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Rs 5 Lakh Personal Loan

Home Personal Loan ₹ 5 Lakh Loan

When short of funds, you can use a Rs 5 lakh personal loan, to meet needs like wedding or education expenses, travel plans or any emergency requirement. In this guide, we’ll help you with everything you need to know about applying for a Rs 5 lakh personal loan - including interest rates, EMI calculations, eligibility criteria and required documents.

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Updated: 11-04-2025 13:02:38 PM

First, if you’re planning for any kind of loan, you must compare all offers available to you and choose the best and most-suited one. It’s important to check eligibility, understand the EMI structure, along with fees and charges to make a more informed decision before you finalise your application.

At Paisabazaar, you can see, compare and apply for the best personal loan offers from India’s top lenders like HDFC Bank, ICICI Bank, Axis Bank, IDFC FIRST Bank, Kotak Mahindra Bank, IndusInd Bank, Tata Capital, etc. We have seamless digital processes and also, experts who would assist you through the entire process if you need help or have concerns, ensuring a happy and hassle-free experience.

How to get a Rs 5 Lakh Personal Loan Instantly

You can access a personal loan of Rs 5 lakhs seamlessly, through pre-approved loan offers. Most lenders provide pre-approved personal loans or instant loan offers to select customers with a strong credit history. These loans are processed digitally and are often disbursed within minutes. For example, HDFC Bank offers instant loan disbursal of up to Rs 40 lakhs in 10 seconds for its eligible customers.

At Paisabazaar, we have pre-approved loans from Axis Bank, Hero Fincorp, Aditya Birla Capital, IndusInd Bank, Moneyview, etc.

Interest Rates

The personal loan interest rates usually start from 10.50% p.a. onwards with some public sector banks offering lower interest rates, usually to their own customers. The final interest rate will depend on the risk-based pricing models followed by the lender and the credit profile of the applicant. If you have an existing relationship with a public sector bank, do check if it has any personal loan offer for you, as it may come with a lower rate of interest.

Public Sector Banks Offering Personal Loans at Low Interest Rates

Lender Interest Rates (p.a.) Loan Tenure Processing Fees
Bank of Maharashtra 9.75%-14.55% Up to 7 years Up to 1% of the loan amount (Max. Rs 15,000)
Indian Bank 9.85%-15.25% Up to 7 years Up to 1% of the loan amount
 SBI 10.30%-15.30% Up to 7 years Up to 1.50% of the loan amount (Min. Rs 1,000; Max. Rs 15,000)
Canara Bank 10.70%-16.15% Up to 7 years Up to 0.50% of the loan amount (Rs 1,000 to Rs 5,000)- 50% off on processing fee
Indian Overseas Bank 10.75%-14.00% Up to 7 years Up to 0.75% of the loan amount

Private Sector Banks Offering Personal Loans at Low Interest Rates

Lender Interest Rates (p.a.) Loan Tenure Processing Fees
Bandhan Bank 9.47% onwards Up to 5 years Up to 3% of the loan amount
IndusInd Bank 10.49% onwards Up to 7 years Up to 3.5% of the sanctioned loan amount
ICICI Bank 10.85%-16.65% Up to 6 years Up to 2% of the loan amount
HDFC Bank 10.90% to 24.00% Up to 6 years Up to Rs 6,500
Kotak Mahindra Bank 10.99% onwards Up to 6 years Up to 5% of the loan amount

EMI for Rs 5 lakh Personal Loan for 1-5 Year Tenures

Have a look at the EMI for a Rs 5 lakh loan at 11.00% p.a. interest for different tenures:

Tenure EMI Total Interest Total Payable
1 year Rs 44,191 Rs 30,290 Rs 5,30,290
2 years Rs 23,304 Rs 59,294 Rs 5,59,294
3 years Rs 16,369 Rs 89,297 Rs 5,89,297
4 years Rs 12,923 Rs 1,20,293 Rs 6,20,293
5 years Rs 10,871 Rs 1,52,273 Rs 6,52,273

Lower EMI or Lower Interest Cost?

As the loan tenure increases, the EMI decreases, making repayment more manageable. For instance, EMI decreases from Rs 44,191 (1-year tenure) to Rs 10,871 (5-year tenure). While longer tenures lower your EMI, they significantly increase the total interest paid. For a 5-year loan tenure, you end up paying Rs 1.52 lakh as interest – more than 5 times the interest paid on a 1-year loan tenure (Rs 30,290). This is because interest is compounded over a longer period.

