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Different Types Of Personal Loans In India
In today’s financial landscape, a Personal Loan has gained immense prominence as a type of unsecured loan, enabling individuals to fulfil their financial needs. Further, to cater to the individualised needs of borrowers, financial institutions have introduced different types of Personal Loans. Read on to learn in detail about these variants of a Personal Loan.
There are different types of personal loans available in India - named slightly differently based on their end-use:
Weddings are expensive. To meet the total expenses without compromising on this big day, you can avail wedding loan to have your dream wedding. Lenders often offer special rates and repayment periods for wedding loans.
If you are planning to renovate your home but are worried about the expenses, personal loan for home renovation is the best option for you. Home renovation loan can be used for maintenance, repair, painting, etc.
Also Read: Maximizing Your Savings: Tax Benefits of Home Renovation Loans
Personal loan for education can be utilised by students pursuing higher education. Contrary to the secured education loans, these loans usually have low-interest rates and more extended repayment periods.
Planning a trip with friends/family and falling short on funds? Apply for personal travel loan and pay later. This loan can help you finance your travel expenses. Some lenders even offer travel insurance along with travel loans.
Also Read: How to Plan a Budget Friendly Family Vacation?
If you have multiple debts with different interest rates, you can consolidate them into one loan with a lower interest rate. This will make managing your debt easier and save money on interest payments.
Pensioners can apply for a Personal Loan against their pension. These loans typically have lower interest rates and more extended repayment periods.
You can use a Personal Loan to finance a car purchase. These loans mostly have higher interest rates than Auto Loans, but the repayment period is shorter. You can also consider a Pre-owned Car Loan from Poonawalla Fincorp if you decide to buy a used car.
Self-employed individuals can apply for a Personal Loan. These loans have higher interest rates than standard Personal Loans, but the repayment period is shorter.
You can use a Personal Loan to finance medical expenses. These loans typically have higher interest rates than standard Personal Loans, but the repayment period is shorter.
The process of applying for a Personal Loan is simple. You can apply online or visit your nearest financial institution.
You can consider following the steps below to apply for all types of Personal Loan in India:
Step 1: Click on ‘Apply Now’ in the Personal Loan Section to start your loan application process.
Step 2: Enter your details like PAN, date of birth, residential details and monthly income.
Step 3: Upload the necessary documents and click on ‘Submit’.
After verification and approval, you will receive the loan amount in your bank account.
The points below highlight the different features of a Personal Loan:
While applying for a Personal Loan, you just need to furnish certain basic papers to prove your eligibility. This makes the loan application process hassle-free and a good option for funding emergency financial needs.
After completing the verification process, lenders will instantly disburse the loan amount to your bank account. However, it is essential that you fulfil all the eligibility criteria and submit an error-free application form. Once you receive the loan amount, you can easily finance your monetary needs.
You can borrow a Personal Loan to fulfil any financial requirements. You can opt for this loan to finance major events like weddings, medical expenses, travel or consolidation of loan. Moreover, you do not need to worry about repayment as you can clear your debt conveniently as EMI throughout the loan tenure.
A Personal Loan also offers competitive interest rates starting at 9.99% p.a. Thus, it makes the loan affordable for every eligible individual. You can choose from floating or fixed interest rates as per your financial situation to ensure convenience while repaying your Personal Loan.
Most lenders today allow customers to apply for Personal Loan through their online website or app. Consequently, you no longer must visit banks and wait in long queues to apply for a Personal Loan. You can complete the application process easily from the comfort of your home with your mobile or laptop at any time of the day.
Very often a Personal Loan can help finance urgent needs of funds. To make itself accessible to everyone, lenders allow repayments through EMI. You can clear your outstanding amount as small parts throughout your repayment tenure. With this, you can manage your present finances and clear your debt simultaneously without hampering your savings in the long run.
The eligibility criteria for a Personal Loan vary from lender to lender, but there are some general guidelines that all lenders follow. Note that the eligibility criteria may differ depending on the types of Personal Loans in India.
The documents required for a Personal Loan varies from lender to lender, but there are some key documents that all lenders request:
The personal loan interest rate and additional charges for Poonawalla Fincorp are displayed in the table below.
|
Interest Rate |
Starting from 9.99% p.a. |
|
Pre-Payment Charges |
0% If paid from own sources & 4% If paid from other sources |
|
Late Payment Penalty |
3% penalty on overdue EMI amount |
|
Loan Processing Fees |
Between 0% to 2% |
|
Hidden Costs |
0 |
|
Cheque Bounce Charges |
Rs. 500 per bounce and taxes |
There are several benefits of a Personal Loan like:
There are some risks associated with a Personal Loan, including:
We hope you got a better understanding of the different types of personal loans. Based on your requirement you can choose a personal loan provided you meet the desired eligibility criteria. Explore various types of Personal Loans from Poonawalla Fincorp to meet your financial needs seamlessly and repay them in affordable EMIs.
There are different types of Personal Loans available in India which include wedding loans, travel loans, home renovation loans, pension loans, education loans, medical emergency loans, etc. Moreover, you can always choose other types of Personal Loans available in India.
As you must be already aware there are different kinds of Personal Loans with different Personal Loan interest types. As a borrower, you can obtain any Personal Loan easily. While you apply for Personal Loan, you must ensure that you fit into the eligibility criteria set by the lender. Also, before applying for a personal loan, consider calculating your EMI beforehand to know the right loan amount as per your finances.
Both weddings and a vacation can be expensive events, and at times there can be various unexpected and unwanted expenses that can impact your budget. Taking a low-interest Personal Loan in India will surely help you manage all your expenses during events like weddings and vacations. Also, you can always choose different Personal Loan categories to deal with similar events and occasions.
The amount you can borrow with a Personal Loan depends on your income and creditworthiness. Some trustworthy institutions like Poonawalla Fincorp provide ranging between from ?1 Lakh to ?30 Lakh.
The interest rate on the Personal Loans start from 9.99%. The exact interest rate will be based on your income, employment history, and credit score.
Several charges are associated with different types of Personal Loans, including processing fees, prepayment charges, and late payment charges. These charges can vary from one financial institution to another, so compare the fees before applying for a loan. These interest rates can also vary as per different Personal Loan types and your credit profile.
Personal Loans are usually repaid via fixed monthly instalments. The repayment period is from 12 to 60 months. You can make payments through post-dated cheques, ECS, or auto-debit from your account.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply
Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.
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