Money plays most important role in human lives and personal Loans are availed for meeting personal needs and they are different from business loans. If you are availing personal loan bank may or may not ask you to specify why you are borrowing money. In India, personal loans are very easy to get if you have place right documents.
5 Types of Personal Loans that can be avail in India
Most Loans are provided by banks but there are others forms lending service available as well. Personal loans are small loans and do not exceed 10-20 lakh rupees. And personal loans can be either unsecured or secured.
For secure loans you need to provide fixed guarantee details such as property. For unsecured loans, there is no security to provide by the borrower. Moreover unsecured loans have high-interest rates than secured loans due to the high risk incurred by lender.
In India there are common types of personal loans that you can avail. Here, we will discuss about these kinds of loans. Thus you can also check Top up Loan is better option for existing home loans
This kind of personal loan is provided to help people to fulfill their personal and family’s desire during festival time. Usually, banks of India provide this loan on festive season at cheaper or discounted rate. This is best types of loan for those people who want to avail small amount of loan. But festival loan is restricted up to 12 months only and repayment is to be done by monthly installments (EMI).
Thus rate of interest on this loan varies from bank to bank. These loans are small and they can be as low as Rs. 5000. It is short-term loan and it is best type of loan for individuals who need to borrow small amount of money.
Consumer Durable Loans
This type of loan involves not more than lakhs to purchase durable consumer products. Such as televisions, air conditioners, washing machines and other products that cost of lakhs. But this loan may be either secured or unsecured. It may be secure or unsecured based on which bank you are borrowing from and it depend on type of electronic being purchased.
These are unique kind of loans that are provided by Indian banks to attract more and more people towards them. Under this category of personal loan you will get an amount from 10,000 to 1, 00,000. But there are many banks which gives you minimum amount of Rs 5,000 to Rs.2, 00,000 under this loan. Thus banks provide this loan for maximum of 5 years time period. . For more information see five things to do for festive season
Indians are famous for their love of gold and it is one of easiest forms of loans that you can get. However, nowadays gold loan companies have been huge profit due to rise in gold prices. Hence, gold loans are not very popular at this moment. Whenever gold rates are high there are types of loans available in market.
This is type of personal loan that has popularity in recent years. And amount borrowed for marriage loan depend on person financial background, age, value. Thus interest rates for these loans are high during peak wedding season as compared to off season.
Nowadays, this type of personal loan is getting popular in urban and rural sectors. Under this loan rate of interest is governed by market rate at the time when loan is pay out. This loan help couples and families deal with the pressure of wedding finances. It can be used to fund such main expenses as hotel bookings, jewellery shopping, catering and decoration among others.
Across the country many people take loans for vacation inside or outside the country. And loan amount is depending on financial of an individual and in some cases it depends on travel purpose. You can borrow personal loan on salary basis which you draw or income you have accrued. Personal Loans will have high interest rates than business and home loans as they are short-term loans and also risk is involved to lender.
So, from above information it is quite clear that whenever you need to meet your financial expenses Indian banks are always ready to spread their helping hands to you. For more information see personal loan and loan comparison. Now you know different types of personal loans and plan carefully before applying.