Personal loans under ₹10 Lakhs are a preferred choice for individuals seeking financial flexibility for various needs, including medical emergencies, home renovations, weddings, or even travel. These loans are easily accessible and come with features designed to cater to diverse requirements. In this blog, we’ll dive deep into the top features of personal loans under ₹10 Lakhs, along with useful tips from RupeeQ to help you make informed decisions.
Quick Disbursal
One of the most appealing features of personal loans under ₹10 Lakhs is the speed of processing and disbursal. Many financial institutions disburse the loan amount within 24 to 48 hours of approval, making them ideal for urgent financial needs.
RupeeQ Tip: Opt for digital personal loans facilitated by RupeeQ for an even quicker turnaround. RupeeQ ensures a seamless and paperless application process, saving you time and effort.
Minimal Documentation
Gone are the days of cumbersome paperwork. Personal loans under ₹10 Lakhs typically require minimal documentation, such as proof of identity, address, income, and bank statements.
Why it’s beneficial:
- Saves time during the application process.
- Reduces the hassle of arranging extensive documents.
No Collateral Requirement
Personal loans are unsecured, meaning you don’t need to pledge assets such as property or gold to avail them. This feature makes them accessible to a wider audience.
Who benefits the most:
- Salaried professionals.
- Young individuals starting their careers.
RupeeQ Tip: While no collateral is required, maintaining a good credit score improves your chances of approval at competitive interest rates.
Flexible Repayment Tenure
Personal loans under ₹10 Lakhs often come with flexible repayment tenures ranging from 12 to 60 months. This allows borrowers to select a tenure that aligns with their financial capacity.
How to decide the right tenure:
- A shorter tenure ensures faster repayment but involves higher EMIs.
- A longer tenure lowers EMIs but increases overall interest.
Example – Amit, an IT professional, takes a ₹5 Lakh loan for home renovation. A 2-year tenure means ₹23,000 EMI with ₹52,000 interest, while a 5-year tenure offers ₹10,800 EMI but ₹1,28,000 interest. He chooses based on affordability.
RupeeQ Tip: Use the EMI calculator available on RupeeQ’s platform to simulate various scenarios and choose a repayment plan that suits your budget.
Competitive Interest Rates
Lenders offer competitive interest rates for personal loans under ₹10 Lakhs, especially to individuals with good credit scores. These rates typically range between 10% and 24%, depending on the borrower’s profile.
Factors influencing interest rates:
- Credit score.
- Income stability.
- Loan amount and tenure.
RupeeQ Tip: Check your free credit score on RupeeQ before applying. A higher credit score not only improves approval chances but also helps you negotiate better terms.
Multipurpose Usage
Unlike some loans tied to specific uses, personal loans under ₹10 Lakhs can be used for any legitimate financial need. Whether it’s funding a dream wedding, consolidating debts, or covering medical expenses, personal loans offer unmatched versatility.
Popular uses for personal loans:
- Higher education.
- Business expansion.
- Travel plans.
Prepayment and Foreclosure Options
Most lenders allow prepayment or foreclosure of personal loans, enabling borrowers to repay the loan amount before the end of the tenure. However, some charges may apply.
Benefits of prepayment:
- Saves on interest.
- Reduces financial liability.
RupeeQ Tip: Before opting for prepayment, calculate any additional charges and ensure it is financially beneficial. RupeeQ’s advisors can help you make an informed decision.
Credit Score Improvement Opportunity
For borrowers with average credit scores, personal loans under ₹10 Lakhs can serve as a stepping stone to building a stronger financial profile. Timely EMI payments reflect positively on your credit report.
Steps to improve credit score:
- Pay EMIs and credit card bills on time to avoid negative impact on your score.
- Keep your credit utilization below 30% of your total credit limit.
- Avoid multiple loan applications to prevent hard inquiries on your credit report.
- Check your credit report regularly for errors and discrepancies.
- Maintain a healthy credit mix of secured and unsecured loans.
- Keep old credit accounts active to build a strong credit history.
Example – Priya, a marketing professional, had a credit score of 620 due to missed payments on her previous loan. She took a personal loan of ₹50,000 and ensured timely EMIs. Within a year, her credit score improved to 720, making her eligible for better financial products.
RupeeQ Tip: Start with a smaller loan amount and build your credit history through consistent repayments. RupeeQ provides tailored offers to suit such needs.
Accessibility to First-Time Borrowers
Personal loans under ₹10 Lakhs are an excellent option for first-time borrowers with limited or no credit history. Lenders often consider income stability and employment details in such cases.
How first-time borrowers benefit:
- Opportunity to establish creditworthiness.
- Financial aid without stringent credit requirements.
Transparent Terms and Conditions
Personal loans come with clear terms regarding interest rates, repayment tenures, and charges. Borrowers are fully informed about their obligations before signing the loan agreement.
Important terms to check:
- Processing fees.
- Late payment penalties.
- Prepayment, Part-payment or foreclosure charges.
Conclusion on Features of Personal Loans Under ₹10 Lakh
Personal loans under ₹10 Lakhs offer a convenient and reliable way to address financial needs without placing undue strain on your finances. With features like quick disbursal, flexible tenures, and minimal documentation, these loans empower borrowers to manage life’s expenses effortlessly.
At RupeeQ, we make the process even simpler with a user-friendly platform, personalized loan offers, and expert tips to guide you every step of the way. Whether you’re applying for your first loan or exploring better financial options, RupeeQ is your trusted partner in securing the best deals.
Apply for a personal loan today and take charge of your financial journey with RupeeQ
