"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: 8 March 2025
In this era, financial emergencies can arise at any point in time. Whether it is related to weddings, higher education, medical, or any other issues, a personal loan of 20 lakhs can be a solution to meet your expenses. Personal loans are the most popular types of loans in India due to their flexibility and quick disbursement. With technological advancement and digital banking, attaining ₹20 lakhs personal loan online has become a more accessible, faster, and hassle-free process. My Mudra with its simple process can make your loan experience an easy one. With a few steps, you fill out the application and get your loan approved. Now your financial journey is a stress-free voyage.
A ₹20 Lakh personal loan is an amount that can fulfill your different needs. Here are some reasons why you might consider opting for a personal loan of 20 lakhs.
You do not require any asset as collateral to avail loan. It is very useful for those who do not have assets but are in financial need.
The application for a 20 lakh personal loan has become a simple process with online platforms. Many banks and NBFCs offer instant approval and disbursal of loans, often within 24 to 48 hours.
A 20 lakh loan can be used for different financial needs. Whether you want to spend the amount on wedding, travel, medical expenses, or expanding your business, you are free to use the loan amount whenever you need it.
Most of the financial institutions give flexibility of tenure while you are planning to repay the loan amount. It allows you to choose a repayment schedule that fits your budget and ensures that your ₹20 lakh personal loan EMIs are manageable.
With a good credit score and stable income, you are liable to secure a ₹20 lakh personal loan at competitive interest rates. This can reduce your cost of borrowing and make your EMIs manageable.
Now that you understand the benefits of competitive interest rates, let's explore the steps to apply for a 20 lakh personal loan.
Here is the step-by-step process of how to get ₹20 lakh personal loans approved online.
If you are planning to take a personal loan of ₹20 lakh, then you should first know whether you’re eligible for it or not. As the eligibility criteria tend to differ from one financial institution to another, here is a general list of requirements that you should meet if you are planning to apply:
The next step is to gather the documents needed by the lender to assess the applicant's profile.
The next step is that when you gather all such documents, then you can get a loan of 20 lakh just by sitting at your home. For that, most of the banks and NBFCs have official websites or mobile apps where you can apply from the comfort of your home. Here are the steps to apply for a ₹20 lakhs personal loan through My Mudra.
1. Visit the My Mudra Website: One can go to the official website of the My Mudra.
2. Application Form: Fill out the form with your personal and financial details.
3. Attach Copies of Relevant Documents: Applicant needs to attach copies of all the documents, identity proof, address proof, and income proof.
4. Details Verification: As soon as the applicant attaches all documents required he should ensure that the details and the documents that have been shared are accurate.
5. Application Submission: Submit the application and wait for the approval.
Status tracking through the Internet is available with most lenders. It is now possible to check on the status of the loan application and even get information related to the approval status and disbursement.
After submitting this application, the lender will carry out the background check that includes your credit score, employment status, and other relevant factors. If everything is okay, you will get instant approval for the loan, and the personal loan of 20 lakh will be debited from your bank account within 24-48 hours.
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. Following are some major factors on which most lenders depend while assessing your application for a personal loan.
One of the biggest factors that have a greater impact on whether the lenders will approve or reject your personal loan of 20 lakhs is your credit score. It means paying off your debts on time and maintaining a good record of payment means that you have a good credit score and a low risk to lenders.
To achieve this, lenders will inspect the debt-to-income ratio in order to make sure that the borrower meets the required financial qualification that will enable him or her to pay back the borrowed amount. This can be done in a simple way whereby your total of the monthly installment for your debts is divided with your monthly earnings. From the results of debt to income, one is likely to get that he or she has an adequate balance that would allow one to manage extra payments for the ₹20 lakhs personal loan.
The lender also gives preference to the applications that have stable employment and regular income. For salaried employees, he should be in continuous employment for at least two or three years with the same employer to boost his/her online application. In the case of self-employed applicants, the consistency of business returns for the past few years improves the chances of favourable terms.
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 minimize the existing obligations at the time of going for any type of personal loan.
The duration of the loan is a critical factor when assessing your application for approval. This is because longer tenure lowers the EMI which makes it easy for lenders to approve a ₹20 lakhs personal loan. However, it’s important to note that longer tenures result in higher overall interest payments.
The following are some tips that can help you improve your chances of securing a ₹20 lakhs personal loan.
A credit score of 750 or higher holds the borrower in favourable terms, hence a plus point for any borrower. Credit reports should be monitored regularly for accuracy, and if any credit balances, then it should also be settled on time.
Eliminate the debts. Keep your debt-to-income ratio high through payoff. This is why lenders recommend that borrowers maintain minimal liabilities to ensure that the ₹20 lakh loan can be quickly repaid.
Based on these factors, longer tenures can result in lower EMIs.This makes it easier for lenders to approve the loan application.
Stable income and job continuity are essential. Lenders prefer applicants with a stable income, whether from the same employer or consistent business revenue for self-employed individuals over the past 2-3 years.
Make sure your identity proof, income verification, and bank statements are current and accurate. Any mistakes can slow down the approval process for your loan.
Also read: Apply for a ₹5 Lakh Personal Loan with Flexible EMIs
