What are the different types of Personal Loans available?

 

A personal loan is having its own market with its increasing popularity. Personal loans are getting so much attention because of the fact that these loans do not ask for collateral for even a lump-sum credit. Usually, the banks check for the borrower’s credit score, and based on that the loan amount and interest charged on it is addressed. Thus to maintain a good credit score is very important if you want your loan application to be approved.

Personal loans have a multipurpose facility, which means it can be used for various reasons. These reasons could be related to emergencies, health issues, funding for the development of business. Some of these types of personal loan are discussed down below:

• Wedding loan- Big fat Indian weddings take up a large amount of one’s savings. One can opt for a loan within the range of 25 lacs. The repayment method also has options, regarding whether a person wants to pay off the credit in a short term on the basis of EMI in a long term tenure. Thus to fund a wedding personal loans can be credited by banks and NBFCs.
• Home Renovation loan- Home renovations are essential as it provides a roof where a person can spend his/her time with their family. Once a while there might occur a need for a house renovation, not just to change the outlook of the house but also to repair damaged portions. In such cases, Bajaj Finance personal loan offer credit for the purpose of renovation.
• Travel Loan- Nowadays travel loan has become a thing which is mostly availed for tourism and vacations. It might not necessarily have to be a trip to Europe or Africa, but these loans can be availed for traveling around India as well.
• Medical Loan- Medical loans are credited in situations of a medical emergency. As we know medical emergencies can be very critical at times and might require a lot of funding which might not be possible for a middle-class man to pay. Thus during such scenarios, the personal loan interest rate can be less if availed from the bank where the individual is already holding an account.
• Debt consolation loan- One can avail of a personal loan in an amount of 25 lacs using which he/she can pay off their previous debts. This option is quite suitable as one does not have to pay interest on various debts and can just repay the loan on a monthly EMI basis. Although there are a lot of options for getting a personal loan, one should think twice before getting a loan as there will be an added burden of repaying it back with added interest.

Also read this: Personal loan benefits