How To Choose Optimum Tenure

Borrowers with adequate repayment capacity can opt for shorter tenures to save on interest, while those with limited repayment capacity can choose longer tenures and prepay when they have surplus funds. However, prepayments should not come at the cost of essential financial goals and monthly contributions. Some lenders may require borrowers to repay a predetermined number of EMIs before allowing prepayments or foreclosures. Thus, one should carefully compare the prepayment fees and prepayment-related restrictions of multiple lenders. Note that fixed-rate loans have no prepayment penalties.

How do I apply for a Rs 5 Lakh Personal Loan at Paisabazaar?

Here’s a step by step guide for applying for a Rs 5 lakh personal loan at Paisabazaar:-

Step 1: Visit Paisabazaar on web or app

Step 2: Enter your mobile number in the application form

Step 3: Fill in your personal details

Step 4: Enter OTP to verify your mobile number

Step 5: Select the loan amount and loan purpose

Step 6: Check and compare the available offers from multiple banks and NBFCs and apply for the best-suited personal loan

Fees and Charges

Below are the range of some personal loan fees and charges charged by various lenders:

Types of Charges Charges
Processing Fees 0.5% to 4% of the loan amount
Stamp Duty Charges As per actuals
EMI/Cheque Bounce Around Rs 400 per bounce
Prepayment and Foreclosure Charges 1%-5% of the outstanding loan amount
Legal Fees As per actuals
Late Payment Penalty 1%-2% p.a. on the EMI overdue amount

Other fees and charges levied by most banks and NBFCs include verification charges, documentation charges, NOC certificate charges, cheque/ECS swap charges and duplicate statement charges.

Eligibility Criteria: Salary, Credit Score

The eligibility criteria for a Rs 5 lakh personal loan vary depending on the lender’s credit risk policies, loan type, and the applicant’s occupation. Below are the general personal loan eligibility criteria considered by most lenders before loan approval:

  • Age: 18 to 60 years.
  • Credit Score: Usually 750 or higher, as a higher credit score increases the chances of loan application approval.
  • Income: Usually lenders need a minimum in-hand monthly income of Rs 15000 for any personal loan. But, if you need a Rs 5 lakh personal loan, some lenders may have a higher income eligibility criterion.
  • Business Continuity: Usually 3 years of continuous business operation, though some lenders may require a longer duration.
  • Employment Type: Salaried employees working in government, public sector undertakings, MNCs, or reputed corporates.
  • Employment Stability: Usually minimum 1 year with some banks/NBFCs requiring more work experience.

Documents Required

The following are the general personal loan documents required by most lenders:

  • Identity Proof: Aadhaar Card/PAN Card/Passport/Voter ID
  • Address Proof: Aadhaar/Electricity Bill/Passport
  • Income Proof: Salary slips (last 3 months) or ITR for self-employed
  • Bank Statement: Last 6 months
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FAQs on Rs 5 Lakh Personal Loan

How to get a Rs 5 lakh personal loan?

Applicants can reach out to banks and NBFCs or apply through Paisabazaar.com. These platforms allow applicants to compare the interest rates and other personal loan features offered by multiple banks/NBFCs and choose the best personal loan option available on their credit score, monthly income, employment profile, etc.

What is the interest rate for Rs 5 lakh personal loan?

Lenders usually offer personal loan at interest rates starting from 10.50% p.a. depending on the credit profile of their loan applicants. However, some public sector banks offer personal loan at lower interest rates.

Is a CIBIL score of 650 enough for a Rs 5 lakh personal loan?

Lenders usually consider applicants having credit scores, usually from CIBIL, of 750 and above as they are viewed as financially disciplined and, thereby, have lower chances of loan defaults. With a low credit score, not all lenders would offer you a loan, especially for Rs 5 lakh. Some NBFCs may offer you a loan of Rs 5 lakh or less, but at a high rate of interest.

What is the maximum repayment tenure for a personal loan?

The repayment tenure of personal loans is usually up to 5 years, but some lenders, such as SBI and Bank of Baroda, offer longer tenures of up to 7 years.

Can I apply for a personal loan jointly with my spouse?

You can apply for a personal loan jointly with your spouse, to improve your loan eligibility and approval chances. But both of you need to be eligible for the loan and also, the obligation to repay the loan would lie with both co-borrowers.

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