5 Personal loan types you should be well-acquainted with
Personal loans are essentially unsecured loans that don’t require you to submit any collateral to the lender. You are essentially granted the loan purely on the basis of your creditworthiness. The majority of the banks and NBFCs offer personal loans ranging from ₹ 50,000 to ₹ 40 lakh today.
As you don’t need to use personal loan funds for any specific purpose, this loan type has become extremely popular in the lending market. In fact, many lending establishments have created specific personal loan products to help people meet their unique immediate financial needs. Let’s go over some of these well-known personal loan types below:
Travel Loan
Travel normally requires only a couple of things – money and some of your personal time. As long as you can manage the time aspect of it, a travel loan can help you take care of the monetary needs. This loan is designed specifically to meet the unique needs of vacationers. Using this loan product you can easily travel around the world, without any worries, and pay your bills later. It comes with the additional advantage of travel insurance, hence, you get protection on all the fronts. Some of the key characteristics of a travel loan are:
- Loan amount going up to ₹ 40 lakh
- The quick and easy documentation process
- Flexible repayment tenure, usually extendable up to 72 months
Marriage Loan
Weddings have always been important and lavish affairs in India. It is normal for people to want their children’s or their own wedding to be memorable in every possible way. Hence, they don’t hold back when it comes to realizing that dream. There are many banks and NBFCs that offer marriage loans to help you make the most important day of your life even more memorable. This loan can be availed by the would-be groom, would-be bride, or any of their family members. Some key highlights of marriage loan are:
- Minimum documentation
- Loan amount ranging from a few thousand to ₹ 25 lakh
- Repayment tenure of 3 months to 72 months
Education Loan
All reputed lending establishments offer personal loans to aspiring students or their caretakers, to help them pursue a better education. Such education loans can be used for varied purposes including tuition fees, hostel fees, books, travel expenses, etc. Over the years, the idea of taking a loan to meet one’s education needs has started being perceived as an excellent investment in one’s future. Few of the key highlights of this loan type are:
- Low-interest rate starting at around 9.3% per annum
- Repayment tenure of up to 15 years
- Loan amount of up to ₹ 20 lakh
Medical Loan
Medical emergencies can prove to be very frightening, particularly if you are caught unprepared. Although a great multitude of people has started buying medical insurance today, there is still a large population out there that is uncovered, especially for such emergencies. And most of the time, the insurance policy doesn’t cover a certain types of medical expenses. It is for occasions like these that a medical loan can be of great help. The availed loan amount can be used for any immediate medical procedure. Some of the important characteristics of this loan type are:
- Loan amount of up to ₹ 25 lakh
- Minimum documentation and quick disbursal (often within 24 hours)
- Flexible tenure ranging from 24 months to 60 months
Car Loan
Many people who try buying their first vehicle are faced with budget constraints and/or cannot get a conventional car loan? In such a scenario, whether you wish to buy a used or a preowned car, a personal car loan can prove to be immensely helpful. Below are some of the main highlights of this loan type:
- Loan amount going up to ₹ 25 lakh
- Easy repayment tenure of up to 60 months
- Minimum documentation
No matter what kind of personal loan you need, you shouldn’t opt for it without comparing offers from different banks and NBFCs. GoSahi.com is the best platform to help you do that.
