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 Personal Loan 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, let us find out more about the different types of Personal Loans.

What are the different types of personal loans in India?

In India, personal loans are broadly categorised based on their purpose, such as wedding loans, travel loans, education loans, home renovation loans, and medical loans. These loans, offer quick access to funds without needing collateral.

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. You can apply for a Travel Loan.  This type of Personal Loan helps you cover travel expenses. The documentation process is quick and you can get up to INR 15 lakh. The loan repayment tenure can be 60 months which is great for the holiday goers to repay with ease.

Study 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. It is ideal for students or parents who need quick financial support without pledging a collateral. You can apply for instant personal loan online through DBS Bank and get quick access to funds with minimal paperwork.

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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. One can apply for a loan amount for up to INR 15 lakhs . You can repay the loan within the time period of up to 60 months.

Personal Loan for Home Renovation

A personal loan for home renovation helps finance upgrades like painting, repairs, plumbing, remodelling, or expanding a section of the house. It allows you to manage these costs without using your savings or offering any collateral.

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. 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

A consumer durable loan is a type of personal loan that helps you purchase household appliances. It enables you to own the products you need or want immediately, without waiting or paying the full amount upfront.

Features of Personal Loan

DBS Bank offers personal loans with quick disbursal, flexible terms, and a fully digital process to meet a range of financial needs. Here are some reasons for applying a personal loan with DBS Bank:

• Loan amounts from ₹25,000 to ₹15 lakh
• 100% digital and paperless application
• Fixed interest rates starting from 10.99%*a.
• Tenure options from 12 to 60 months
• Easy online application via digibank app or website

Also Read: How to Get Personal Loan Without CIBIL Score

Eligibility and Documentation Required for Personal Loan

To ensure that you get approved for personal loan without any obstacles, keep the following eligibility criteria and documentation requirements:

Eligibility Criteria

• Applicant must be a resident Indian aged between 22 and 60 years.
• Minimum income of INR 25,000 per month (for salaried) or INR 3 lakh annual profit (for self-employed).
• Stable employment or business continuity, with a good credit history.

Required Documents

Conclusion

The different types of Personal loans enable borrowers to get access to funds for variety of purposes. Be it renovating your home, funding a trip or covering your marriage expenses, by applying for a personal loan online with DBS Bank you can benefit from low interest rates and flexible EMI plans that puts ease on your personal finance.

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.