Types of Personal Loans in India – A Detailed Guide

Types of Personal Loans

Types of Personal Loans

A personal loan is a type of unsecured loan that is provided by banks, credit unions, and other local financial institutions. It can be used for any unspecified purpose by the borrower. There are various types of personal loans, such as wedding loan, house renovation loan, medical loan, debt consolidation loan, travel/vacation loan, festival loans and small loans.

All these types of personal loans allow the flexibility of use to borrowers. Whether a person is planning a destination wedding or has a medical emergency, there is a type of personal loan available for them. One may avail an instant personal loan without providing any collateral to the lender. Personal loans in India are easy to acquire and flexible to repay.

Personal loans in India can be acquired with ease if one holds the creditworthiness criteria required by banks. Banks, financial institutions and credit unions in India provide personal loans through a hassle-free procedure. Instant personal loan facilities are also available where some few banks sanction the loan within 1-2 days after the formalities are completed.

There are various types of personal loans that are available in India.

Wedding Loan

In India, weddings can be a very expensive affair. A big fat Indian wedding is on a lot of people’s bucket list but not everyone can afford the expenses. In this case, an instant personal loan can be acquired by a person to help him/her in financing the wedding expenses. Weddings are a one-time affair and a very important day of our lives so why should one compromise their wishes just because of some financial crisis? Wedding loans can be taken by individuals in this case to finance the unaffordable expenses.

House Renovation

Every person desires to give his/her house a dream look but not all of them are able to finance the expenses involved in a renovation. Banks provide instant personal loan as a home renovation loan where a person can utilize the money taken as loan for renovating his/her house. However, one must understand that there are home loans available in the money market at a lower interest rate than an instant personal loan. However, a home loan can only be used to buy a flat/apartment not for renovating your present existing house. Home renovation loans, unlike standard home loans, come under the category of personal loans where the loan amount can be used for furnishing and decorating one’s house.

Medical Loans

Medical emergencies can arise anytime. An instant personal loan can help one finance his/her medical expenses. Not all of us have enough savings for the time of emergencies like this one, and to aid that a medical loan can be taken, which will help to afford proper treatment. Although medical insurance is a facility for financing medical expenses, not everyone is an insurance holder and for them, an instant personal loan for medical purpose is the best option to go for.

Debt Consolidation

This is a very common type of personal loan. There are people in India who are under huge debts. Such people acquire loans from different lenders to fund some of their financial needs. A debt consolidation loan is taken in such cases, where a debtor can consolidate all his/her existing loans with one single loan. This helps the borrower to manage installment payments with ease. It is always convenient for a borrower to manage his debts by taking the help of taking a personal loan (debt consolidation loan).

Travel/Vacation Loan

Going on vacation simply implies extravagant expenses. It can affect the monthly budget of people who do not have enough savings to finance their travelling expenses. Travel loans as an instant personal loan can be taken in such cases to finance vacations without draining one’s savings. While a lot of people rely upon their credit cards during their vacation, a travel loan can be a more convenient option than that.

Festival Loan

Many commercial banks offer festival loans to consumers to finance added expenses during the festive season. These loans help one to make good arrangements to host the guests on such occasions. One can fulfill his/her wish of hosting the best Diwali or Eid party using a festival loan.

Small Loans

A small amount of money can be taken as an instant personal loan during the time of emergencies. We cannot foresee the future and a financial emergency can arise anytime. A small loan helps one to overcome such emergencies easily.

Bottom Line…

Personal loans are of various types and help an individual to finance various needs. A personal loan also offers the flexibility of use to the borrowers. The simple procedure of acquiring an instant personal loan helps them to have a hassle-free experience. A good credit score, a well-maintained repayment history and few basic documents can get you an instant personal loan. Although the interest rates of personal loans are a bit higher than the other loans, it is more convenient for borrowers who are looking for instant credit to finance some urgent needs.

About Sashi 131 Articles
Sashi Singh is content contributor and editor at IP. She has an amazing experience in content marketing from last many years. Read her contribution and leave comment.

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