Types of Personal Loan in India

Personal loan is taken and given for personal works. There are many personal reasons for which people need money and for that they take personal loans. It could be taken for paying for home improvement projects or medical bills to buying an engagement ring or consolidating high-interest debt, etc.

TYPES OF PERSONAL LOAN

Personal loan is of various types. We have listed all those types for you.

UNSECURED PERSONAL LOAN:

The rate and approval of the unsecured personal loan is based on the credit score of the borrower. The repayment tenure of the unsecured loans is one to seven years. If you have poor credit, you’ll likely have a tougher time getting an unsecured loan with a reasonable interest rate, if you qualify at all.

SECURED RATE PERSONAL LOAN:

Secured personal loans are easy to get. If you’re not able to pay the funds back, you risk losing the personal property you put up as collateral. It can be obtained even if you have a poor credit condition. If you will not pay the loan back then any of your personal property is at risk.

FIXED-RATE LOAN:

Fixed rate personal loans have a fixed rate of your every month installment for the rest of the tenure of that loan. In fixed rate loans payments won’t increase if interest rates increase. If the interest rate decreases then no savings are left.

VARIABLE-RATE LOAN:

In this type of loan the rate is fixed by the bank. The monthly payments and total interest costs can rise or fall with these loans. If the interest rate decreases then the payment also decreases. If the interest rates increase then the payment will also increase.

CO-SIGN LOAN:

In a co-sign loan there is a co-signer with the borrower. The co-signer is like a guarantor. If the borrower does not repay the loan amount then the co-signer will have to repay the loan amount. For getting this type of personal loan the co-signer should have a strong credit score.

PERSONAL LINE OF CREDIT:

In the personal line of credit the credit card is used. In this type of personal loan you will not get cash to you, instead of it you will get the loan in your credit score. You only have to pay the interest for what you got. 

HOLIDAY LOAN:

Holiday is a great experience and we wish to go on vacation trips with family and friends,but stop because of the money. If you want to go on a vacation then you need to have enough money for that. You can get a holiday loan by which you can buy tickets, book hotels, buy gifts, etc. 

MEDICAL LOAN:

Sometimes some medical situations occurs when you do not expect them and you want money to handle the medical expenses such as medicines,operation,etc. The medical loan will help you when you come in a very serious medical condition and you need financial help. It includes the medical treatment, medicines, operation, etc. It has a low personal loan interest rate.

WEDDING LOAN:

The wedding functions are very important for everyone. but the expenses are too much and they need financial help. This type of personal loan helps you to find all your wedding related expenses with ease. The wedding loan helps in handling all the expenses of the wedding whether it is clothing,jewelry,dowry,etc.

APPLY FOR PERSONAL LOAN

Taking personal loan for your personal or family work is a good step. but there arises a problem that how to apply for a personal loan. Here we have mentioned some steps by which you can apply for the personal loan.

Applying for a personal loan is done in two ways online or offline. Here we are telling you the steps of applying for a personal loan in both ways online and offline.

OFFLINE PERSONAL LOAN:

  • First you have to choose a bank from where you want to have the personal loan.
  • There are many banks in the market who have good schemes and many good options for you. , so you have to choose wisely and went to that bank’s branch near your house.
  • After selecting the bank and going to the branch of the bank, you have to go to the reception and get an application form and fill all the details and attach the documents required for the personal loan.
  • Submit all the documents that are required and all should be original and correct.
  • The bank or the lender will verify the form and the documents and after verifying they will decide to approve the loan.
  • You have to wait for the approval of the loan.
  • After approval of the loan the amount will be transferred to your account and you can use the loan amount for your need.

ONLINE PERSONAL LOAN:

Today everything is going online whether it is studies or other business works. Apply for loan can also be done online. Here are some easy steps by which you can apply for the personal loan from your home without going anywhere.

  • First you have to decide the bank or the lender from which you have to get the loan.
  • So the next step is going on the website of the bank.
  • Now select the option of personal loan and go into the application form.
  • Fill the application form and complete all the formalities asked by you.
  • Do not miss any section and fill all the information.
  • After filling the form you should go to the option of apply now.
  • After applying for the personal loan you should wait for sometime till the bank approves your loan.
  • the bank will take a look at your form and verify your documentations and then decide to approve the loan.
  • Here you have done your personal loan application and you will be contacted by the bank after approval of the loan.

ELIGIBILITY FOR TAKING PERSONAL LOAN

  • The personal loan are given to the salaried employees who work any company in a private or public sector.
  • The age criteria is 23 years to 58 years.
  • The nationality of the borrower should be an Indian.

DOCUMENTS REQUIRED FOR PERSONAL LOAN

  • Identity proof such as Passport or Driving License  or Voters ID or PAN Card.
  • Residential address.
  • Bank statement of last three months.
  • Passport size photo at least two.

BANKS GIVING PERSONAL LOAN AFTER LOCK DOWN

HDFC BankStandard Chartered Bank
Bajaj FinservFullerton India Bank
Kotak Mahindra BankIndusInd Bank
ICICI BankPNB Bank
SBIAxis Bank
TATA CapitalReliance Consumer Finance
Deutsche BankHDB Financial Service

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