How to get a 1 lakh personal loan? Interest rates and eligibility explained

Short-term funding can allow you to jumpstart your management on a huge bill, or cover an unexpected financial obligation. As an example, a personal loan of ₹1 lakh can be an ideal option—whether you're consolidating your debts, renovating your house or facing a medical emergency.

In this article, we cover everything you need to know about applying for a personal loan of ₹1 lakh. 

Personal loans

A personal loan is an unsecured type of credit; therefore, if you get a personal loan, you do not need to attach it to any security, like your car or house. The flexibility of a personal loan (it can be used for anything - to deal with emergencies, to fund travel, pay for college tuition, or to meet any other personal financial need), makes it even more attractive.

Personal loan features

• Interest rates: These are lender-specific, but begin at around 10.49% per annum.
• Tenure of repayment: Typically up to five years.
• No collateral is required: No security is required to be provided.
• Processing fees: It may comprise up to 2.5 percent of the loan balance.
• Flexible usage: Almost any usage is possible except speculative endeavours.

Eligibility criteria on 1 lakh personal loan

To be eligible for a personal loan, you must fulfil the following requirements:

• Nationality: Indian citizen.
• Age: Between 21 years to 80 years.
• Type of employment: Salaried employee or self-employed.
• Credit score: Your credit score should be more than 685.

Documents required on 1 lakh personal loan

1) Salaried individuals

• Identity proof: Driver's license, Aadhaar card, or PAN card.
• Address proof: Aadhaar card, Utility bill, or PAN card.
• Income proof: Salary slips, ITR, and bank statement.

2) Self-individual

• Income proof: TDS certificate, income tax challan, Form 26AS.
• Business proof: ITR for the last two years.
• Financial records: Balance sheet, profit and loss account.

Interest rate for a 1 lakh personal loan offered by top banks in 2025

How to apply for a 1 lakh personal loan?

1. Give your details: Fill an application with your financial and personal information.
2. Submit documents: Do it in person or online.
3. Verification: The lender shall verify the information from your application in the course of approval process.
4. Loan processing: The amount is directly deposited to your account within a few working hours once approved.

Factors affecting personal loan interest rate

Factors the lending institution decides to use when determining interest rates include:

1. Credit score: Chances of attaining a reduced interest rate enhance with the availability of a good credit score.
2. Income stability: The stability of income enhances the chances of getting better deals for loans.
3. Employment type: A steady job in a known organization may also improve your loan opportunities.

In conclusion, it is very easy to obtain a personal loan of ₹1 lakh if you are able to get the right lender and if you qualify under their criteria. However, despite immediate financial assistance offered by personal loans, their interest rates are always higher compared to secured loans. So it becomes crucial that your credit score doesn't come down due to unavailability of sufficient money or payment at the wrong time.

(Note: Personal loan interest rates and other provisions keep changing with time. Readers are advised to check the relevant bank's official website for the latest updates.)