How Much Is the EMI for an INR 10 Lakhs Personal Loan Over 5 Years?

When you take out a personal loan, your EMI (Equated Monthly Instalment) is one of the first things you’re likely to focus on. And for a loan amount as substantial as INR 10 lakhs, it’s essential to understand how the repayment will fit into your monthly budget.

Whether you're planning to consolidate debt, cover unexpected expenses, or finance a major purchase, knowing the INR 10 lakhs loan EMI for 5 years can help you make an informed decision.

This article breaks down what to expect when applying for INR 10 lakhs, including how to calculate EMI, the eligibility requirements, and the application process.

What Is a Personal Loan?

A personal loan can help you cover a wide range of expenses, including weddings, travel, medical emergencies, debt consolidation, home renovations, or higher education. These loans are typically unsecured, meaning you don’t need to pledge any assets like a car or property.

The personal loan tenure usually ranges from 12 to 60 months, giving you the flexibility to choose a repayment period that suits your financial situation. Understanding the factors affecting your loan EMI, such as the interest rate, loan amount, and tenure, can help you plan effectively. This is especially useful when creating a 5-year EMI plan to manage your monthly outflows more efficiently.

Features and Benefits of Personal Loan for INR 10 Lakhs for 5 Years

Here are some more features and benefits to consider:

• Competitive Interest Rates: Applicants with strong credit scores (typically above 750) are more likely to qualify for lower interest rates, reducing the overall cost of borrowing.
• 100% Paperless Application: You can apply online from the comfort of your home, with minimal documentation and no need for physical paperwork.
• Prepayment Options: You may choose to repay the loan early, subject to lender-specific policies and prepayment charges.
• Improved Credit Mix: Adding a personal loan to your credit portfolio can improve your credit mix, which may positively influence your credit score when managed responsibly.

How to Calculate EMI of an INR 10 Lakhs Personal Loan

You can calculate your monthly outgo using our personal loan EMI calculator. Let’s understand how this works with an example.

Suppose you’re borrowing INR 10 lakhs for a tenure of 5 years (60 months) at an interest rate of 13% per annum. When you enter these details into the calculator, you will instantly see the following results:

• EMI ≈ INR 22,753
• Total Interest Payable ≈ INR 3,65,184
• Total Amount Payable ≈ INR 13,65,184

You would also see a loan amortisation schedule, which gives you a month-by-month breakdown of how much of each EMI goes towards the principal and how much covers the interest. This EMI breakup detail will help you visualise how your repayment evolves over the loan tenure.

It should be noted that while longer tenures reduce the monthly EMI burden, they typically result in higher overall interest costs. Conversely, shorter tenures can reduce the total interest paid but increase your monthly EMI. You can experiment with different tenures and interest rates on the calculator to understand how they affect your EMI, total interest outgo, and repayment amount.

Knowing your INR 10 lakhs personal loan EMI in advance can help you plan your finances more effectively and ensure timely repayment.

Eligibility Criteria for an INR 10 Lakhs Personal Loan

Eligibility requirements vary between lenders. The following are the basic criteria for an SMFG India Credit personal loan:

• Age: Salaried individuals should be between 22 and 65 years of age. Self-employed individuals should be between 25 and 65 years old. Age must not exceed 65 at the time of loan maturity.

• Income: Salaried individuals should have a minimum monthly income of INR 20,000 (INR 25,000 for Delhi/Mumbai residents). For self-employed individuals, the minimum annual turnover or the yearly profit after taxes will be considered.

• Credit Score: A minimum credit score of 750 is required.

• Citizenship: The applicant must be an Indian resident.

• Work Experience: Salaried applicants should have at least 1 year of total work experience, including a minimum of 6 months in the current job. Self-employed applicants should have a business that has been operational for at least 3 years.

Documents Required for an INR 10 Lakhs Personal Loan

For a smooth application and quicker processing, keep the following documents ready:

• Identity and address proof documents like PAN Card, Aadhaar Card, Passport, Voter ID, Driving Licence, or Utility Bills.
• Income proofs like salary slips and Form-16 for the salaried; balance sheet, profit and loss accounts, and income computation for the self-employed.
• Bank statements for the past 6 months.
• If you are self-employed, you’ll be required to produce business proof such as a registration certificate and a business licence.

Reasons to Choose an INR 10 Lakhs Personal Loan for 5 Years

There are several planned or unplanned scenarios where an INR 10 lakhs personal loan for a 5-year tenure can be helpful:

• Medical Emergencies: Cover surgeries, hospitalisation, or long-term treatment without disrupting savings.
• Debt Consolidation: Combine multiple high-interest debts into a single EMI, potentially at a lower interest rate.
• Home Renovation: Upgrade furniture, meet the expenses of repair, or install modern appliances.
• Higher Education: Finance your child’s or your own higher education, whether in India or abroad.
• Wedding Expenses: Manage the costs of the venue, catering, decoration, and more.
• Travel or Relocation: Fund much-awaited holidays or the expenses involved in moving to a new city.

How to Apply for an INR 10 Lakh Personal Loan for 5 Years

To apply for a personal loan of INR 10 lakhs at SMFG India Credit, kindly follow these steps:

1. Submit Basic Information

Enter your mobile number, PAN, pincode, and employment status (salaried or self-employed).

2. Mobile Number Authentication

Receive and enter a 6-digit OTP for mobile number verification.

3. Provide Additional Information

Supply more details such as email address, date of birth, gender, and annual household income. Complete the required email ID verification.

4. Enter Employment Details

Salaried applicants need to provide employment information.

5. Bank Statement Submission

Please submit your bank statement through Net Banking, an Account Aggregator, or by uploading it. We will use this information to generate a loan offer (only applies to salaried employees).

6. Verify Your Identity

Verify identity and share address details through well-known digital methods such as CKYC, Offline Aadhaar XML-based KYC, and DigiLocker. You need to take a selfie to complete the identity verification process.

7. Proceed With Bank Account Submission

Provide your bank information for verification by us.

8. Provide Additional Information

After bank account verification, you will be directed to add some more details like the loan purpose and marital status in the ‘Additional Details’ section.

9. Choose Re-payment Mode and Finalise E-NACH
   Select your re-payment method (debit card or internet banking) and set up E-NACH.

10. Review and Sign the Loan Agreement

Go through the loan agreement carefully, digitally sign it, and validate the process using the OTP sent to your registered mobile number.

Conclusion

Taking a personal loan is an important financial decision that requires careful consideration. By understanding the INR 10 lakh loan EMI for 5 years, along with the eligibility criteria and documentation requirements, you can make a well-informed choice. With responsible planning and timely repayments, a personal loan can serve as an effective financial solution for various needs.

At SMFG India Credit, you can access personal loans of up to INR 30 lakhs* with interest rates starting from just 13%* per annum. Check your eligibility, estimate your EMIs, and apply online with ease.