Introduction
A personal loan is one of the fastest ways to arrange money for big needs like medical bills, weddings, home renovations, or debt consolidation. But before applying, it’s important to know two key things: your monthly EMI and the income eligibility required.
In this guide, we’ll explain everything about a ₹12 lakh personal loan—from EMI calculations to income requirements, interest rates, and repayment tips.
What is a ₹12 Lakh Personal Loan?
A personal loan of ₹12 lakh is an unsecured loan offered by banks and NBFCs without any collateral. It comes with a fixed repayment tenure, usually between 1 to 7 years, and is repaid through monthly EMIs (Equated Monthly Installments).
This amount is suitable for:
- Big weddings or family functions
- Overseas education or relocation
- Medical emergencies
- Business expansion or setup
- Travel and luxury purchases
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EMI for ₹12 Lakh Personal Loan
The EMI depends on three major factors:
- Loan Tenure (time you take to repay)
- Rate of Interest (varies from 9% to 20% annually)
- Loan Amount (₹12 lakh in this case)
Example:
- If the interest rate is 10.5% and tenure is 5 years, the EMI will be around ₹25,800 per month.
- For the same loan at 7 years tenure, the EMI reduces but the total interest paid increases.
Tip: Always use a personal loan EMI calculator before applying.
Income Eligibility for ₹12 Lakh Loan
Banks check your monthly income before approving a ₹12 lakh loan. On average, lenders expect:
- Salaried Employees: Minimum monthly income of ₹35,000–₹50,000 depending on city and employer profile.
- Self-Employed Individuals: Proof of business income, ITR, and financial stability.
Other factors include:
- Good CIBIL Score (750+)
- Stable job/business history
- Low existing debts
Interest Rates for ₹12 Lakh Loan
The interest rate varies by lender. Here’s a general range:
- Public Sector Banks: 9% – 12%
- Private Banks: 10% – 16%
- NBFCs: 12% – 20%
A higher credit score can help you get a lower interest rate.
Documents Required
To apply for a ₹12 lakh personal loan, you’ll need:
- Identity Proof (Aadhaar, PAN, Passport)
- Address Proof (Utility bill, Rent agreement)
- Income Proof (Salary slips, Bank statements, ITR for self-employed)
- Recent Passport-size photographs
Best Tips to Get Approval Quickly
- Maintain a good credit score (above 750).
- Avoid multiple loan applications at the same time.
- Choose the right tenure—longer tenure means lower EMI.
- Apply with your salary account bank for higher approval chances.
Pros of Taking a ₹12 Lakh Personal Loan
- Quick processing and fast disbursal
- No collateral required
- Can be used for any purpose
- Flexible repayment tenure
Cons You Should Know
- Higher interest compared to secured loans
- Missing EMI can affect credit score
- Processing fees & charges may apply
FAQs
Q1. What is the minimum salary for a ₹12 lakh personal loan?
A: Usually around ₹35,000–₹50,000 per month depending on the bank.
Q2. How long can I take to repay a ₹12 lakh loan?
A: Most banks allow 1 to 7 years repayment tenure.
Q3. What will be the EMI for ₹12 lakh?
A: At 10.5% interest for 5 years, EMI is about ₹25,800. The EMI changes based on tenure and interest rate.
Q4. Can I apply for a ₹12 lakh loan with a low credit score?
A: Possible with NBFCs, but interest rates will be much higher.
Q5. Which bank is best for ₹12 lakh loan?
A: SBI, HDFC, ICICI, and Axis Bank offer competitive interest rates.
Disclaimer: This article is for general information only. The interest rates and terms mentioned in it depend on the policies of the bank . These may change from time to time. Before taking any type of loan, get complete information from your bank.