Nowadays, personal loans in India are regarded as the most flexible financial tools. The fact that a personal loan is unsecured and the entire process is quite fast makes it a good option for emergencies, vacations, education, or debt relief. However, different personal loans exist. Selecting the proper personal loan could mean saving money, easier planning, and reduced stress. A variety of personal loans are available in India, tailored to individual needs.
Different types of personal loans are available in India; their uses and unique features are discussed below.
This is the most frequently taken personal loan. Medical emergencies do not wait, and these loans are specifically designed for rapid approval and rapid disbursal. They can pay hospital bills, surgeries, medications, and post-treatment care. The lenders are aware that these situations are urgent, so the interest rates are generally competitive.
Not everyone gets an education loan, particularly if the reason is not recognised or does not qualify for traditional formats. In such scenarios, many people turn to a personal loan for education. The sum can cover tuition fees, book costs, accommodation, airfare, or even skill-based courses.
Travel loans allow you to go on vacations without having to touch your savings. Whether it is a solo holiday, a family vacation, or a trip abroad, these loans will cover your flight, accommodation, tours, and even shopping. They are very popular among young professionals who want to have a flexible repayment option.
Now and then, residential buildings require maintenance or a make-up. The most preferred option is to opt for home renovation loans rather than waiting for the next season or withdrawing large sums from one's savings. Among other things, such loans cover painting, buying furniture, modular kitchens, plumbing, electrical work, décor upgrades, and more.
Indian weddings are lavish and, in most cases, they cost a lot. Unexpectedly or not, all over the world, wedding loans are granted for the same purpose: venue booking, catering, jewellery, outfits, photography, makeup, travel, and any other expenses, big or small. They are the helping hands that enable families to manage their spending without sacrificing their long-term savings.
When a person has multiple loans, such as credit card debt, EMIs, or small loans with high interest rates, debt consolidation loans convert them all into one easy-to-manage single EMI. This process typically results in a decreased financial pressure and enables one to normalise the repayment and easier tracking.
Are you considering buying a new phone, laptop, fridge, TV, or washing machine? Consumer durable loans cover all the household electronics and gadgets. Several lenders are offering no-cost EMIs, making large purchases easier on the budget.
The top-up loan is available to people who already possess an existing personal loan and require additional funds. A top-up loan replaces the existing one and requires zero documentation, as well as the same quick processing as quick loans. It’s a practical solution for those encountering urgent expenses.
A few banks are lending to retirees and offering loan options primarily targeted to pensioners. Such loans help retired individuals cover their medical expenses, home repairs, travel, or daily living costs. Typically, repayment conditions are easier because the pension is a constant income source.
Lending institutions offer festival loans during festivals like Diwali, Durga Puja, Eid, or Christmas to assist people in making purchases such as gifts, clothes, appliances, and decorations. Often, these loans are short-term and come with interest rates that are sometimes lower than those of traditional loans.
There are indeed business loans, but still, most of the self-employed borrow personal loans to cover their business activities, like buying equipment, paying salaries, or even getting into new markets. Processing is quicker for personal loans than business loans.
These loans are available for customers with excellent credit history. Approval is instant, the money is transferred quickly, and minimal documentation is involved. The bankers often send this offer to many salaried employees.
Though the objective of borrowing may differ, there are a few factors that ought to be considered:
Getting a grip on these small things can result in a substantial amount of money saved over time.
No one option is the best. It’s a matter of your goal. For wedding expenses, a wedding loan is a good choice. For paying off multiple debts, a consolidation loan is a good option. For an unplanned major expense, the medical personal loan will be your best bet.
Typically, lenders provide a sum that ranges from 5,000 to 10 lakh. It varies based on the borrower's income, as well as ability and credit score.
Personal loans are generally safe, provided they are taken from a regulated lender such as a bank, NBFC, or a legitimate fintech platform that can be trusted.
The majority of personal loans are multipurpose. You can use the funds for nearly anything the lender has not expressly prohibited.
It is a loan offered to clients with a remarkable credit history. Approval is immediate, and it needs very minimal documentation.
Medical, home renovation, and debt consolidation loans usually come with lower interest rates, but the amount of the rates depends on the lenders.
In India, understanding the various types of personal loans can help you choose the most suitable financial solution. Personal loans are available for a variety of purposes, such as managing unplanned expenses, planning major life events, or upgrading your home, and they offer the advantage of flexibility and convenience. Choose a reliable lender, compare the best rates, and select a loan that will not cause you financial trouble.
SOLOMON CAPITAL PRIVATE LIMITED is a Non Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI). RUPEE112 is the brand name under which the company conducts its lending operations and specialize in meeting customer's instant financial needs.
