Different Types of Personal Loans Offered In India 2022
Loans satisfy the desire for quick cash when the sources to earn are restricted. It often becomes difficult to save money from monthly salaries due to varied expenses. Prices are rising at an alarming rate. So, meeting short-term financial investments becomes difficult. But they are important as well. Now, where do you go for money when you need it immediately?
Several personal loan types come in various forms. Moreover, they are a good option for those who manage their finances and respond to unexpected financial needs. This will help you if you can return the loan on time and in a disciplined way. Taking out loans is not a terrible habit.
Loan Options Available to Individuals in India
Many personal loan types offer the most practical financial insurance. They help you in times of crisis. They reduce pressure on your immediate cash flow. Also, they give you the freedom to repay the loan when it is most convenient. You may desire more money for a better life. At that time, you can find several personal loan types available from financial institutions, including banks, non-banking financial organisations, and private money lenders.
But, if loans are increasing too rapidly, you should make sure that you select a reliable source. It will not compromise your ability to repay your obligations. This article summarises the many personal loan types and what to expect from them.
Personal Loan Types that Have Been Pre-approved
If you need cash quickly, find a reliable lender. They should encourage responsible borrowing on the part of their customers. It is best to go for any pre-approved personal loan type rather than credit cards. You can borrow a larger sum while paying a lower interest rate. Also, if your CIBIL score is high, you may qualify for various personal loan types. You also pay less in interest.
These types of personal loans allow the borrower to get a total loan without having to mortgage assets. Still, the cost of these loans may be relatively high. Many business owners consider this a temporary measure for generating capital. It helps them satisfy their immediate financial obligations. You need not visit your bank to repay the loans. The bank will deduct the EMI from your bank account every month until the loan’s maturity. These are short-term loans with different conditions for repayment.
Medical Loan
A medical loan is also a personal loan type. It is a financial safety net in any medical emergency. This includes hospitalisation, medication, surgery, or other expensive medical care. Like other personal loans, this loan does not need security. As a result, the interest rates are relatively high. One can ensure repayments by making extended monthly payments tied to the borrower’s bank account. This loan will be a saviour for you during great difficulty.
Travel loan
The holidays provide a welcome escape from the humdrum of everyday life. However, there are times when a lack of funds makes enjoyment impossible. Why not consider obtaining a loan for your trip? Travel loans are personal loan types that may assist you in paying vacation-related costs. These include transportation, lodging, meals, other incidentals, and activities like sightseeing.
The loan is then used for many purposes, like travelling, incurring the cost of renovation, and others. Because of the high interest rate, paying close attention to the specifics of this form of personal loan is essential. It is a loan with quick approval that has a better credit score than credit cards.
Wedding loan
The costs associated with weddings may quickly add up. You want to make a special moment for you or your children to remember forever. You may want financial assistance in the form of a marriage loan to cover all the expenses. Personal loans in the form of marriage loans are among the best kinds available for organising one’s perfect wedding. A wedding loan may cover any expense, from purchasing jewellery to organising an extravagant celebration.
In India, the conditions for obtaining a personal loan for marriage are the same as those for obtaining any other personal loan. When applying for this loan, the lowest age range is between 21 and 23. The maximum age range is between 58 and 65 years old. The loan amount is contingent on a required minimum quantity of net income. Taking out a personal loan to pay for a wedding might also be helpful for large weddings.
Debt consolidation loan
A debt consolidation personal loan type is a simple approach to paying off bills that you may have forgotten about. It gathers debts incurred through medical care, travel, the construction of homes, credit cards, and other types of outstanding loans together. A single, consolidated amount is determined to be repaid. This type of personal loan keeps you from having to pay a lot in EMIs. These include any of them that might hurt your CIBIL score.
Conclusion
Personal loans provide a beguiling variety of possibilities to choose from, which might delight you. You are strongly encouraged to apply for personal loans, as you can avail of them without any hassle. If you need money but don’t have anything of value to use as collateral, don’t worry; you can still qualify for one of these loans. Based on the varied usage of personal loans in India, you have a variety of types of personal loans. Piramal Finance is the way to go if you want an excellent personal loan-providing option.