Types of Personal Loans in India Features Benefits & Eligibility

If you are in need of urgent funds for your emergency expenses, then taking an instant personal loan is one of the quickest and easiest ways to get extra funds. However, there are so many types of personal loans in India that makes sometimes be overwhelming to find the right one that matches your requirements and repayment capability.

Thus, to help you make an informed decision, this article will walk you through the major types of RBI-approved personal loans in India and their process.

Types of Personal Loans in India:

Personal loans are unsecured and collateral-free loans that can be used for almost any purpose. There are regular personal loans, and some are specialised personal loans for specific financing needs. Here are the most common types of personal loans available in India:

1. Home Renovation Loan:

If you need funds for major home repairs, renovations, or upgrades in your property, then you can go for this home renovation short-term loan. It gives you longer repayment tenures to keep the monthly dues affordable. You get flexibility in the loan amount to cover small enhancements or large-scale improvements.

2. Instant Personal Loans:

Do you need urgent access to funds within 24 hours to meet pressing financial needs? If yes, then you should go for quick approval, short-term instant personal loans. In these loans, the amount and tenure will be smaller so that the approval process and disbursal are quite fast. Salaried persons can avail themselves of an immediate loan by just having proof of income, whereas self-employed people might require business documents as well.

3. Wedding Loan:

This loan is tailor-made for helping the bride, groom, or even both of their families in arranging all the extravagant and costly arrangements that have to be made in a typical Indian marriage ceremony. This loan can cater to all expenses such as hiring the venue, food, decorations, clothes, gifting, arrangements for accommodation for the guests, etc.

4. Debt Consolidation Loan:

If you are having multiple ongoing loans like a credit card loan, car loan, etc., then you can consolidate them into a single loan through a debt consolidation loan. It offers the benefit of combining all your debts into one lower-rate loan to reduce the overall interest burden.

5. Medical Loan:

This loan is designed to help people meet their medical expenses, either planned expenses such as surgeries and treatment or any emergency. The loan repayment period and amount depend on the cost estimated by the hospital/clinics. The borrower is required to produce only minimum documentation, and the loan processing will be done swiftly.

6. Travel Loan:

With this loan, you can finance your travel plans and vacation both within and outside the country. It is possible to customise the amount of the loan, the term of the loan, and the payment plan based on the needs of the individual and the travel plan he/she is going to undertake. Most financial institutions even offer travel insurance for free along with the travel loan.

7. Personal Loan For Students:

If you need money to fund your higher education expenses like tuition fees, hostel accommodation, books, laptops, etc., then you can avail a personal loan specifically designed for students. The loan amount will cover the entire cost of study and living expenses.

8. Personal Loan For Salaried Professionals:

As the name indicates, this loan is designed for salaried professionals working in reputed private firms or public sector undertakings. The eligibility and amount will depend on multiple factors like income, employer profile, credit history, and others.

9. Personal Loan For Self-Employed Professionals:

Those who work in their own businesses, such as doctors, chartered accountants, and consultants, can apply for this kind of loan that does not require security and is meant for people earning money from their business.

How to apply for a Personal Loan?

You have to follow a simple process to apply for a personal loan:

1. Check eligibility using online calculators

2. Apply online on apps like Rupee112 by providing basic personal and financial information

3. Get in-principle approval

4. Provide documentation and verification in digital mode

5. Online Loan approval and disbursal of funds into your account

Key Takeaways:

In a nutshell, it is easy to apply for a personal loan as per your requirement. Personal loans offer high flexibility in tenure, amount, and repayment options. At Rupee112, we don’t just offer personal loans at competitive interest rates and flexible repayment options; we also give you the comfort of applying from your home on our app. You just need to digitally submit the documents and get your funds instantly in your account.