Different types of loans in India

There are many online websites that provide pre-approved or pre-qualified personal loans through affiliate lenders with quick disbursement and end-to-end digital processes. Like Paisabazaar.com and Bankbazar.com enables you to evaluate the major characteristics of personal loans offered by leading lenders and select the best offer based on your credit profile.

Types of Loans
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  • Personal loan characteristics Collateral-free loan
  • Loan From 10,000 to 40 lakh rupees
  • Processing fees: Typically up to 3% of the loan amount approved.
  • Duration of Repayment: 1 to 5 years

Different Types of Loans

Types of Loans
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Wedding Loan: You are eligible to apply for this loan to pay for wedding-related expenses such as venue bookings, catering, hotel, shopping, etc.

Home renovation loans: If you want to replace the furnishings in your home or pay for maintenance, a loan for home renovations is your best option.

Medical Loan: This loan option helps you pay for costs related to addressing medical emergencies or procuring medical treatment.

Travel Loan: With this loan, you may pay for your travel-related expenses.

Debt consolidation loan, which is a particular kind of personal loan, you may pay off several smaller loans that you have taken out at higher interest rates and then pay back a single aggregated EMI with a new credit that you have taken out at a reduced interest rate or for a longer term.

Consumer durable loans– Mobile phones, televisions, washing machines, computers, and a wide range of other gadgets and household goods can all be purchased using consumer durable loans, sometimes known as shopping loans.

Pre-approved personal loans, also known as quick personal loans, are only offered to a select set of bank and NBFC customers with excellent credit histories.

Individual Loan Top-Up: This is the additional loan amount you have accessed on top of the outstanding loan balance on your current personal loan.

How to Pick the Best Personal Loan:

  • The important actions to follow before applying for a personal loan are listed below:
  • Compare and check the interest rates for personal loans being offered by various banks and NBFCs.
  • Before submitting a loan application, confirm your eligibility.
  • Ask the lender about fees and other unstated costs.
  • Verify and confirm that the loan application has all the necessary documentation.
  • Take into account the loan approval and disbursal period.
  • Make sure all the information shared with the lender is correct and authentic


Q. How does credit score affect personal loans?

Ans. Your credit score is a three-digit figure based on your credit history. If your credit score is 750 or higher, you have a better chance of being approved for a personal loan with lower interest rates.

Q. Why should I consider taking out a personal loan in foreclosure?

Ans. By foreclosing on your loan, you might be able to reduce the interest payments on it. However, consider any fees the lender imposes for early repayment or foreclosure. Prepayment or foreclosure should only be used if it significantly lowers interest expenses once prepayment or foreclosure fees are taken into account.

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