Types of Personal Loan

Posted on

Personal Loan


Recently many people are availing themselves of Personal Loan to complete their expenses. The main reason for the rise in the increasing popularity of personal loans is that to be an unsecured loan, does not need any kind of collateral and the processing time for approval of the personal loan is quick. Anyone can easily apply for a personal loan from any bank or you can also avail yourself your loan from a non-banking financial company according to your choice. You can also use the online services for applying for personal loans through financial institutions or banks, you can get the money within 48 hours after applying.




A personal Loan is an unstable credit given by financial organizations dependent on standards like employee history, reimbursement limit, pay level, calling, and financial record. A Personal Loan, which is otherwise called a consumer loan is a multi-reason loan, which you can use to meet any of your immediate requirements.


Types of Personal Loan


Wedding Loan


Weddings are an important event in India. They accompany a considerable list of expenses. We all enjoyed the current day (for ourselves just as for our kids) to be entirely critical, and there isn’t anything we wouldn’t do to satisfy this fantasy. Accordingly, numerous banks have begun offering personal loans for weddings, which help us make our exceptional day paramount. Loans can be taken by the eventual ladies, grooms, or any of the relatives. In this kind of personal loan, the loan sum can be modified according to the person’s necessities.


Travel Loan


This is planned particularly for those who love holidaying. They are called travel, vacation, and holiday loans, wherein one can travel the world. Thus, take care of the bills later with holiday loans. In this kind of personal loan, there’s frequently an additional advantage of travel insurance, to give foolproof security.


Home Renovation Loan


Bringing home loans is extremely normal for purchasing real estate however we think about what happens when we need to renovate our homes. We either delay this because it is a costly exercise or wind up thinking twice about how to manage costs. Thus identifying this need, home improvement loans are offered, which help us deal with fixing costs, purchasing new material, worker’s charges, and so on. This kind of personal loan which assists us with redesigning our home gives the additional benefit of boosting the complete economic worth of the house in the real estate market.


Pension Loan


Pension loans are intended for retired people. Hence the customary qualification criteria don’t make a difference in this loan. Here certain banks provide a few times with the amount of pension the pensioner would have attracted the month past to present the loan application in this sort of a personal loan. According to the personal loan qualification calculator, pension proof should have been submitted. Pensioners are permitted to get any sort of costs like doctor’s visit expenses or everyday costs.


Education Loan


This is one of the most famous kinds of personal loans and has existed for quite a long time. Generally, the parents pursue education loans, and their children then, at that point take over and pay it up. Otherwise, it was called school fee subsidizing, one can likewise use such a loan for paying the educational expenses of one’s youngster, or a major academic requirement like travelling to another country.


Festival Loan 


Banks offer loans for celebrating festivals, which can help one in planning for the merriments and in facilitating gatherings. This is another new kind of personal loan.


Consumer Durable Loan 


Machines or Consumer Durable Loan is offered for buying white products. 


Computers and Mobile Phones Loan 


Banks offer computer loans just as mobile phone loans for selective products like computers, PCs, and mobile. A few banks offer insurance alongside the loan.


Benefits of availing of a Personal Loan?


In contrast to different kinds of loans like Home Loan or Gold Loan, where you should have to give several information, Personal Loans require the least information and the approval interaction is instant. 


With different financial Institutions which are offering Personal Loan online services, the loan sum is dispensed within a couple of hours gave the moneylender is persuaded of your repayment capacity.


Another huge feature of a Personal Loan is that the banks offer you the adaptability to pick your loan residency. Normally, a Personal Loan residency goes from one to five years. Along these lines, you can choose the loan term depending on your repayment limit. You ought to settle on a more limited loan, with the goal that you can save money on the interest instalment and repay the amount quicker.


How much amount you can borrow? 


The most extreme amount that you can profit from relies upon your income level, your profession, and the moneylender’s appraisal of your loan application. For the most part, the banks sanction the loan dependent on their calculation, with the goal that the EMI isn’t over 40% – 50% half of your monthly income. Likewise, the moneylenders consider on the off chance that you have any contribution while computing the loan amount.


If you are a business owner or self-employed, the lender will determine the loan amount based on the profits earned and recorded in the profit and loss statement. If you are a salaried professional, the lender will determine the amount based on your salary and other liabilities.


Is it possible to apply for a joint Personal Loan?


Yes, you can apply for a Personal Loan jointly with your spouse, or some other relatives like guardians or siblings. One of the benefits of applying for a Personal Loan with a co-borrower is that the banks will consider both the candidates’ income while deciding the loan amount. This implies that you can apply for a higher loan. However, you should realize that if the co-borrower has a helpless credit history, there is a risk that the bank may reject your loan application.


What are the documents required for a Personal Loan application?


Although the documentation fluctuates from one moneylender to another, some of the important documents you should give along with your application form include:


  • Proof of your income (salary slip, bank account statement)

  • Proof of your address and identity proof

  • Certified copy print of your school degrees and license.


Are there any foreclosure charges?


If you choose to prepay the loan before the finish of the actual term, the moneylender might collect penalty charges known as foreclosure fees. This penalty typically ranges from one to two per cent of the extraordinary amount.


Since you think about Personal Loans, you can analyze the loan offers from various moneylenders and apply for a Personal Loan online, and get the amount you need to meet your expenses.

Leave a Reply

Your email address will not be published.