Are you aware about the different types of personal Loan you can avail? If not, then you must scroll down to read about them. There are different types of personal loan. We may categories them by nature, by category, by purpose and uses. Our Loan Experts have gathered the detail about them for your ready reference in this post. We are sure that you will take advantage of them as per your suitability.
Different Types of Personal Loans
Loan Industry has specified personal loan terms as per their nature, category and uses. These are commonly known and categorized as below:
- Secured Loan-These loans are secured against some property or asset or any collateral. Loan Against Property, Gold Loan, Car Loan, Auto Loan, Loan against Fixed Deposit, Loan Against PPF etc are some example of secured loan.
- Unsecured Loan-These loans are not secured against any property, asset or collateral. If you default this loan then lender can not take your property immediate. Some of the examples of unsecured loan are personal loan (General) Credit Card Loan, Student Loan or Education Loan.
- Fixed interest rate Loan-In this loan the rate of interest is fixed for the entire loan period. The EMI amount is constant in it. Hence, it becomes easy to predict and calculate your schedule and future repayments.
- Variable Interest Loan-In this loan the rate of interest varies during the period of loan. The EMI also increases or decreases as per the rate of interest defined for any quarter or financial year.
By Purpose and Uses
- Installment Loans-It is a loan which is repaid over a period of fixed time with a fixed set of payments. For e.g. If you buy an Air Conditioner of Rs. 40,000/-on easy installment and you pay Rs. 10,000/- as down payment and remaining amount in monthly installment of Rs. 5000/- for 6 months then it will come under installment loan category.
- Short Term Loans-These loans are availed for short duration, let’s say 3 months or 6 months. In normal personal loan the minimum period is 1 year. But if you need Rs. 50,000/- loan and want to repay it in 5 months then Short Term Loan is best option for you. In the fast growing digital world, short term is gaining popularity over other personal loans.
- Cash Cards for Loan-There are many bank and private lenders who offer cash card or instant loan. It totally depends upon your eligibility conditions that you will get this loan. However in urgent or emergency conditions, it may be very useful.
- Credit Card Loan-Do you know that you can take loan on your credit card also. Here in this loan you do not need to provide any KYC or Documents as in the case of personal loan. Your Credit Card will be swiped and you get loan credited in your saving bank accounts directly. There is no unnecessary delays in this process.
- Over Draft Loan-You can withdraw funds even when you have no money in your account. This is possible through Over Draft Loan or OD Loan. In this loan, bank or lender extends the facility of loan upto certain limit (some banks gives upto 25 lakhs) linked with your saving account. You pay the interest only on amount taken from OD Loan account. When you have surplus money, you may repay it also.
Now, You have better idea of all types of personal loan you may avail. Taking a wise decision, you may ask your bank representative about specific type of personal loan and enjoy their features with multiple benefits. For More details on personal loan please Click Here