Types of personal loans available in India
Personal loans in simple words are amongst the quickest and most convenient loans for raising funds for reasons such as medical emergencies, making expensive purchases, and getting married. An easy application process, minimum documentation such as an Aadhaar card for the loan, and quick approval are just some reasons why personal loans are preferred. However, personal loans are not a monolith. Here are some of the different types of personal loans available in India:
1. Short-term loans
Short-term loans are unsecured personal loans that you can quickly arrange with an instant loan application. These loans are known for being easily accessible and are also known for coming with easy repayment terms. First-time borrowers as well as salaried individuals can choose to apply for these loans to take care of small expenses.
2. Medical loans
It is common knowledge that medical treatments can be quite expensive. Now, when faced with a medical emergency, you may not have the time to arrange for the funds at such short notice. In such situations, you can always apply for a medical loan that can help in taking care of the immediate expenses at hand. These loans can take care of both your admittance charges and post-hospital bills.
3. Debt consolidation loans
Debt consolidation loans are known for being useful for paying off loans you are struggling with. With these personal loans, you can choose to pay off your other loans and instead pay off a single loan. Doing this will help simplify your finances since you have to focus on paying off one loan’s EMIs rather than tackle multiple loans at the same time.
4. Travel loans
Instead of having to postpone your vacation or settle for a destination with a cramped budget, you could opt to instantly apply for a personal loan. Lenders offer travel loans that can finance your dream holiday without you requiring you to stretch your savings or even redeem your investments. Affordable interest rates and convenient repayment tenures are some of the salient features of these loans.
5. Emergency personal loans
Life is unpredictable, and you never know when there might be an emergency where you need access to funds. In such cases, you can apply for an emergency personal loan. These loans do not require collateral and can be very useful for financial emergencies. You can get these loans at competitive interest rates, and most reputed lenders are known for disbursing such loans without any delay.
6. Marriage loans
A lot of people are unaware of the fact that one can get a marriage loan to fund all of their wedding expenses. Banks such as IDFC FIRST Bank offer marriage loan plans with affordable rates of interest and flexible tenures for the purpose of loan repayment. Moreover, with IDFC FIRST Bank’s marriage loan, you could even plan a destination wedding!
The loans mentioned above are some of the most prominent types of personal loans that are available across banks in India.
