What is loan
Before applying for the loan you must know all the basics of a loan. In simple language, loan is the money given by the bank or a financial company to fulfil your financial needs. Bank charges a certain amount of interest rate which varies from one loan type to other. You have to repay the loan amount in the fixed time period specified by the bank at the time of sanctioning of loan amount. The main advantage of loan is that provide you the needed money at the time of requirement instantly.
Different types of loans
There are various types of loan present in the market. You can take anyone of them from them according to your requirement and will. Although basic eligibility for all the loans remain the same but they differ on interest rates and repayment options. Let's have a look on different types of loan present in the market.
Education loan information and eligibility
Education loan is the loan provided by the bank to cover all the expenses of study of needy students. In India, education loan is available for almost every certified course. It covers all your expenses of study including stationary expenses, hostel fees and other securities. Also, if you are planning to study abroad, then also you can take assistance from education loan facility.
The main benefit of education loan is that you have to pay the loan amount after completing your education.
Home loan information and types
To have your own home is the dream of every middle class man but the cost of real estate is touching the sky which hampering the dream of every individual. To fulfil this dream of home, banks offer different types of home loans.
1. Home purchase loan- This loan is provided for buying a new home. Bank provided financial assistance of up to 80% of the cost of new home.
2. Home improvement loan- This loan is provided to those people who wish to renovate their existing home.
3. Home construction loan- Home is constructed once in the life time so most of the people prefer to construct it instead of buying a new home. Home construction loan is given to such people who have a wish to construct the home instead of buying an already constructed house.
4. Home extension loan- This loan is given to those people who wish to extend their home further.
5. Home conversion loan- This loan is provided to those people who already taken a loan for their home and wish to take another house on loan. In this facility, your already taken loan amount is added to the new loan amount and EMIs are calculated thereafter.
6. Bridge loan- Bridge loan is for those who are planning to buy a new home but not getting the buyer of their existing house. The bridge loan facility provides you the assistance for buying the new home until you didn't get the customer of your existing home.
Gold loan information and benefits
Gold loan is one of the popular loans available in the market. There are many benefits of gold loan and the major advantage of gold loan is that it provides you the loan amount instantly without any much hindrance. You also don't have to give any security to the bank as your yellow element is the greatest security for the bank. Gold loan is now provided by most of the major banks of India. The only thing which is required for gold loan is that you must possess gold. The process of availing gold loan is as simple as calculating from 1 to 100 for a graduate.
Vehicle loans available in India
If you are planning to buy a car but your pocket doesn't allow you then you don't have to worry as you can go through the path of car loan to own your dream car. The repayment of the car loan can be done by easy instalments. Also, taking the car through car loan saves your tax.
People who run their business and wish to buy some commercial vehicles can also avail the facility of commercial vehicle loan.
Personal loan types and information
Personal loan is the only solution to have instant money from the bank. Personal loan can be taken for any purpose without telling the reason to the bank, for example if you are running short from money for the marriage for your daughter then you can apply for the marriage loan in bank.
Although, interest rate on personal loan is slightly higher than other loans but it offers you the facility of instant cash without any security. Only thing which is required by the bank is that you should have good credit record in the bank.
Business loan available in India
To run any business successfully it is must that you have strong financial hand. To make you financially strong to run your business strongly, bank offers different types of business loan. You can opt for any of them according to your need.
There are certain eligibility criteria which must be fulfilled before you apply for the business loan.