How many types of personal loans can be offered by a bank?
Personal loans have become very popular amongst customers. There are a lot of options for personal loans that banks offer. Banks and other NBFCs offer different types of personal loans based on various needs. It is one of the easiest ways to raise urgent funds. These funds can be used for diverse needs like buying or renovating houses, medical needs, funds for marriage, etc. Personal loans are quick, easy, and available with minimum papers. Each of these aspects makes different types of personal loans preferable for customers. Read on to get a better idea of personal loans offered by banks.
Types of Personal Loans Offered by Banks
Home renovation loan
As the name suggests, the bank will offer personal loans for renovating houses. A home renovation loan will help finance repair, maintenance, and restoration. If someone plans to fix a leaky ceiling or fill up cracks in a wall, then a home renovation loan is the perfect personal loan.
Agricultural loan
An agricultural loan is one of the best personal loans provided to farmers. This kind of loan provides funds to the farmer at a very low-interest cost. It helps the farmers to buy farming equipment, tools, and raw material. It allows them to farm quickly and conveniently. Thereby, increasing their earnings and improving their overall output and productivity.
Wedding loan
A wedding loan is a type of personal loan offered by banks. This loan helps customers by raising funds for the couple or parents. These loans deal with giving financial support for the expenses of a wedding. Marriages in India are very expensive. Expenses for jewellery, management, food, etc., can be fulfilled by taking wedding loans. Thus, many lenders have started offering wedding loans which can help make the special day more memorable. Anyone can handle these types of personal loans. It can be the family of the bride, groom, or any other family member. You can take no fixed amount in this type of personal loan. The amount can be customized as per the needs of the individual.
Travel loan
This is one of the types of personal loans specially designed for holidays and travelling. These loans will help one raise funds for a vacation or a tour. With the help of travel loans, one can enjoy going around the world while paying for it later with a travel or holiday loan. Another advantage of a travel loan is that it comes with the added benefit of travel insurance. This will give foolproof protection throughout the tour.
Education loan
Education loan is one of the most popular types of personal loans offered by banks. Students use it to fulfil their academic requirements. These loans have existed for decades. Parents can sign up for these education loans, and as time goes by, kids can take over and pay it later. These loans are also known as school fee funding. These loans can be used to pay fees in school or tuition. In more significant cases, these education loans can be used in situations like if the child wants to study abroad.
Festival loans
Festival loans are a very different kind of loan. These loans are new in the market. Lenders are giving out this kind of festival loan for celebrating festivals. These types of personal loans can help one prepare for different festivities, host parties, etc. Festival loans are an excellent way to raise funds for festivals and parties.
Pension loans
Pension loans are loans that are meant for retired personnel. Only retired people are eligible for these personal loans. Hence the standard eligibility criteria don’t apply to the loans. In this type of loan, the bank offers a few times more of the amount of a regular pension that the pensioner will draw out at the end of the month. The main eligibility criteria for a pension loan is pension proof. It is a must to be able to apply for this type of loan as per the loan eligibility calculator. After submitting the loan application, the pensioner can take the loan for the next month. Pension loans help pensioners to borrow money for any expenses like medical bills or daily expenses. It has no boundaries.
Consumer durable loan
The consumer durable loan is a type of personal loan that will help one buy white goods. Various kinds of white goods can be purchased with the help of consumer durable loans. These types of loans are customer friendly and convenient to use. White interests include refrigerators, ac, microwaves, televisions, etc. So, if someone hopes to buy a fridge or an ac, they can apply for a consumer durable loan.
Medical emergency loan
A medical emergency loan is a crucial type of personal loan offered by a bank. Medical emergencies can happen to anyone at any time. A medical emergency loan will help raise funds for the crisis. Apply for a medical emergency loan to cover all medical expenses required during an emergency. These loans are a lifesaver. A medical emergency loan is quick, instant, and readily available with minimum documentation. The only eligibility criterion is a medical certificate as proof of credibility.
Top up loan
Top-up loans are different types of personal loans. Banks offer it to help with the payment of an existing loan. A top-up loan can only be taken from the bank where the initial loan was taken. One can take more funds from a top-up and repay the bank within the existing tenure. A top-up loan’s main eligibility criteria are for the customer to be regular with the payments.
Conclusion
There are different types of personal loans offered by banks. These are easy to avail, customer friendly, and available with minimum rules. Personal loans can also be customized as per the customer’s needs. If one needs help with personal loans, Piramal Finance is a good personal loan provider.