A personal loan of ₹2 Lakhs can be a financial lifeline for individuals seeking immediate funds to meet various expenses, such as unexpected medical bills, home renovations, or debt consolidation. These loans offer several attractive features and benefits that make them a popular choice among borrowers.

personal loan

Features of a ₹2 Lakh Personal Loan

  • Loan Amount: You can borrow up to ₹2 Lakhs, depending on your personal loan eligibility and creditworthiness.
  • Flexible Repayment Tenure: It ranges from 12 to 72 months. Select a tenure that suits your financial situation.
  • Competitive Interest Rates: Get competitive interest rates based on your credit score and other financial factors.
  • Quick Approval and Disbursal: Enjoy a hassle-free application process with quick approval and disbursal of funds within days.
  • Minimal Documentation: Submit minimal documentation, such as identity proof, address proof, and income statements.

Benefits of a Personal Loan of ₹2 Lakhs

  • Unsecured Loan: Personal loans are unsecured, meaning you don’t have to pledge any collateral as security.
  • Versatile Use:Use the loan proceeds for any personal expense, including medical bills, home repairs, travel, or debt consolidation.
  • Improve Credit Score: Making timely loan repayments can help you improve your credit score and increase your financial credibility.
  • No Prepayment Penalty: Prepay your loan at any time without incurring any penalty charges.
  • Convenient EMI Option:Pay back the loan in convenient equated monthly instalments (EMIs) that fit your budget.

EMI Calculator for a ₹2 Lakh Personal Loan

To estimate your monthly EMI, you can use an online EMI calculator. Simply enter the loan amount (₹2 Lakhs), interest rate (assume 12% for illustrative purposes), and repayment tenure (12-60 months). For example, if you borrow ₹2 Lakhs at 12% interest for 24 months, your monthly EMI would be Rs. 10,348.

Interest Rates

Interest rates for personal loans vary depending on your credit score, income level, and other factors. Typically, borrowers with a good credit score can secure lower interest rates. Indicative interest rates for a ₹2 Lakh personal loan can range from 10% to 15%.

Personal Loan Eligibility Criteria

Before applying for a personal loan, it is essential to go through the criteria required to be eligible. So, ensure you are prepared for the same. Here are some of the common parameters needed to qualify for the loan. 

  • Indian resident
  • Minimum age of 21 years
  • Regular source of income (salaried or self-employed)
  • Minimum income as per lender’s requirements
  • Good credit score (typically above 750)
  • Clear repayment history on existing loans

What Affects Personal Loan Interest Rates

Personal loan interest rates are influenced by various factors that reflect the borrower’s creditworthiness and market conditions. 

Firstly, credit score plays a pivotal role, with higher scores typically resulting in lower interest rates. Lenders use credit scores to gauge your likelihood of repayment, offering lower rates to those deemed less risky.

Income and employment stability are also crucial determinants. Higher incomes and stable employment histories suggest a lower risk of default, prompting lenders to offer lower rates.

Loan term length and amount borrowed affect interest rates as well. Longer terms or larger loan amounts may incur higher rates due to increased perceived risk for lenders.

Market conditions, such as overall economic stability and prevailing interest rates, impact lenders’ cost of funds and subsequently the rates they offer.

Additionally, lenders may consider factors like existing debt obligations, the purpose of the loan, and your relationship with the lender when setting interest rates.

By understanding these factors, you can better position themselves to secure favorable interest rates on personal loans, potentially saving money over the life of the loan.


A ₹2 Lakh personal loan can provide quick and convenient access to funds for various personal expenses. With its flexible features, competitive interest rates, and minimal documentation, it’s an attractive option for borrowers seeking financial assistance. However, carefully consider your eligibility, repayment capacity, and interest rates before applying for a personal loan to ensure you can meet your monthly EMI obligations and avoid financial strain.