There remains no doubt that more people are looking for personal loans than before. Irrespective of the reasons people have, there has been a rise in personal loan applications. Another reason personal loans are so popular is that they are very easy to execute and do not ask for any security because of their unsecured nature.
Coming to accessibility, one can avail personal loans from any banking institution or non-banking financial institution. The time span is also very low, and one can have the money between instantly to 48 hours maximum.
With so much accessibility, there are so many loan options available. Continue reading the post to explore different types of loan options available in India.
Unsecured Personal Loans
Unsecured personal loans are the most common type of personal loan in India. As the name suggests, these loans are not secured by any collateral. Hence, the lender assumes a higher risk, and the borrower’s creditworthiness is crucial in determining the loan’s approval and interest rate. Unsecured personal loans can be used for any purpose and are usually offered for a tenure of 12-60 months.
Secured Personal Loans
Secured personal loans are loans that are secured by collateral, such as property, gold, or other assets. Since the lender has collateral to fall back on in case of default, these loans are considered less risky, and hence, the interest rates are lower than unsecured loans. Secured personal loans are usually offered for a tenor of 3-15 years and can be used for any purpose.
Debt Consolidation Loans
Debt consolidation loans are a type of personal loan that can help you consolidate multiple high-interest debts into a single loan with a lower interest rate. With a debt consolidation loan, you can simplify your finances by combining all your debts into one monthly payment, which can help you save money on interest and fees. Debt consolidation loans are usually offered for a tenure of 12-60 months.
Wedding loans are a type of personal loan that can help you finance your wedding expenses. With the rising costs of weddings in India, many couples are turning to wedding loans to fund their special day. Wedding loans can be used to cover expenses such as venue rental, catering, decorations, and more. Wedding loans are usually offered for a tenor of 12-60 months.
Medical loans are a type of personal loan that can help you cover medical expenses such as surgeries, hospitalization, or diagnostic tests. With the increasing healthcare costs in India, many people are turning to medical loans to help them pay their medical bills. Medical loans are usually offered for a tenor of 12-60 months.
Education loans are a type of personal loan that can help you finance your education. With the rising costs of education in India, many students are turning to education loans to fund their studies. Education loans can be used to cover expenses such as tuition fees, books, accommodation, and more. Education loans are usually offered for a tenor of 3-15 years.
Home Renovation Loans
Home renovation loans are a type of personal loan that can help you fund your home renovation or repair projects. With the increasing costs of home repairs and renovations in India, many homeowners are turning to home renovation loans to help them finance their projects. Home renovation loans can cover expenses such as repairs, painting, flooring, and more. Home renovation loans are usually offered for a tenor of 12-60 months.
Personal loans are a versatile financial tool to help you finance your needs and aspirations. However, before you apply for a personal loan, it’s essential to understand the different types of personal loans available in India, their features, and their repayment tenor. I
If you are unsure about which type of personal loan is right for you, consider consulting a personal loan agent who can guide you through the application process and help you find the best loan for your needs.