In this article, we are going to share information related to loans given by banks in India. There are about 10 to 12 types of loans in India that are offered by banks, but the process of all these loans may vary from bank to bank. The terms and conditions and the rate of interest may also vary on these loans according to the bank. Apart from banks in India, there are some finance companies that provides such type of loans. But the loan given by finance services and finance companies is much higher than the interest rate of the bank. Finance companies do not provide loans without capital and without securities. So, if you have to take a loan from finance companies, then you have to mortgage something as security like gold, property papers, etc.
Types of Loans in India
The first type of loan is Personal Loan. At some point in every person’s life, there may be a sudden need for money, in this situation you can take a personal loan. You can take Personal Loan for small needs or sudden expenses like for travelling, to meet wedding expenses, medical expenses, or to manage any other expenses of the house. But the rate of interest of the bank on personal loan is very high, so, you should take this loan only in an emergency.
2. Gold Loan
The second type of loan is Gold Loan. If needed, you can get loan by mortgaging you gold in bank. The rate on interest on gold loan is very low, but for that you have to mortgage your gold. If you want to take a loan at a lower interest rate, then you can take a gold loan. Apart from banks, finance companies also give loans on gold. For this you do not have to do any formalities, you only have to pledge your gold and your identity proof. After a short process your gold loan get sanctioned.
3. Property Loan
The next type of loan is Property Loan. Under this loan, you can get a loan by mortgaging your permanent property like house shop buildings. In this type of loan also, the rate of interest that is kept by the bank is kept low, because this is a secured loan, so, the risk of bank is less in this type of loan. And this type of loan can be availed by all categories of people who have property.
4. Home Loan
The next type of loan which is tvery much popular is Home Loan. When you think of building your own house, you need a loan at some particular place. So, if you have land, then you can get a home loan. because you can get it easily when you have land. So you can get this loan to build a house or even to buy a new house. But this loan is not easily available, for this you have to follow many terms and conditions of the bank. If you are in a job profession, then you get this loan easily. Especially in the case of a government job, you get this loan easily, otherwise you have to fill all the conditions. In this, you also have to submit your IT returns of the last 5 years. So if you have a good income and you regularly fill in your income tax returns, then you can take a home loan easily.
5. Education Loan
So, talking about the next type of loan, the next type of loan is an Education Loan. This loan is taken for studies. Whenever you feel that you need more money for higher education of your child, then you can take an education loan from the bank. Almost all types of banks offer this loan. If you are a student yourself, you need a guarantor to take this loan. This guarantor can be your father or any of your relatvies who has a fixed income and regularly fills income tax return.
6. Vehicle Loan
The next type of loan is Vehicle Loan, this is also one of the popular types of loans. Whenever you think of buying a new vehicle, you can take a vehicle loan. All the banks give this loan, and the finance companies which also give this loan very easily. If you have any capital, capital means like property, gold, FD, etc., then it becomes easy otherwise you should have strong IT returns to get this loan.
7. Corporate Loan
After this, next type of loan is Corporate Loan. If you have a big business, then you can take this type of loan. Big Businessmen take this type of loan like Vijay Mallya, Ambani, Birla, Tata etc. By looking at the company’s balance sheet and company’s turnover, the bank gives them a loan and makes a timely recoveryv of it also.
8. Share Loan
Just like the Corporate Loan, the next type of loan is Share Loan. Only certain types of banks give you loans to buy shares of certain companies. On which shares the bank will or will not lend you depends on the willingness of the bank. How much loan you will get depends on the share price and your ability to repay the loan. So you can also take a loan to buy shares.
9. Project Loan
Next type of loan is Project Loan. This loan is not easily available. Almost all banks in India provide this type of loan. But due to lack of knowledge about this type of loan in people, such type of loan is raised very less. This loan is given on the project you have created.
10. Business Loan
Talking about the next type of loan, a Business Loan is given for business, to move the business forward or to start a new business. It is also not easy to get this loan, for this you must have a property, have gold or you should have FDs. If you have all these things with you then you can take this loan easily.
11. Fixed Deposit Loan
Apart from this, if you have fixed deposits in the bank and you need money for a short time, then you can take a loan on your fixed deposits. These loans are used by a lot of people because the rate of interest on this loan is very low. If you have to take a loan in emergency, then there is no need to break your FD, you can take this loan on your FD.
So, these were some types of loans in India that are given by all banks in the country. Anyone can be required to take a bank loan. But, due to not knowing the rules of the banks or due to lack of the information about taking which type of loan, people take loans from moneylenders at expensive rates. If needed, from their friends, from their neighbours or from any finance company, which is very expensive for them. So, you can apply for this type of loan and can get loan from the banks. It depends on your eligibility but still you should try to take a loan from the bank instead of taking a loan from here and there.
If you have any other information regarding Types of Loans in India then do comment in the comment section.
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