Personal Loan Agreement Explained: Terms, Interest Rates, Eligibility & Repayment
Jan 28, 2026 | 4 mins read
A ₹ 5 Lakh Personal Loan is ideal for salaried professionals, self-employed individuals, or business owners. It's accessible without collateral and comes with versatile usage options. Whether consolidating debt or funding a wedding, this loan provides the flexibility you need with flexible repayment options, competitive interest rates and quick disbursement.
Choosing a ₹ 5 Lakh Personal Loan from L&T Finance offers comes with several benefits:
1. Immediate Financial Relief:
Quick approvals ensure you have access to funds when needed.
2. Flexible Repayment Options:
Choose tenure of up to 72 months according to your income and repayment capacity.
3. Versatile Usage:
Utilise the funds for personal or professional needs without restrictions.
4. No Collateral Required:
This loan is unsecured, removing the need to pledge assets.
5. Improved Financial Freedom:
Manage multiple expenses seamlessly with manageable EMIs.
Know the major benefits for ₹ 5 Lakh Personal Loan
1. Flexible Tenures:
Repayment term of up to 72 months.
2. Competitive Interest Rates:
Affordable rates make repayment easy on your pocket.
3. Quick Disbursement:
Funds are credited to your account quickly.
4. Minimal Documentation:
Hassle-free application with basic KYC and income proofs.
5. No Usage Restrictions:
Spend on anything from travel to education.
| Type | Criteria |
|---|---|
| Residency | Indian resident |
| Age requirement | 21 to 58 years |
| Profession | Salaried or self-employed individuals |
| Document Type | Required Document & Checks |
|---|---|
| Identity Proof | Passport | PAN Card | Driver License | Voter ID | Aadhaar Card |
| Address Proof | Utility bill of any service provider not more than 2 months old (Electricity, Telephone, Post-paid Mobile Phone, Piped Gas, Water Bill) | Passport | Voter ID Card | Driving License |
| Income Proof | Income proofs vary for different professionals across salaried and self employed. |
Please find the easy detailed list of required documents here
| Type | Document |
|---|---|
| Salaried | Last 3 month's salary slips / Form 16 / Last 3 month's bank statement reflecting salary credits / Salary Certificate |
| Self Employed | Latest Income Tax Return (ITR) |
| Bank Statement | Last 3 month's statement is mandatory |
| Residence Ownership Proof | Not mandatory |
| Type | Interest Rate and Charges |
|---|---|
| Loan Processing Fees (non-refundable): | Upto 4%* of Loan Amount + applicable taxes |
| EMI Dishonour/ Bounce Charges: | As shown in the table below |
| *A bounce charge is a charge for (i) dishonour of any repayment instrument; or (ii) non-payment of instalment(s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate | |
| Sanctioned Loan Amount | Charges |
| < ₹ 5 Lakh | ₹ 500 |
| ₹ 5 Lakh - ₹ 30 Lakh | ₹ 1000 |
| Late Payment Charges (LPC)/ Penal Charges: | 2% (p.m.) on EMI overdue + applicable taxes |
| *LPC revised from 3% to 2% per month on overdue EMI w.e.f. 4th Dec'23 | |
| *Taxes applicable on LPC w.e.f. 1st Apr'24 | |
| Part Payment Charges: | Up to 5% of pre-paid amount + applicable taxes |
| Foreclosure Charges: | 5% of POS (Principal Outstanding) + applicable taxes |
| Legal/ Recovery Charges: | As per actuals |
| Duplicate NOC Charges: | First 3 paper copies - free of cost |
| From 4th Paper copy - ₹250 + applicable taxes | |
| Repayment Swap charges (per swap): | ₹500 + applicable taxes (applicable only for branch walk-ins) |
| Loan Cancellation Charge: | Nil - for 3 days from date of disbursal |
| From 4th day - 5%+ applicable taxes (on the outstanding loan amount) | |
| Document Charges: | Nil for Statement of Account (SOA), Repayment Schedule, Foreclosure Letter, Welcome Kit |
| Annual Maintainance Charges (AMC): | Nil |
*Terms & Conditions Apply. All actual charges will be as per Key Fact Statement (KFS) shared by the company.
| Loan Amount (₹) | Interest Rate (%) | Tenure (Years) | EMI (₹) |
|---|---|---|---|
| 5,00,000 | 11 | 1 | 44,190.83 |
| 2 | 23,303.92 | ||
| 3 | 16,369.36 | ||
| 4 | 12,922.76 | ||
| 5 | 10,871.21 |
Using our EMI Calculator for ₹ 5 Lakh Personal Loan is simple:
1. Enter the loan amount (₹ 5 Lakh).
2. Input the interest rate.
3. Select the repayment tenure ranging up to 72 months.
4. View the monthly EMI, total repayment amount and interest payable.
5. Adjust the tenure to find a suitable EMI.
Apply for Personal Loan with these steps
1. Apply online in just few minutes
Select Personal Loan and click the 'Apply Now' button to start your seamless digital loan journey
2. Fill in your details
Enter your personal details, such as income details, current address, and more, to instantly check your personal loan eligibility
3. Get your customised offer
Explore personalised loan offers to match your needs. You may also get an options to enhance your offer
4. Set up E-mandate
Securely provide your bank details to easily register for an E-mandate, ensuring smooth loan repayments
5. Complete KYC
Verify your identity easily and securely with a quick KYC process from the comfort of your home
6. Get loan disbursement
Get your loan disbursement directly in your bank account, ensuring fast and seamless access to funds
Most lenders process applications within minutes, and funds may reach your account in a few hours for an instant personal loan upto 5 lakhs category.
Personal Loans at L&T Finance range between ₹ 50,000 to ₹ 30 Lakh. The loan amount depends on factors such as your monthly income, credit score and repayment capacity, which are determined by the lender's eligibility criteria.
The processing time for a ₹ 5 Lakh Personal Loan is quick after document verification and approval.
We require basic documentation, such as ID and income proof, to process Personal Loans.
Yes, Personal Loans are unsecured loans, meaning you don’t need to pledge collateral or security.
For a ₹ 5 Lakh loan at an interest rate of 11% and a tenure of 5 years, the approximate EMI would be ₹ 11,000. Adjusting the tenure or interest rate will impact this monthly instalment.
Having a good credit score is recommended to boost approval chances. It indicates good financial discipline, assuring lenders of timely repayments, which makes you a preferred borrower for instant Personal Loans.
The interest rate, loan tenure and loan amount influence the EMI. Lower interest rates and longer tenures reduce EMIs, while higher rates or shorter ones can increase monthly repayment.
Yes, Aadhaar and PAN cards are essential KYC documents and are sufficient for Personal Loans.
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Personal Loan
I have upskilled myself and look forward to starting my own venture soon. Smooth process, disbursement in 15 mins of process completion. Extremely satisfied with the assistance of the Call Center.
Jasbir Kaur
Punjab
Personal Loan
I was aware of L&T Finance Consumer Loans, as I have already benefited from their services in the past. They had even clarified my doubts about T&C and loan process by calling me up at my convenient time. Because of such good support, I decided to take loan again from L&T Finance Personal Loans.
Chirag Mehta
Ahmedabad, Gujrat
Personal Loan
I spotted an L&T Finance Consumer Loans ad and applied. After my verification call, my request for loan was approved and the loan amount was transferred in the following 24 hours. L&T Finance Personal Loans provided me timely, financial help.
Vinod Bidlan
Andheri, Mumbai
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