here are some common eligibility factors:

  • Age: 18 to 65 years
  • Income: Stable income source from salary, business, or investments
  • Employment status: Salaried or self-employed professionals/business owners
  • Asset ownership: Existing investments in bonds, shares, or insurance

Lenders may have additional criteria depending on the loan type and security offered. This is based on Bajaj Finance loan against securities.

Loan Against Shares
Loan Against Mutual Funds

Documents required for Rs. 20 lakh loan

To ensure quick approval and disbursal, applicants must provide valid documentation. Lenders require identity, income, and investment proof to process the loan application.

Official Valid Documents (OVDs) for KYC:

  • Identity proof: Aadhaar, PAN, passport, driving license or Voter ID
  • Address proof: Utility bills, passport, driving license, or Aadhaar card

Other documents:

  • Income proof: Salary slips, IT returns, or business financial statements
  • Bank statements: Last six months’ statements
  • Investment proof: Ownership documents for shares, bonds, mutual funds, or insurance policies
  • Loan application form: Completed and signed form as per lender’s requirement

Additional documents may be needed based on the type of loan applied for.

How to apply for a Rs. 20 lakh loan?

Applying for a Rs. 20 lakh loan is a simple process that can be completed online or offline. Here’s a step-by-step guide:

  1. Choose a suitable loan type – Compare ESOP financing, loans against bonds, or shares to find the right option.
  2. Check eligibility criteria – Ensure you meet the lender’s requirements, including credit score and asset ownership.
  3. Gather necessary documents – Keep ID proof, income proof, and investment details ready for faster processing.
  4. Apply online or offline – Visit the lender’s website or branch to submit your loan application.
  5. Get loan approval – The lender will verify documents, check credit history, and approve the loan if all conditions are met.
  6. Disbursement – Once approved, funds are transferred to your bank account within a few days.

Benefits of Rs. 20 lakh loans against investments

Choosing a Rs. 20 lakh loan against investments offers multiple advantages over unsecured loans:

  • Lower interest rates: Secured loans have significantly lower interest rates than personal loans.
  • Quick approval and disbursal: Minimal documentation and fast processing ensure funds are available within days.
  • No need to sell investments: Borrowers can use their shares, or bonds as collateral while continuing to earn returns.
  • Flexible repayment tenure: Loan terms range from 12 to 60 months, allowing manageable EMIs.
  • Higher loan amount eligibility: Loan amounts depend on the value of the pledged assets, enabling access to higher funding.
  • Loan to Value (LTV): Lenders offer 50% to 90% of the investment’s value as a loan, ensuring substantial borrowing capacity depending on the lender itself.

These benefits make secured loans an attractive financing option for borrowers needing immediate liquidity without financial strain.

Conclusion

A Rs. 20 lakh loan against investments is a smart way to access funds without liquidating assets. Secured loans offer lower interest rates, flexible repayment options, and quick approvals, making them ideal for borrowers needing immediate liquidity.

Before applying, compare loan options, interest rates, and repayment terms to choose the best solution for your financial needs. Proper financial planning ensures smooth repayment and effective use of the borrowed amount.

Explore Loan Against securities by Bajaj Finance Limited.

Frequently asked questions

How to get a 20 Lakh Loan immediately?
To get a Rs. 20 lakh loan quickly, apply online with a lender offering instant approval. Ensure you meet eligibility criteria, have a high credit score, and provide necessary documents. Loans against investments like shares or mutual funds are faster to process than unsecured loans.

What is the minimum salary for a 20 Lakh loan?
There is no minimum salary requirement to avail of a Rs. 20 lakh loan against your investments. Instead, your eligibility depends on the value and type of securities you pledge such as shares, mutual funds, or insurance policies—approved by your lender. As long as your pledged investments meet the lender’s criteria, you can access funds without income-based restrictions.

What is the interest rate for a 20 Lakh Loan per month?
Interest rates for a Rs. 20 lakh loan may vary, depending on the lender and applicant profile. Monthly interest is calculated based on the annual rate, loan tenure, and repayment type. Secured loans offer lower rates than unsecured personal loans.

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