Different Types of Bank Loans in India?
You can always put the loan you take to various uses. You can use it for funding a business venture, to buy an electronic appliance, or even purchase a house. Anyway, let get into the details of various types of loans available today in the market, and what differentiates them.
You can apply for a personal loan from both banks and other financial institutions that offer loans. And you can use a personal loan for various kinds of things, from the smallest factor-like paying your phone bill to make a purchase of a house or a car. Mostly, personal loans are unsecured loans, and doesn't require you to keep collateral as security. But a personal loan needs you to obviously submit documents of your possessions, income, address, etc. while you apply. And a personal loan is extremely flexible when it comes to repayment, you can either opt for a short-term personal loan, or a long-term personal loan. While the loan interest rates might differ from bank to bank and in between different financial institutions, it is certainly the easiest to get when you apply online with Sugmya Finance through Sufinn.com.
Credit card loan:
When you use a credit card, you do understand the term that you need to repay the amount the following month or in easy monthly instalments. It is something which is accepted all across the globe, and is one of the most convenient ways to purchase products, and pay for services when needed. Therefore it has become a really popular kind of loan. But if you fail to repay the amount on time, it shows really bad on your credit history report.
When you are going to purchase a house, you apply for a home loan, and it can certainly help you to a great extent. It will give you the financial stability that you will need to buy the house. And this kind of loan mostly comes with long terms of repayment, wherein you are given a duration of 20 to 30 years to repay the loan. According to this, bank loan interest is mostly kept at 8.3%.
Similar to home loans, you can apply for an auto loan when you want to purchase a car or a two-wheeler. It will then remain as an asset to you and it will then be considered as one of the biggest investment you make. It will bridge the gap between your wish to own a car and the reality of actually owning one. This loan is solely judged on the basis of your credit history and thereby your creditworthiness. So, you will need to keep a high credit score for this.
This is one of the most important loans people seek for. Be it for your own higher education abroad, or your children's higher education, a student or education loan always helps. It doesn't pile up a lot on you, since education is extremely costly, and you need to cover charges like tuition fees, library charges, travel cost, and even boarding charges if you/they stay away from home.
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ABOUT THE AUTHOR
I did complete my computer engineering degree in India from Govt College. And I am interested in computer works. Currently I am working as a freelancer with sufinn.com. This company offers number of loans like personal loan and other short term loan.