Types of Personal Loans in India
31 Oct 2022
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Loans fulfil quick cash requirements and are thus anyone’s best financial friend in times of need. With skyrocketing prices and limited income, it's hard to save from your earnings or make short-term financial investments. So, where do you find funds when you need them immediately? Several types of personal loans are first partner of choice for emergencies and money management mantras for smart spenders. Taking loans are not a bad habit if you can repay timely in disciplined manner.
Types of Personal Loans in India
Personal loan are the most convenient financial backups offering the confidence you need in emergencies filling the immediate cash crunch with the flexibility of returning at your convenience. Banks, non-banking financial organizations and private money lenders are ready to finance various types of personal loans when you want extra money for a better life. But just as James Grant, the American financial wise owl remarked, “If loans are expanding too quickly, the lending officers have probably been saying ‘yes’ too frequently,” so ensure that you choose a dependable source when taking loans. That way, your debts won’t exceed repayment capacity. This article encapsulates different personal loan types and what to expect from each.
Pre-approved Personal Loan
When you need immediate cash, choose a dependable lender that fosters accountable borrowers. Your pre-approved personal loan is disbursed in a day and is preferred over credit cards. You can loan a higher amount with a low-interest rate. Choose from personal loan types if you have a good CIBIL score. These types of personal loans allow the borrower to get an unconditional loan without mortgaging or pledging any asset, making them expensive. Entrepreneurs treat this as a stopgap for raising funds to meet urgent financial needs. Personal loans auto debit equated monthly instalments (EMI) from your bank account. These are short-span loans with subjective repayment terms.
Medical loan
Among personal loan types, is the medical loan, a financial backup for any medical emergency like hospitalization, medicine, surgery and other expensive medical treatment. This loan like other types of personal loans do not require collateral and thus has high-interest rates and repayment through EMIs linked to bank account. This loan is a lifesaver in your most trying times.
Personal Loan for Home Renovation
In Bank of Baroda, there is a dedicated product namely “ Baroda Home Improvement Loan ” which fulfils the requirement of existing Home Loan borrowers for repairing / renovation of their dwelling unit. However, Bank also provides Personal Loan for shorter period ranges from 12 months to 84 months for any purpose other than speculation.
Personal Loan for Travel /Vacation
Holidays break the monotony of mundane life, but at times, failing funds stop this indulgence. Why not choose a travel loan? Travel loans falls under types of personal loans that help you to cover your vacation expenses like tickets, hotel, food and other expenses and even sightseeing. This loan is available as any personal loan type for both domestic and international travel. With a high-interest rate be mindful of the finer details that this personal loan type includes. This is an instant approval loan scoring higher than credit cards.
Personal Loan for Marriage
Weddings can be extravagantly expensive. You want to gift your children or yourself a memorable occasion. To ensure that you can meet the expenses you might need a marriage loan. A marriage loan is among the ideal personal loan types for planning dream weddings. From jewellery to a lavish event, a marriage loan will take care of every spend. The personal loan for marriage follows the same criteria as any other types of personal loans in India. The minimum age for taking this loan is from 21 -23 years and the maximum from 58 -65 years. The loan amount is subject to minimum net income. Personal loan for wedding serves the purpose of wedding anniversaries too.
Personal Loan for Debt Consolidation
Personal Loan for Debt Consolidation is an easy way to pay off loans you may have missed. Medical, travel, house building, credit card debts or other unpaid loans are grouped, and a consolidated sum is fixed for repayment. This personal loan type prevents paying multiple EMIs, failing one of which will affect your CIBIL score. Debt consolidation personal loans are similar to other types of personal loans.
The Bottom Line
Personal loans have a tempting choice of options to spoil you. These attractive and easy personal loan types urge you to avail them. However, before you go ahead with a personal loan, ask yourself why you need one, can you handle the repayment amount timely and smoothly? Make sure you have all the documents required for personal loan. Check your credit score, weigh the pros and cons and above all choose a dependable source like The Bank of Baroda to ensure that your loan repayment is hassle-free and well managed. After all, how you manage your finances determines your lifestyle. So, get smart and manage your loans well.
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Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
Personal Loan Processing fee and Charges
Loans are backbones that offer a financial equilibrium. As India prepares to enter the festival season, it's time to amp your finances. Spendings are on an upward spiral from September to December for almost all families across the nation. Indian festivals are elaborate and expensive, but if you have your financial goals sorted, getting a loan should not be a problem. While saving for the festival every month is a great idea, it may not be sufficient. So some manage their festival season’s financial overheads with loans quite effectively. Learn more about the nuances of personal loan processing fees and personal loan process steps (PLPS). This complete insight will make loan procurement a more informed exercise.
When And How To Refinance A Personal Loan
Loan refinance is a great way to pay off existing debt at a lower and more favourable interest rate. Now, did you know that you can refinance a personal loan? When we think of refinancing, we often think of heavier debt, such as a home loan or an education loan. However, personal loans too can be refinanced if you are looking for better terms of repayment. Read on to understand a bit more about how to refinance a personal loan.
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