7 Types of Personal Loans Offered in India 2022

Personal Loans

One cannot get by without money to buy food, shelter, and clothing. As soon as those needs are accomplished, it is in our very nature to seek out something more satisfying. Your salary, however, may not always be sufficient to satisfy your needs. Unforeseen circumstances are common in life. Perhaps you’re in a position where you need cash quickly. It might be anything from an unforeseen illness to a family gathering or even the destruction of your home in a natural disaster. Money problems always seem to crop up when you least expect them. You should try to get a personal loan. Moneylenders used to be the go-to for anyone needing quick access to cash in the earlier times. There used to be a huge divide between the rich and poor, but banks and other financial organizations have closed that gap. You can get by quite fine without the help of close relatives and buddies. The good news is that you can get a personal loan now.

What is a personal loan?

A personal loan can be obtained through a bank or other financial institution and is used to pay for personal needs such as retailing, traveling, making improvements to one’s home or automobile, etc. Personal loans are examples of unsecured borrowed funds because banks only provide money to borrowers after determining whether or not they are eligible for a loan and do not require collateral for the loans. Because of this, the interest rate that banks charge on instant personal loans can range anywhere from 12 to 24 percent every year.

Classification of Personal Loans:

There are a variety of causes for an unexpected shortage of cash. Therefore, if you ever find yourself in a financial bind, you can turn to several forms of personal loans for emergency funding. In India, the most common kinds of private loans are:

1) Wedding Loan:

Getting married is a major milestone. You need to think about everything possible to make it an unforgettable event for you and the people you care about. A wedding in your ideal location will create unforgettable memories, but it will also drain your bank account.

A wedding loan is an option if you need some extra money for the big day but don’t have a lot saved up. Get a personal loan and finally live the life you’ve always imagined for yourself.

2) Leisure Holiday Loan:

Who among us does not yearn for adventures in far-flung lands? After a tough week at the office, nothing beats a little vacation to help you unwind. However, the cost of a trip around the world might be substantial, and you shouldn’t have to worry about making ends meet. So, apply for an instant loan to avail yourself funds for a vacation so that you can enjoy yourself immediately and then pay off the loan in manageable monthly installments.

3) Education Loan:

In most cases, educational loans are guaranteed and secured against some type of security or another guarantee. Secured loans up to Rs.5 million are common. Secured student loans are available for both undergraduate and graduate study at accredited institutions. On the other hand, an unsecured education loan is a highly specialized type of personal loan in India that can be used to pay for things like tuition or the cost of living in a dorm.

4) Home Improvement Loan:

A home that has undergone renovation not only looks nicer but also has a higher worth on the real estate market. Existing users of a bank are eligible for a variety of special perks. A new home purchase can be financed through the use of a mortgage loan. However, you are eligible for the home remodeling loan if the structure of your current residence is in need of modernization or repair. You can brighten up the property by giving it a new layout, refinishing the walls, replacing the rooftop, or swapping out the flooring.

5) Consumer Durables Loan:

You will be able to purchase useful home appliances with the assistance of this loan, such as a television, refrigerator, air conditioner, washing machine, and so on. It is not difficult to qualify for loans of up to 5 million rupees. You can apply for an instant personal loan in order to purchase the newest electronic goods.

6) Pension Loan:

This loan is only available to senior citizens who are currently receiving regular pension payments. For senior individuals who are in desperate need of financial assistance, it is of great assistance. With a repayment term of up to 6 years and a loan amount that can be up to 8-10 times the most recent monthly pension payment, borrowers have a lot of leeways. The interest rates that are charged on pension loans are typically far lower than those that are charged on standard personal loans.

7) Medical Loan:

An unexpected medical crisis can be extremely upsetting for both the patient and the patient’s family. Not everyone has access to mediclaim, and even if they do, it is possible that the coverage is insufficient. The only option left is to take out a medical loan in order to pay for the costs of being hospitalized, having surgery, and purchasing medications. There are loans available up to Rs. 25 Lakh that can be repaid over a period of 3-6 years. Quick approval for the loan is granted with the bare minimum of paperwork. There are several lenders who also provide a versatile EMI plan.

Winding Up:

You have probably heard of personal loans in the past. It is important to understand that they can be an effective source of emergency funding for both individuals and businesses. The process of getting these loans is simple, quick, and affordable. You can get a loan from a bank or other financial institution as well as from a lender that specializes in personal loans. If you decide to get a personal loan for emergency purposes, make sure you understand all aspects associated with the loan before applying for it online. Personal loans are the best option if you are looking for an emergency loan to cover expenses.

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