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Types of Personal Loans in India: Get to Know - Fullerton India

Personal loans are among the quickest loans that can be availed according to the convenience of the applicant. The reason for the high popularity of personal loans is fast approval, minimal documentation requirements, easy application, among other reasons. Moreover, you can apply for personal loans online.

Personal loans help in raising funds for a variety of personal reasons. There are various personal loan types available in india. It includes marriage loans, home renovation, medical emergency, repayment of debts, buying expensive items, and many other purposes. There are many types of personal loans offered by various banks, NBFCs and online lenders. Let us refer to this list of personal loans to get a better idea of each one of these.

 list of Different Types of Personal Loans Available:

1. Wedding Loan: This loan strives to assist families and couples in dealing with the burden of wedding finances. It can be utilized to finance major wedding expenses like accommodation for guests, venue, catering, jewellery, decoration, etc. The interest rates for these loans increases during the peak wedding season as compared to the off-season time.

2. Agricultural Loan: It is a personal loan that is offered to farmers. It helps them to pay for various equipment, raw materials and other tools associated with their farming activities. As the interest rate for this loan is low, it helps farmers to earn more by enhancing their productivity.

3. Overdraft Loan: In case of emergency, this loan ensures that you never run out of money and have an adequate amount in your account. The interest rate of this loan is higher, and you only pay interest on the money you utilize.

4. Medical Loan: If you don’t have sufficient funds to pay the medical bills in case of emergency, you can apply for a medical loan and get the financial help through which you can avail instant funds.

5. Pension Loan: This loan helps the pensioners to borrow 7 to 10 times of their pension as loans to handle any financial emergency. The pensioner can only avail this loan from the same bank from which he is drawing his pension.

6. Home Renovation Loan: The lifestyles of people are constantly changing. Everybody wants their home to look more beautiful. This loan can finance your home’s renovation and repair. If you had been planning to get wooden flooring done or remodel your kitchen, a personal loan for home improvement can assist you with all the expenses.

7. Festival Loan: This type of personal loan sometimes comes during the festivities. The borrowing point of this loan is low. The interest rate and the processing fee charged is very less. 

8. Higher Education Loan: This type of loan can cover all your expenses like books, college fee, tuition fee, accommodation, travel, etc. The students can apply this type of personal loan with a co-applicant. 

9. Top-up Loan: The lender from which you have already taken a personal loan can offer you this. It helps you to avail more funds on your existing plan. You can repay them with your current tenure. Only a lender you have been regular with your repayment can offer you this type of loan.

10. Short-Term Personal Loan (STPL): A lot of digital lenders offers STPL loan. It is a short term loan that starts with Rs 1,000. It can be paid back in a few months to the lender. 

11. Vacation Loan: Travelling will require you to spend the right amount of money. So, if you want to go on a vacation without losing all your savings, then this type of personal loan can help you do that without impacting your monthly budget.

12. Consumer Durable Loan: This type of loan can be used to buy any durable consumer product, including a refrigerator, phone, washing machine, furniture, microwave, etc. Banks also offer it at no cost EMI. It may or may not include a down-payment depending on the product. 

There is a large variety of options available for personal loans in India. Many lenders might not provide them under different categories and instead label them all under a single ‘personal loan’ category. You can compare different personal loans online according to your requirements through bank websites.

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