• Lakshmi Vilas Bank Personal Loan

    Lakshmi Vilas Bank Limited offers a personal loan scheme to meet one’s personal and domestic expenses, make fresh financial investments, make business investments, etc.

    • Loans low as Rs.10,000 can be availed
    • Repayment tenure up to 5 years
    • Low processing fee
    • Multi-purpose loan

    Features and Benefits

    • Loan quantum: The personal loan offered by Lakshmi Vilas Bank is highly flexible in terms of the loan amount one can avail. While the lower limit is Rs.10,000, there is no maximum limit on the amount that can be availed.
    • Utility: The loan amount sanctioned by the bank can be used by the borrower for any expenditure or investment.
    • Margin: The margin is decided based on the type of security pledged. In case of an LIC policy, the surrender value of the policy is considered the margin. In case of Kisan Vikas Patras (KVPs) and National Savings Certificate (NSCs), 10% of the accrued value will be regarded as the margin. The margins will remain the same for Secured Overdraft (SOD) and Demand Loans (DLs).
    • Attractive interest rate: The interest rate is conveniently low. This way, the borrower need not shell out too much while repaying the loan.
    • Repayment period: Two months prior to the maturity of the KVP/NSC/LIC policy, or 5 years, whichever is earlier, is the maximum time the individual has to repay the loan.

    Lakshmi Vilas Bank Personal Loan Overview

    Interest Rate 11.4% p.a.
    Loan Amount
    • Minimum: Rs.10,000
    • No maximum limit
    Processing Fee 0.25% of the loan amount
    • Minimum Rs.100 for Secured Overdraft
    • Minimum Rs.50 for demand loans

    Documents Required

    If you wish to get the Lakshmi Easy Loan, you will have to submit a list of documents that the bank requires. Given below are some of the documents that will be required:

    • Proof of identity
    • Proof of address
    • Proof of age
    • Bank statement
    • Salary slips and Form 16 for working men and women


    Anyone who holds National Savings Certificates (NSCs), Kisan Vikas Patras (KVPs) or Life Insurance Corporation (LIC) policies can apply for the loan. Groups of people who hold these documents can also apply.

    How the EMI calculation of Lakshmi Vilas Bank Personal Loan work?

    Lakshmi Vilas Bank asks loan applicants to pledge their NSC, KVP, or LIC policy in return for the requested loan amount. The amount can be returned on a monthly basis as per the EMI schedule provided. The EMI payable is calculated based on the interest rate, processing fee, and loan tenure. Take a look at the example given below to understand how personal loans work.

    Mr. Rao had plans to start a business but was short of Rs.3 lakh in funds. Hence, he approached Lakshmi Vilas Bank for a personal loan. As he had an LIC policy that he could pledge, the bank approved the application for Rs.3 lakh loan at 11.4% interest p.a. The processing fee charged for the loan is 0.25% and the loan tenure was decided to be 1 year.

    Given below are the details about the EMI payable for the next 12 months:

    Month (in Rs.) Principal Paid(A) (in Rs.) Interest Paid(B) (in Rs.) Total Payment (A+B) (in Rs.) Outstanding Loan Balance (in Rs.)
    1 23,721 2,850 26,571 2,76,279
    2 23,946 2,625 26,571 2,52,334
    3 24,173 2,397 26,570 2,28,160
    4 24,403 2,168 26,571 2,03,757
    5 24,635 1,936 26,571 1,79,123
    6 24,869 1,702 26,571 1,54,254
    7 25,105 1,465 26,570 1,29,149
    8 25,344 1,227 26,571 1,03,805
    9 25,584 986 26,570 78,221
    10 25,827 743 26,570 52,393
    11 26,073 498 26,571 26,320
    12 26,320 250 26,570 0

    To know the schedule for a different loan amount you wish to take, use our EMI calculator

    Compare Lakshmi Vilas Bank personal loan with loans from other lenders

    Parameters Lakshmi Easy Loan Corporation Bank Personal Loan Karnataka Bank Personal Loan Yes Bank Personal Loan
    Interest rate 11.4% p.a. 12.9% p.a. onwards 13.20% p.a. 10.75% onwards
    Processing fee 0.25% 1.5% of loan amount Nominal As per loan agreement
    Maximum loan quantum No limit Rs.3.5 lakh As mentioned in loan agreement Rs.40 lakh
    Maximum repayment tenure 5 years 60 months Rs.5 lakh 60 months


    How do I repay the loan?

    You can repay the loan through equated monthly instalments (EMIs) as per the schedule given. In the example given above, the EMI payable was around Rs.26,570. Make sure you don’t miss any of the payments.

    What reasons could lead to the rejection of the loan application?

    The bank may reject the application if the applicant’s credit score is low, the loan amount is too high for the tenure chosen, or the applicant does not have sufficient income.

    Can I avail the Lakshmi Easy Loan without pledging any security?

    Lakshmi Vilas Bank specifically needs loan applicants to pledge government securities to get a personal loan. So, you have to provide any of the mentioned government securities to get the loan amount.

    Can I get a Rs.5 lakh loan for a single government security?

    The bank will decide the loan amount that can be sanctioned based on the government security being pledged. If the value of the security you hold is estimated at Rs.5 lakh, the application can be approved.

    How is the interest rate determined?

    The personal loan interest rate is determined by the bank based on the Marginal Cost of fund-based Lending Rate (MCLR). The Lakshmi Easy Loan, for example, is 1.50% over the one-year MCLR fixed by the bank. The bank decides the MCLR based on the repo rate fixed by the RBI.


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    Lakshmi Vilas Bank Personal Loan Reviews

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