Different Types of Personal Loans in India

Loans have become the most sought after financial aid as they are easily available and offer the requisite funds in the need of the hour. Whether secured or unsecured, different types of loans are available in the lending sector at competitive interest rates. While car loans, home loans, education loans, the gold loan comes in the category of secured loans, personal loans and business loans are unsecured in nature and are often preferred because of their not so stringent requirements.

Personal loans are slowly getting popular among the borrowers who need the money to meet their personal needs. With minimal documentation requirements and easy eligibility criteria, personal loan in India is easily accessible. Lenders offer instant personal loan to the borrowers provided they meet the requisite eligibility criteria.

The best part about personal loans is the fact that these can be used for any purpose. The lender doesn’t hold any interest in knowing about how the loan amount will be used. Personal loans can be used in various scenarios and on account of these different types of personal loans are bifurcated. Here is a jot down of different types of personal loans available in India.

Wedding Loan:

Weddings in India are an expensive affair and thus one must have ample funds to meet the expenses of venue, pleasantries, shopping, and other modern requirements. A personal loan that is used to fund one’s wedding is called a wedding loan. One can repay back this loan in easy monthly installments.

Home renovation loan:

A home renovation loan is an unsecured personal loan unlike the home loan or loan against property wherein the property in question acts as the security against the loan. This loan is very useful for the maintenance of the home and to undertake home improvement projects.  

Medical Loan:

Medical insurances take care of only the medical bills and are limited in their application. A medical loan is a kind of personal loan which comes handy during the emergency hour when one needs extra funds to meet the expenses of treatment, pay for hospital bills, doctor’s fees, medicines, etc. One can avail of these loans to meet the post-treatment expenses as well.

Vacation loan:

This is bliss for those who wish to travel the world. Vacation loans are personal loans that come handy when you wish to take a holiday but doesn’t want to end up breaking all your savings. One can avail these loans by applying online and get instant approvals provided you meet the eligibility criteria.

Education loan:

Personal loans that are used to meet the expenses related to education are referred to as education loans. The usual education loan only takes care of the tuition fees while all other expenses viz. food, transportation, living expenses, books, stationary etc have to be borne by the borrower. One can avail of the education personal loan and take care of these expenses seamlessly.

Debt consolidation loan:

Personal loans come with lower interest rates than credit cards. Thus, they are a great way of consolidating ongoing debts. This is a great way of lowering the debt burden by consolidating loans with a higher rate of interest to a personal loan with a lower interest rate.

Small Personal loan

Small personal loans are handy loans which are great saviors for immediate funding needs. They are available for smaller loan amounts and loan tenure. Business owners can use these loans for taking care of the emergency fund’s needs.

LOANSJAGAT FOR AVAILING PERSONAL LOAN IN INDIA

Since personal loans do not require any asset to be kept as a security against the loan amount, these loans come with a higher rate of interest. However, based upon your credibility and relationship with the lender, you can negotiate for a better personal loan interest rate deal. Fintechs like LoansJagat offers an excellent platform wherein you can compare different lenders for their offerings in terms of rate of interest, processing fees, and charges, loan amount, loan tenure, etc and get access to the personal loan quickly. Their online portal ensures quick instant personal loan approvals and faster disbursal of loans. Personal loan in Gurgaon, Delhi and other metros can now be accessed from the comfort of one’s home without the hassle of running around the lender for procurement of the loan product.

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