Do you need cash in a hurry? It might be for a small home repair, a medical bill, or to fund a big celebration. For purposes such as these, a personal loan up to 1.5 lakh can be quite handy. That’s a really popular loan amount because it’s not too big and it can be used for pretty much everything.
But a loan is a major responsibility, so you must be certain it’s the correct decision. Here in this blog, we are going to discuss who that perfect person is, who can apply for a personal loan up to 1.5 lakh, and what they can use it for.
1. The Ideal Person for a Loan of This Size
A lender looks at a few things to decide if a person is a good borrower. While every lender has their own rules, here are some things that make you a great person to get a loan of this size:
- A Stable Income: Lenders want to see that you have a regular source of money coming in. This shows them that you can pay back the loan every month. You don’t have to have a very high salary, but a steady income is very important. For instance, a monthly salary of ₹20000–25000 is frequently sufficient to secure a loan of this amount.
- A Good Credit Score: Your credit score is like a report card for your money history. It tells a lender how you have paid your bills and other loans in the past. A score above 750 is considered very good and will help you obtain a loan with ease and get excellent interest rates.
- A Good Age and Job: Lenders look at your age (usually between 21 and 65 years old) and your job. Being employed stably for at least a year or two allows them to see that you’re dependable.
- Not Too Much Other Debt: If you already have many other loans, a new lender might be worried that you cannot handle a new monthly payment. This is called your “debt-to-income” ratio. It is best to have this ratio low, so you can easily pay your new loan’s EMIs.
2. The Best Times to Use a Loan Up to ₹1.5 Lakh
This amount is very useful because you can use it for many different things. It’s a great option for a time when you need money for a specific purpose but don’t want to use your savings.
- Home Renovation or Repair: Looking to paint your house or fix up your kitchen? This loan amount is just right for that. It can help you make small repairs around the house or buy new furniture and appliances.
- Consolidating Debt: You can get a personal loan of up to 1.5 lakh to pay off all of your small loans or credit card bills with high interest rates. You will only have to worry about one loan, and the interest rate should be lower, which will make the whole thing cheaper for you.
- Medical Emergency: Life is full of surprises. A sudden medical bill can be very stressful. A loan of this size can be a lifeline in a medical emergency. It can help you pay the bills quickly so you can focus on getting better.
- Weddings and Vacations: Do you want to take a trip or plan a wedding? A loan of this amount is a great way to fund these special events without using up all your savings.
3. Why This Loan is a Smart Choice
Choosing a personal loan of up to 1.5 lakh can be a very smart move because it has a lot of good things going for it.
- No Collateral Needed: This type of loan is usually “unsecured.” This means you don’t have to put up anything like your house or gold as a guarantee. The lender gives you the loan based on your financial strength.
- Quick and Easy Process: Many lenders offer a fast and easy online process. You can apply from your phone and get the money in your bank account in a short time. This is a big plus for a loan of this size. For a small need, like a ₹2,000 loan, you can get the money very fast. Personal loans up to 1.5 lakh are also very quick.
- Flexible Repayment: You are able to select a plan for repaying the loan. You can choose how many months you would like to have to repay the loan so that your monthly payment is affordable for your budget. A company like Stashfin offers many flexible plans to help you.
FAQs
Q1. What is the minimum salary needed to get this loan?
The minimum salary can change from one lender to another and from one city to another. But in general, a monthly salary of around ₹15,000 to ₹25,000 is often the minimum requirement.
Q2. Does a personal loan of ₹1.5 lakh affect my credit score?
Yes, it does. Your credit report will show that you applied for the loan and paid the EMIs. If you make all your payments on time, it will help you build a great credit score.
Q3. Is a personal loan better than a credit card for an emergency?
For a big expense, a personal loan is often better. A personal loan usually has a much lower interest rate than a credit card, which can save you a lot of money.
Q4. Can I get a loan if I am a self-employed person?
Yes, many lenders give loans to self-employed people. They might ask to see your bank statements or your income tax return to check your income.