Types of Personal Loan Available in India

If you wish to put a tick on life’s bucket list, you need an ample amount of finances. In an era, where prices are soaring heights the very next day, every other significant activity cannot be solely funded from our own pockets. In the dearth of adequate capitals, a personal loan seems to be the best financial instrument to rescue us from the situation. In the absence of pledging an asset, this unsecured loan can be taken quite conveniently. Besides, there is no end purpose of using this loan; however, it can be customised according to the needs and preferences of the borrowers. 

The popular types of personal loans available in India: 

Wedding loan: Organising a wedding in India is really an expensive episode. Everyone wants their wedding saga to be memorable and goes to the extreme to add colors to their dream. Despite making all the savings over the years, some unforeseen expenses can hit you. To help the prospective duo, different banks and financial institutions offer wedding loans. It can be easily availed by the would-be groom, wife or any other family members with minimum documentation. The loan amount starts from INR 1,000- INR 25 lakhs and the tenure period is from 3 months to 72 months.

Home renovation loan: While a home loan can help you buy a new home or property, what about the old one? The crevices in the walls, leaky roofs and damaged floors do need repairs. The renovation cost can add to your budget. Therefore, getting a home renovation loan not only take care of the repairing cost but, also increases the valuation of the property. With a loan tenure up to 30 years, the interest rate at 9% and the loan amount ranging from INR 2lakh to INR 40lakh one can easily rehaul the look of his old house. 

Pension loan: If you are worried about the expenses to post 60 years of age, then opt for a pension loan specially designed for the retired personals. A pensioner can avail up to 7-10times of the pension figure drawn at the previous month before applying for the loan. There is a special discounted interest of 11.7 %, with a loan tenure of 60months. The loan amounts typically start from Rs.25,000 and go up to Rs.14 lakh. 

Travel loan: The travel bugs can backpack, and move in any corner of the world with a travel loan. By procuring a travel loan, you can enjoy your holiday destination and pay all the bills later. Besides, it also comes with a cover-up of travel insurance. It offers a flexible repayment period up to 72 months with a maximum loan amount of INR 40 lakhs.

Education loan: While there is a separate education loan available in the market, a borrower can conveniently get benefits from a personal loan by redesigning it for study purpose. Many lending institutions offer customised personal loans meant for educational needs. Apart from covering the tuition fees, it can be used for a student’s accommodation and fooding expenses incurred in the new place. This loan has an affordable interest rate of 9.5%, loan amount up to INR 20lakhs and loan repayment tenure of up to 15 years. 

These are some of the types of personal loans available in India, and one can avail these loans according to their needs. However, being a collateral-free loan, the credit scores play an essential role in loan sanctioning.

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Created on Dec 11th 2019 06:00. Viewed 479 times.

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