Get ₹20 Lakhs Personal Loan with Low Interest Rates

"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!"

20 Lakhs Personal Loan
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Anjali Singh

6 mins read

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.

Why consider a Personal Loan of 20 Lakhs

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.

1. No collateral required

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.

2. Quick and hassle-free disbursal

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.

3. Flexible Usage

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.

4. Tenure Flexibility

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.

5. Competitive Interest Rates

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.

Steps to Apply for a ₹20 Lakhs Personal Loan

Here is the step-by-step process of how to get ₹20 lakh personal loans approved online.

Step 1: Be Sure, You Meet the Requirements

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:

  • Age: The age of the applicant should be between 21 and 60 years.
  • Income:Salaried applicants must have a minimum salary of 22000 per month & Self-employed must have regular income from the Business.
  • Employment Stability: At least 2 to 3 years of work experience are required for a salaried applicant whereas; the self-employed business may need to provide at least 5 years of continuity in the same business.
  • Credit Score: A credit score of at least 700 is needed for a personal loan of 20 lakhs. If the credit score is high, it means you have a higher chance of getting approval for a loan as well as a lower interest rate with favourable terms.

Step 2: Documents that have to be submitted

The next step is to gather the documents needed by the lender to assess the applicant's profile.

  • Identity Proof: Any one of the following IDs can be provided as identity proof – Aadhaar Card, PAN Card, Passport, or Voter ID Card.
  • Address Proof:Aadhaar Card, Passport, Utility Bills, or Rent Agreement (Anyone)
  • Income Proof: For the salaried persons they have to provide the salary statements for the last three to six months, in the case of the self-employed persons they must provide ITR (Income Tax Returns), and statements of the bank for the last 6 to 12 months.

Step 3: Apply Online to get ₹20 lakh loan

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.

Step 4: Application Tracking

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.

What determines your ₹20 Lakhs Personal Loan Approval

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.

1. Credit Score

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.

2. Debt-to-Income Ratio

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.

3. Employment Stability

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.

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 minimize the existing obligations at the time of going for any type of personal loan.

5. Loan Tenure and Amount

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.

Ways to Boost the Probability of Approval of ₹20 Lakhs Personal Loan

The following are some tips that can help you improve your chances of securing a ₹20 lakhs personal loan.

1. If you plan to borrow, you should have a good credit score

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.

2. Reduce Existing Debt

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.

3. Credit conditions (loan amount, interest rate, and loan tenure)

Based on these factors, longer tenures can result in lower EMIs.This makes it easier for lenders to approve the loan application.

4. Stable Income

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.

5. Correct Documentation

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

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Anjali Singh Assistant Manager
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Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.

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