One of the simplest and quickest ways to borrow money is through a personal loan, which may also be used for debt consolidation, home improvements, wedding expenses, significant purchases, and other purposes. It is a well-liked financing option due to a number of factors, including the straightforward application process, quick approval, and low documentation. Through an online personal loan application, you can get a quick personal loan without having to put up any security. However, a lot of us are unaware of the range of personal loans offered in India.
The personal loan market in India has expanded to include several customised variants. You may now rapidly get a personal loan using loan apps for a number of objectives.
Depending on the borrower’s needs, personal loans come in a variety of forms and follow different procedures. Most banks and financial organizations provide a range of personal loans to fulfill the demands of different individuals.
A personal loan can be classified into two categories based on the collateral requirements,
Unsecured loan: An unsecured loan is more difficult to get than a secured loan. Because the lending institution is taking on more risk, it typically also comes with a higher interest rate.
Personal secured loan with collateral: Because a secured loan is backed by collateral, the interest rate is lower.
According to your needs
There are many different types of specialised personal loans available because there are so many different purposes for personal loans.
There are many different types of specialised personal loans available on the market, including medical loans, shopping loans, travel loans, bike loans, auto loans, and loans for education. This is because personal loans have such a wide range of potential purposes. A list of a few loans in this category is provided below.
health loan
If you experience a medical emergency but lack the funds to pay for the related medical costs, you can apply for a medical loan to gain access to immediate cash. The healthcare system has reached its breaking point as a result of the COVID epidemic. Both the number of Covid patients and those with other illnesses has increased. An emergency medical loan might be helpful in certain situations.
Currently, personal loans for medical bills are the most common.
Vacation loan
If you’re planning a vacation and want to pay for your travel expenses without using up all of your money or disrupting your monthly budget plan, you should apply for this kind of loan. While credit cards may also be able to assist you, a travel loan can promptly and at a lower interest rate make the money available for your travel reservations.
Loan for home remodelling
It is common to obtain housing loans in order to buy land and build a house. Loans for home improvements can assist you in covering expenses such as labour, new material purchases, repairs, etc. You also gain the additional advantage of raising your home’s economic value on the market with this type of personal loan.
student loan
One of the most common categories of personal loans for a very long time has been education loans. Parents frequently take out student loans. After completing their further education and obtaining employment, their offspring take over and repay. Your whole expense of higher education, including tuition, books, lodging, travel, and college fees, can be covered by a personal loan.
bicycle loan
Loans are offered for the purchase of two-wheelers. The standard eligibility restrictions also apply to this loan. Getting a bike is simple with a bike loan. Additionally, certain companies may offer two-wheeler insurance.
Loan for consumer durables
On loans for consumer durables, banks also offer free EMIs. This type of loan can be used to buy any consumer durable product, such a phone, refrigerator, furniture, washing machine, microwave, etc. The purchase price is divided into EMIs that can be repaid over a period of time of your choosing. Some of the products, but not all of them, may demand a deposit or processing fee.
Conclusion
Personal loans are available in a wide variety of forms as a result. You may quickly identify a personal loan type that matches your requirements by taking into account factors like the loan’s purpose, the amount of collateral needed, etc. The interest rate and qualifying requirements vary according on your needs.
The market also offers a range of quick personal loans. You can also receive extra benefits and discounts when you take out rapid loans through internet platforms and online apps. You may easily apply for personal loans online without having to complete any additional paperwork.