Types of Personal Loans in India

Types of Personal Loans in India

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A Personal Loan can be categorised into several different Types. Read on to find out about the Different Types of Personal Loan in India.

Key Takeaways

  • A Personal Loan can be used for many different reasons
  • Indian banks offer personal loans to fund various planned and unplanned expenses
  • You can use a personal loan to fund your dream wedding, vacation, renovate your house or buy the latest gizmos
  • Banks typically do not ask you the purpose for taking out the loan
  • The loan amount is disbursed into your account almost instantly

Introduction

A is a facility that gives you access to funds in the shortest period of time. You can use the funds to fulfil your many life goals or pay for all sorts of financial emergencies. These days, you can apply for the loan online, and based on your eligibility criteria and income, the bank sanctions the loan amount. So, whether you are doctor looking to open your clinic, a lawyer looking to rent a chamber, or a teacher planning to open a training institute, you can do it all through a Personal Loan. Yes, a Personal Loan is all-encompassing. So, let us find out more about the different types of Personal Loans.

Various Types of Personal Loans that you can opt for

The following are the different types of Personal Loans (2) offered by banks

Travel Loans

Travelling to a different land can be a passion for some and a leisurely activity for others. Going for a holiday means bracing for expenses over and above your normal day-to-day budget. So, if you wish to tick mark that scenic destination on your bucket list, you can apply for a Travel Loan. A Travel Loan is one type of Personal Loan that helps you travel now and pay it off later. Moreover, you get travel insurance as an added benefit with most Travel Loans. The documentation process is quick and you can get up to INR 40 lakh. The loan repayment tenure can be 72 months which is great for the holiday goers to repay with ease.

Study Loans

The next on the list of different types of Personal Loans is a Study Loan. It is one of the most popular types of Personal Loans. Most students intending to pursue short term courses such as a certificate course, a year-long diploma, or a vocational course can opt for a study loan. If you've always wanted to attend that three-month certificate course on photography, learn coding at a computer institute, or go to a culinary school to study baking, you can consider applying for such a loan.

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Wedding Loan

The list of different types of Personal Loans also includes a wedding loan. Destination weddings and pre-wedding photo shoots are quite popular these days, and can cost quite a fortune. With a Wedding Loan, you can plan your dream wedding without worrying about the expenses. Wedding Loans cover all the expenses related to the ceremony. Parents of the bride and group, or the couple getting married, can apply for this loan. The loan amount varies from INR 1000 to INR 25 lakh. You can repay the loan within the time period of 3 years to up to 72 months.

Personal Loan for Home Renovation

Does your house need a makeover? Perhaps you want to paint the house, or fix the leaky ceilings? Do you need to renovate some section of your house, add a room or convert it into a different type? If yes, you can opt for a Personal Loan for home renovation. This is one of the most popular types of Personal Loan that can help you pay for the home remodeling costs, without you having to mortgage your house.

Medical Emergency Loan

Although you may have put away money in preparation for a medical emergency, there may be times when you could need extra funds. In such a situation, you can avail of a Personal Laon for medical emergencies. For instance, you may have medical insurance, but the hospital does not provide cashless facilities. In such a situation, you can take out a Personal Loan and repay the lender once the insurer reimburses you. The loan amount allows you to pay for your medical costs and you can continue getting the necessary treatment without any issues.

Consumer Durable Loan

Have you got your eye on that latest mobile phone or video game? Does your house need a new refrigerator or television? You no longer need to wait to get your hands on these things. You can buy them by utilising yet another type of Personal loan - a Consumer Durable Loan. With this loan, you do not have to postpone your dream and can buy the latest tech gizmo on your wishlist.

Pension Loan

If you are a retired senior citizen in need of cash, you can apply for a special type of Personal Loan known as the Pension Loans. You can avail of this loan to pay for the rising expenses in your gold age - be it paying for medical expenses, day-to-day expenses, and so on.

Conclusion

As is evident, a Personal Loan can be utilised fin several different circumstances. All these different types of Personal Loans can be really helpful in tricky situations. Typically, all Personal Loans come with a standard repayment tenure of 5-7 years, but the tenure may vary based on the loan amount. Every type of Personal Loan has different features and repayment tenure. So ensure you first understand which type of loan you should apply, and then opt for it.

Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page

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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.

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