
"Need a ₹20 lakh personal loan? Learn how to apply, check EMI options, and understand the eligibility for a 20 lakhs personal loan in our latest blog!"
Published: 25 February 2025
Updated: 24 April 2025
Are you preparing for a wedding, remodeling your house, or experiencing an unexpected financial crisis? Without using your savings, a ₹20 lakh personal loan might help you reach your goals. In India, personal loans are the most widely used types of loans because of their flexibility and quick disbursement. My Mudra, with its simple process, can make your loan experience a hassle-free one. This detailed blog will guide you on everything you may need to learn when applying for a ₹20 lakh personal loan, such as eligibility, requirements for documents, EMI estimates, and useful tips to qualify.
A ₹20 Lakh personal loan is a versatile financial solution for your different needs. Here’s why it could be the right choice for you:
You do not require any asset as collateral to avail a personal loan. It is very useful for those who do not have significant assets but are in urgent financial need.
Thanks to digital banking evolution, getting a ₹20 lakh loan online has become hassle-free. Most banks and NBFCs provide instant approval and disbursal within 24-48 hours.
You can utilise the loan amount for various purposes like financing a wedding, medical bills, higher studies, or even business growth. You are also at liberty to utilise the loan amount whenever you want.
Most lenders provide convenient repayment periods ranging from 1 to 7 years. This provides you with the freedom to choose a repayment plan that is affordable for you with manageable EMIs of your ₹20 lakh personal loan.
By having a good credit record and stable income, you can avail a ₹20 lakh personal loan at reasonable rates of interest. Thus, you can reduce your overall cost of borrowing.
Criteria |
Details |
Age |
21-65 years (varies by lender) |
Income |
Salaried: Minimum ₹30,000/month (differs based on profile) |
Employment Stability |
Salaried: At least 2-3 years of work experience; |
Credit Score |
Minimum 700 (higher scores get better interest rates) |
Debt-to-Income Ratio |
Should not exceed 40% |
To apply for a ₹20 lakh loan, you’ll need the following documents:
Identity Proof: Aadhaar Card, PAN Card, Passport, or Voter ID (any one)
Address Proof: Aadhaar Card, Passport, Utility Bills, or Rent Agreement (any one)
Income Proof:
To prevent approval delays, make sure all documentation is correct and current.
With My Mudra's online platform, you can apply for a ₹20 lakh personal loan. Here you can find major banks like HDFC Bank and SBI. The process is as follows:
1. Visit the My Mudra official website or the app of your preferred lender.
2. Provide your personal details (name, age, income) and specify your loan needs (amount and tenure).
3. Submit scanned versions of identity verification, address verification, income verification, and any other required documents.
4. The lender will conduct a background investigation and assess your details and creditworthiness using advanced algorithms.
5. The funds released will be credited to your bank account in 24-48 hours.
Understanding your EMI is crucial before taking out a large loan like ₹20 lakh. Use a reliable tool like My Mudra’s ₹20 Lakh Personal Loan EMI Calculator to plan your finances effectively.
Example of EMI Calculation for a ₹20 Lakh Loan:
Loan Tenure |
Interest Rate (p.a.) |
EMI Amount |
Total Interest Paid |
Total Repayment Amount |
5 Years |
10% |
₹42,494 |
₹5,49,640 |
₹25,49,640 |
7 Years |
11% |
₹34,903 |
₹9,33,788 |
₹29,33,788 |
10 Years |
12% |
₹28,688 |
₹14,42,560 |
₹34,42,560 |
Pro Tip: Opting for shorter tenures reduces total interest costs but increases monthly EMIs.
Despite the fact that the process of a ₹20 lakh loan is quite flexible with the Internet, there can be some factors which may influence the approval of the loan. The following are some major factors on which most lenders depend while assessing your application for a personal loan.
1.Credit Score
A high score (>750) increases approval chances and fetches lower interest rates. If you pay your debts in a timely manner and have a good payment history, you enjoy a good credit rating and are low risk for lenders.
2. Debt-to-Income Ratio:
Through your debt-to-income ratio, lenders ascertain whether you have adequate balance to manage extra payments for the ₹20 lakhs personal loan. Keep this ratio below 40% to demonstrate financial stability.
3. Employment Stability:
Continuous employment or consistent business income boosts lender confidence and such applications get preference.
4. Existing Liabilities:
If you already have several credits or credit card debts, lenders may be hesitant to approve a ₹20 lakh loan. Avoid any kind of liabilities and try to minimise the existing obligations before applying for any type of personal loan.
5. Loan Tenure:
The duration of the loan is a critical factor when assessing your application for approval. Longer tenures result in lower EMIs, making it easier for lenders to approve a ₹20 lakh personal loan. However, longer tenures result in higher overall interest.
Below are some suggestions that will increase your chances of obtaining a ₹20 lakh personal loan.
1. Keep a credit rating of over 750 by paying bills promptly.
2. Check your credit reports regularly for accuracy and pay off any credit balances.
3. Clear existing debts and maintain minimal liabilities to lower your debt-to-income ratio.
4. Choose longer tenures for lower EMIs if affordability is an issue.
5. Maintain a stable income and job continuity or consistent business revenue. Financial stability is essential.
6. Provide accurate documentation to avoid delays.
7. Apply with co-applicants if possible; this improves eligibility.
Also Read: Personal Loan for 40000 Salary
A ₹20 lakh personal loan can be your financial assistance in times of need. With proper planning and information on eligibility criteria and EMI calculation, you can make your dreams come true. Explore the options today!
To get a personal loan of ₹20 lakh, you must fulfil the eligibility criteria (age, income). You should also have a credit score above 700. With this, you can easily complete the application form online via My Mudra.
Banks such as SBI (10%–15%), HDFC Bank (10%–24%), and ICICI Bank (10%–16%) offer good rates.
You will need proof of identity (Aadhaar), proof of address (utility bill), and proof of income (salary slips/ITRs).