Personal Loan

What Is The Emi For Rs. 20 Lakh Personal Loan?


Personal loans are available from banks and NBFCs for Rs 10,000 to Rs 40 lakh. According to a variety of factors, including existing loan repayment commitments, monthly income, and EMI/NMI ratio—the percentage of net monthly income used to pay off existing EMIs and the EMI of the new loan—individuals applying for personal loans of Rs 20 lakh will have varying EMIs.

Most lenders prefer to grant personal loans to applicants whose overall EMI/NMI ratio (including the EMI of the proposed loan) is between 50 and 55 per cent. The occupation, credit score, and employer’s profile are other criteria that could affect the approval of the personal loan. Additionally, some lenders can offer fast pre-approved personal loans.

What to Consider While Applying for a 20 lakh personal loan?

Here are some factors to consider while applying for a Rs. 20 lakh personal loan.

Credit Score

Lenders examine the credit history and credit score when making a loan application. The loan application would have a lesser probability of being granted if the credit score, as reported by CIBIL or any other credit bureau, is less than 750. On the other hand, candidates with credit scores of 750 or higher are more likely to be approved for personal loans. Moreover, the person can even stand a chance to have reduced interest rates.


A personal loan of Rs 20 lakh has a high EMI requirement. Thus, lenders must make sure that there is a significant income. Also, have enough spare cash to make loan payments on time.


Lenders take the work stability and the characteristics of the employer into account when reviewing the application. Applicants employed by MNCs, reputable corporations, or public sector organisations have higher income stability. So, banks and NBFCs prefer to approve personal loans to them because it lowers the credit risk for the lenders. 

However, for people not a part of the corporate ladder, they need not worry. Lenders consider the entirety of the employment history as well.

Existing Debt Payments:

Lenders often look at the current debt responsibilities when assessing the personal loan application. Most banks and NBFCs approve personal loan applications from borrowers whose combined EMI/NMI ratio (including the EMI for the new loan) is between 50 and 55 per cent. Therefore, those whose EMI/NMI is more than 55% may not be able to obtain a personal loan.

Tentative EMI for Rs. 20 Lakh Personal Loan

Tenure (years)12345
EMI (in rupees)1,76,76393,21665,47751,69143,485

Advantages of a Personal Loan of Rs. 20 Lakh

The popularity of personal loans is due to the lack of end-use restrictions. People may use the loan amount to pay any financial debts.

  • Interest Rate:Most banks and NBFCs offer personal loans starting at 10.49% p.a. The loans can start at a lower interest rate from some Public Sector Unit (PSU) banks.
  • Tenure:Personal loans typically have a five-year payback term. However, certain lenders may extend that time to seven years.
  • Processing Fee:Personal loans typically include processing costs of up to 4%. However, some lenders also waive the processing cost during holiday promotions, subject to a few restrictions.

Requirements for a Rs. 20 lakh personal loan

  • The applicant should be an Indian
  • The age of the applicant should be between 21 and 67
  • A salary of a minimum of Rs. 15,000 every month
  • Salaried people employed by the government, public sector organizations, and reputable private sector businesses are eligible for the loan.
  • Self-employed borrowers of personal loans typically require a minimum of one year of continuous business operations.
  • Typically, applicants with credit scores of 750 or higher have a better probability of being approved for a personal loan.

Top Banks Offering Rs 20 Lakh Personal Loan

The top banks offering 20 lakh personal loans at reasonable interest rates are listed below. The credit score, income, type of work, and relationship with the lender will all affect the interest rate.

BankInterest Rate
Citi BankFrom 10.75% 
ICICI Bank10.75%
Kotak Bank10.75%
Punjab National Bank10.80%
State Bank of India10.55%

Mudra Personal Loan

An Indian government program called Pradhan Mantri Mudra Yojana allows small borrowers to obtain loans. They can take it from banks, MFIs, and NBFCs for up to 10 lakh for non-farm income-generating enterprises. Generally, bank loans up to Rs. 10,000 made under the Micro Small Enterprises program are given without collateral.

Documents Required for Personal Loan

  • PAN card
  • Proof of Address
  • Proof of Signature
  • Proof of identity

For Self-employed

  • Proof of Business
  • ITR for the last 2 years 
  • income computation for the last 2 years with balance sheet and Profit and Loss account 
  • TDS certificate (Form 16A) for declared Income Tax, Income Tax challan, Form 26 AS

For Salaried

  • Last 3 months’ salary slips
  • Last 6 months’ bank statements
  • Form 16 or Income Tax Return 

How to Apply for Rs. 20 Lakh Personal Loan?

Nearly all financial institutions offer the ability to apply for a loan of Rs. 20 lakh online. To quickly receive Rs. 20 lakh in the bank account, go to the desired lender’s official website and follow the instructions there.

Check out this list for simple application instructions for a Rs. 20 lakh personal loan:

  • Enter the personal information on the lender’s website. For this, put a few details. For instance, name, contact information, email address, phone number, income, loan amount, and residence area.
  • Upload the necessary documents, such as proof of address, a photo ID, proof of income, etc.
  • The lender will evaluate the credit rating after carefully reviewing the supplied documents and other information.
  • Following the completion of the loan documents, Rs. 20 lakh will be credited to the bank account if the credit decision is favourable.


A Rs. 20 lakh Personal Loan is easy and hassle-free to obtain. The best thing is that individuals can put the money to any use they choose. So they can finance their children’s academic aspirations. Also, they can take that long overdue trip abroad. They can use a personal loan to combine their debts, including high-interest loans and credit card payments. You can find more information on personal loans here!