Different types of Loan in India | Kinds of Loans in India

Different Types of Loans given by the financial institution of India

Personal Loan: Everyone has certain dreams in their personal life. But achieving these dreams in the real life is not easy. Due to uncertainties present in our life, a gap has been created between our dreams and the reality. Personal loans help to fulfill this gap. Now every bank is ready to give affordable & flexible Personal loan. These institutions are also ready to give you easy repayment options. Some banks have also Special personal loan facilities for women employees.

Home Loan: People take home loan to build a new house, to purchase a flat, for the Home renovation etc. Home loan is loan taken from the bank to buy a house or a flat, renovation, extension and repairs to your existing house. Your bank  assesses your repayment capacity while deciding the home loan eligibility. Repayment capacity is based on your monthly disposable / surplus income, and other factors like spouse’s income, assets, liabilities, stability of income etc.

Car Loan: Today all most all banks are ready to give car loan to buy a car (Both for new and used cars) to salaried as well as self employed individuals. Banks are ready to finance your car which suits your need and matches your status & preference .For the customer’s benefits, all the banks also provide the loan repayment tenure of 7 years.

Education Loan : Education loan is the type of term loan which is granted to the students of  India to take higher education in India or abroad where admission has been secured.

Gold Loan: This loan is taken against Loan against Gold Ornaments. It is designed to provide liquidity against gold ornaments/coins which a customer pledges with the bank. Loan amount could be 60-80 percent of market value of gold depending upon terms and conditions of different financial institutions. The loan amount can be utilized for personal / business & any other non-speculative purposes.

Loan against Properties: Loan against Property is given by the banks by mortgaging your property with them. Banks could give you the loan from 50% – 70 % of the market value of your property according to their rules and regulation and property type (whether the property is residential, leased residential or commercial property).

Banks give the Loan against Property to expand the existing business, for the Home renovation, to purchase a new property, for child’s higher education, to fund your vacation etc.

Loan against securities (LAS Scheme): Loan against securities is the loan approval by the financial institution against shares, mutual funds, bonds and insurance. Loan against securities are also known as LAS Scheme. The amount of loan under this scheme depends on the present market value of the securities and customer’s past credit history. People choose LAS to take money to invest into any other asset type or to invest back money into the market or for their business expansion.