₹10 lakh personal loan 2025: Eligibility, documents, interest rates explained

Personal loans are a popular way of borrowing temporary funds to pay for unexpected expenses. These loans offer instant disbursement and do not require collateral. Thus, even if you do not have an asset, you can apply for a personal loan and fulfil your financial needs.

If you need ₹10 lakh and are thinking of borrowing a personal loan, you must know the documents and eligibility criteria so that you can explore different options and get the best deal.

Eligibility criteria for a ₹10 lakh personal loan

Note: The eligibility criteria may vary depending on your overall credit profile. For the latest updates, visit your desired bank’s website.

Nationality: You must be an Indian citizen.

Age requirement: Minimum 21 years at the time of application, maximum 67 years at loan maturity.

Income: Minimum monthly income of ₹15,000.

Employment: You are eligible for the loan if you are a salaried employee (private sector/public sector) or self-employed with at least 1 year of work experience.

Credit score: A credit score of 750 or above improves chances of approval at lower interest rates.

Documents required for a ₹10 lakh personal loan

Note: Banks may require additional documents based on your overall credit profile and the amount you require as a personal loan.

For salaried employees:

• PAN card
• ID proof (Aadhaar, Passport, Voter ID, etc.)
• Signature proof
• Address proof
• ITR/Form 16
• Bank statements (last 6 months)
• Salary slips (last 3 months)

For self-employed individuals:

• ITR for the last 2 years
• Profit & Loss statement, balance sheet, and income computation (last 2 years)
• Form 26AS, Income Tax Challan, or TDS certificate (Form 16A)
• Business proof (registration certificate, GST certificate, etc.)

Factors affecting your ₹10 lakh personal loan application

Credit score: A credit score of 750 or above increases the chances of approval and helps you get low interest rates. However, a lower score may result in rejection of your application.

Income: A steady income, along with ample disposable funds, reflects a strong credit profile.

Occupation: Lenders prefer applicants who work in reputed and stable organisations, as this proves career stability and regular income flow. Unstable employment can reduce your approval chances.

Debt-to-income ratio: This ratio helps lenders evaluate your financial condition. It is important not to exceed this ratio above 30%, as this will reduce your approval chances.

Personal loan interest rates 2025

(Rates as of 29 September 2025)

Note: The interest rates discussed above are illustrative. For the updated rates, applicable terms and conditions refer to the official website of the respective lending institution.

Now, before proceeding with any particular loan product, it is also essential for aspiring borrowers to understand the risks associated with personal loans.

Key risks to consider before taking a personal loan:

1. High interest rates: Personal loans generally carry higher interest rates in comparison with secured loans.
2. Debt trap risk: Borrowing without a proper repayment plan can result in financial complications and the possibility of debt traps later on.
3. Credit score impact: Missing personal loan EMIs, home loan EMIs, or credit card bill payment due dates can drastically reduce your credit score.
4. Prepayment charges: Closing out on a personal loan early can attract penalties or fines, as per the terms of your loan contract.
5. Fixed EMIs, strict repayment: Monthly instalments remain constant, which reduces flexibility in case of income fluctuations.

In conclusion, it becomes vital for borrowers to analyse and understand all the risks associated with personal loans before applying for any new loan product. Professional guidance from a certified financial advisor should also be sought to make things easier. This approach can avoid surprises and make borrowing a pleasant experience.

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