Personal loans are typically the fastest and most convenient way to raise funds for medical emergencies, make an expensive purchase, get married, consolidate your debts, renovate your home, etc. Many factors make it a preferred loan option, including the easy application, quick approval, and minimum documentation.
Most Indians are unaware of “how to get personal loans” easily and how many types of personal loan are available. Banks lend personal loans to you based on your creditworthiness without requiring collateral. Nevertheless, personal loans have higher interest rates than other loans, such as home loans or education loans, due to the risk involved with lending the money.
Different types of personal loans in India
Personal loan for government employees
Personal loans for government employees are specifically designed to assist salaried government personnel in meeting their personal needs. Employees of public sector undertakings, such as state, and local governments, are eligible for these loans. It can be used for a medical emergency, a last-minute trip, a wedding venue reservation, or home renovations, among other things. This loan has a lower interest rate and a longer repayment period.
Personal loan for home renovations
You can apply for home renovation loans for people who want to renovate their old homes. Home improvement and repair expenses such as remodeling the kitchen, buying new furniture, redecorating your house, painting, changing the electrical wiring, and getting new fixtures and fittings can be covered with this loan.
Personal loan for medical emergencies
As its name suggests, an emergency medical loan can be used for paying off medical bills, undergoing urgent treatments, and so on. In cases when you do not have medical insurance or when the insurance limits do not cover your expenses, these loans come in handy.
Personal loan for students
Students can use a student loan for various educational purposes, including getting into the best colleges or taking a professional course to improve their skills. Unlike an education loan, which can only be used for educational expenses, a personal loan for students can be used for both educational and personal purposes. It can be used to pay for your own or a child’s or family member’s education. You don’t even have to put up any collateral to get this loan.
Personal loan for women
Many banks offer customized personal loans for women to help them achieve their financial needs. These loans can be used to pay for college, travel, a wedding, or other unexpected conditions. These personal loan rates are generally competitive, and some lenders may even provide a particular interest rate discount.
Personal loan for higher education
A borrower can obtain a higher education loan to pay for their own or a family member’s higher education. A student loan pays for expenses related to education, such as admission fees, tuition fees, books purchased, and other costs related to education.
Personal loan for pensioners
A pension loan is a personal loan for retired personnel. This loan scheme isn’t subject to normal eligibility requirements. Many banks offer pension loan applicants 7 to 10 times the amount they drew from their pension the month before applying for the loan. This type of small personal loan has a longer-term and lower loan amount.
Personal loan against credit cards
Cash advances can be obtained through your credit card, which is a short-term loan that you can borrow against your credit card balance. Credit card loans may not have the same interest rate as regular purchases, even if you use your credit card. Once you withdraw the money, interest may start accruing, and you will likely be charged a processing fee.
While many types of personal loan are available from many banks, some lenders may offer them all under a single category of ‘personal loan’. There are different types of personal loans available for individuals depending on their needs. Compare the various offers of personal loans offered by various banks and the interest rates and pick the most suitable one within minutes.
Personal loan for wedding
You can apply for a marriage loan or wedding loan if you have a wish-list for your wedding, such as a dream destination wedding, an alluring diamond ring, delicious cuisine, and designer wedding dresses. Getting a loan from this lender covers all of your wedding-related expenses, like a perfect wedding dress, a makeup artist, a venue booking, a photographer, as well as the cost of hiring a choreographer and event manager.
Personal loan for travel
Travel loans, or vacation loans, can help you satisfy your wanderlust. Travel expenses include flight tickets, hotel accommodation, local fares, travel insurance, visa fees, activities, meals, and the service of a tour guide. A holiday loan can help you go on a dream vacation with your family, friends, and loved ones without worrying about the cost.