Interest rates vary across lenders based on creditworthiness, income, and repayment history. Below are the interest rate ranges for ₹20,000 loans from top financial institutions:
Lender
Annual Interest Rate
Lender
Annual Interest Rate
LTFS
12% to 25% p.a
PREFR
17% to 30% p.a
Aditya Birla
14% to 30% p.a
RING
23% to 33% p.a
FIBE
20% to 30% p.a
CASHE
14% to 30% p.a
NIRO
13% to 30% p.a
Bajaj Finserv
Starts at 10.5% p.a
InCred Finance
14% to 39%
Tenure and Loan Amount
The loan tenure for ₹20,000 personal loans ranges from 3 months to 60 months, depending on the lender.
Below is the complete information on lender-wise loan amounts, tenure and interest rates for personal loans offered by our lending partners
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Lender Name
Interest rates (Min-Max)
Tenure (Min -Max)
Amount (Min -Max)
LTFS
12% to 25% p.a
12 to 48 months
₹50,000 to 10 lakhs
Aditya Birla
14% to 30% p.a
18 to 36 months
₹50,000 to 5 lakhs
FIBE
20% to 30% p.a
3 to 36 months
₹8,000 to 5 lakhs
NIRO
13% to 30% p.a
6 to 60 months
₹20,000 to 5 lakhs
PREFR
17% to 30% p.a
12 to 36 months
₹50,000 to 3 lakhs
RING
23% to 33% p.a
9 to 24 months
₹30,000 to 1 lakh
CASHE
14% to 30% p.a
6 to 18 months
₹30,000 to 4 lakhs
Bajaj Finserv
Starts at 10.5% p.a
12 to 96 months
₹2,00,000 to 50 lakhs
InCred Finance
14% to 39% p.a
12 to 60 months
₹50,000 to 10 lakhs
Eligibility Criteria
To apply for a ₹20,000 personal loan, you must meet the following conditions:
age
Applicants should be between 21 and 60 years old.
Employment
Both salaried individuals and self-employed professionals are eligible.
Income
Applicants must meet the lender’s minimum income requirements.
Credit Score
A good credit score i.e. one above 750 increases the chances of loan approval.
For business loan, the business vintage should be a minimum 2 years and applicant must be between 23 -70 years of age.
Evaluate prepayment options to reduce interest burden.
FAQs
Can I get a ₹20,000 personal loan instantly?
Yes, some lenders offer instant loans with digital processing, subject to eligibility.
What is the minimum salary required for a ₹20,000 personal loan?
Most lenders require a minimum salary of ₹10,000 to ₹15,000 per month.
Can I prepay my ₹20,000 loan early?
Yes, but some lenders may charge a prepayment fee.
Will I miss out on anything if I close my loan early?
If you choose to prepay or foreclose your ₹20,000 loan early, you might miss out on the following:
Better credit score improvement – Longer repayment durations with timely EMIs help build a stronger credit history.
No prepayment benefit – Some lenders do not offer a reduction in interest for short-term loans even if you prepay early.
Prepayment charges – Some lenders impose a 1-5% foreclosure charge on the remaining loan amount, reducing the actual savings from early closure.
However, closing the loan early can help you save on interest costs and reduce overall debt burden. Always check your lender’s foreclosure policies before prepaying.
How can I check my loan eligibility?
Use an online eligibility calculator by entering your income, employment details, and credit score.
Can students apply for a ₹20,000 loan?
Students can apply with a co-applicant, such as a parent or guardian.
Can someone from outside India apply for a ₹20,000 personal loan?
No, most lenders offer personal loans only to Indian residents. However, some NBFCs and banks provide personal loans for NRIs under special categories, but they typically require:
A co-applicant or guarantor who is an Indian resident.
Submission of income proof from the foreign country.
Higher processing time and additional KYC verification.
NRIs looking for personal loans may need to apply through NRI-specific loan programs offered by certain Indian banks.
Can I get a ₹20,000 loan without a credit score?
Some lenders offer loans to individuals with no credit history, but interest rates may be higher.
Can I apply for a ₹20,000 loan with a low credit score?
Yes, but having a credit score below 650 may result in:
Higher interest rates.
Shorter loan tenure.
Requirement for additional documents or guarantors.
To improve approval chances, apply with a lender that offers loans to low-credit-score applicants or consider alternative income proof.
How long does it take to receive a ₹20,000 loan?
Most lenders disburse the loan within 24 to 48 hours after approval.
Can I get a ₹20,000 loan if I have an existing loan?
Yes, but lenders will evaluate your repayment capacity before approving another loan.
What happens if I miss an EMI payment?
Missing an EMI payment can result in:
Penalties.
Higher interest rates.
Negative impact on your credit score.
Can I get a ₹20,000 loan with a guarantor?
Some lenders may allow a guarantor for applicants with lower credit scores or unstable income.
Should I select the lowest EMI for my ₹20,000 loan?
Choosing the lowest EMI can be beneficial if you want to reduce monthly financial burden, but it also means:
Longer loan tenure, leading to higher overall interest costs.
Your total repayment amount will be more than opting for a shorter tenure with slightly higher EMIs.
If your income allows, choosing a higher EMI with a shorter tenure is often a better financial decision to save on interest. Apply today for a ₹20,000 personal loan and meet your financial needs with ease!
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I would like to thank Moneycontrol, few days back I met with an accident and I didn’t have much money to pay in one go. So, I took an instant cash advance from Moneycontrol. They helped me to clear all the medical bills in just 10 mins!
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The overall experience with Moneycontrol was really good. I applied for an online personal loan and the service was very quick. The entire process was fast and smooth, and the loan was sanctioned without any hassles.
Parineeta Mukherjee
I would like to thank Moneycontrol, few days back I met with an accident and I didn’t have much money to pay in one go. So, I took an instant cash advance from Moneycontrol. They helped me to clear all the medical bills in just 10 mins!
Suresh V Rangnathan
The overall experience with Moneycontrol was really good. I applied for an online personal loan and the service was very quick. The entire process was fast and smooth, and the loan was sanctioned without any hassles.
Parineeta Mukherjee
I would like to thank Moneycontrol, few days back I met with an accident and I didn’t have much money to pay in one go. So, I took an instant cash advance from Moneycontrol. They helped me to clear all the medical bills in just 10 mins!
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