What are the types of loan in India?

Loans are helpful in times of financial distress. They can help us out in emergencies and fund essential things like marriage, education, etc. There are many kinds of loans that financial institutions provide these days. Loans are no different, which followed the same trend. The following are the different types of loans available in india.

House loan 

You can get a loan using your house or land. Banks estimate the cost of your property. Based on its value, they approve the loan amount you claim. Banks check your capability and whether you are ready to repay the loan taken. Once you get the loan, you can fulfill your dream of building a beautiful house of your imagination. 

Personal loan

This loan is given mainly for their daily needs. However, there are no limitations on how to use the loan amount. You can get instant personal loan for whatever purpose you like. After sanction, the loan borrower can utilize the loan amount to fulfill various requirements. 

For example, one can use it to purchase goods that they use in their day-to-day life or to go on a vacation. 

Study loan

Every student has a dream to become good at their career. With a study loan, students can get a loan to fund their education. They can use the loan for their future education. For instance, they can go to study in a reputed institution in any foreign country. Then, they can learn skills in prominent universities so that they can make their future bright. With a study loan, they can pay their fees and buy books and other study materials. 

Vehicle loan

Every individual has a dream of purchasing a vehicle for their convenience. Some people cannot afford it because of their poor financial condition. So they cannot buy a motorbike or a car. Banks will give ample opportunity by providing loans to bank account holders with little interest. Non-banking financial companies (NBFCs) are also providing two and four-wheeler loans now. Banks check eligibility and approve the loan. NBFCs have more accessible terms compared to banks.

Business loan

Some people want to do something other than work as an employee. They want to be something different, like becoming a financial adviser or starting a business of their own. Money is an essential need for every startup. With this money, one can create a small business. After that, they can expand their business and make it profitable. Any person who has an idea to invest money to start a business can apply for a business loan. Financial institutions check their bank statements and their source of income and then approve the loan amount they claim. After receiving a loan amount, a person can buy valuable assets or equipment to start their own business.

Gold loan

Nowadays, people have a lot of plans on how to carve out their lives. In today’s world, money is an essential need to fulfill this goal. A gold loan is a way a person can get money quickly from a bank or NBFC. After you pledge physical jewelry like gold coins to a lender, you can claim the amount you need. The bank checks the purity weight of the gold, and then they approve the loan. When the borrower repays the loan amount, they can free the gold from the bank.   

Loan through PPF

No one lives in the world without a dream. Now, your savings in public provident funds (PPF) can help you realize your goals. Lenders give loans over PPF accounts. People who have a PPF account can get a loan quickly. In the early days of a job, a sum of money is deducted from your savings account for the future. This is deposited in an arrangement known as a PPF account. Depending on how much money you have at a given time, you shall get a loan.

Instant loan from credit card

Getting a loan through a credit card is similar to a personal loan. In this type of loan. You can get a loan using your existing credit card. No need for much paperwork. After applying for a loan with your credit card, firms check your credit score, past transactions, etc. Then, they approve your loan. If your credit score is good, then you get the desired amount you need. 

Conclusion

There are a variety of loans available in our country. If you are looking to take one, then you have many options to consider. See which loan offer is able to meet your needs. Also, find the interest rates. Online lenders like Fibe provide loans at cheaper rates. The interest calculation is on a daily basis. It offers an excellent instant loan app, too. You can apply and get the loan conveniently on it.

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