Indian lending sector is beaming at the moment. From banks, NBFCs to financial institutions, there is no shortage of lenders for the ever-growing borrowers who are willing to avail varied loan products. Digitalisation, innovation and technology have resulted in bridging the gap between the lenders and the borrowers in the Indian lending market. With loans available at a click of button and the whole loan application process getting simpler, it is time to abreast self with the right knowledge of different loans which are available in the country.
Indian lending market boasts of both secured and unsecured loans. While secured loans come with a low rate of interest because of a collateral attachment, unsecured loans incur a higher rate of interest due to the lack of any collateral and risk involved for the lender. Before one plan to opt any loan, it is important to be thorough about all the offerings attached to them so that you can make a well-informed decision.
SECURED LOANS AVAILABLE IN INDIA
A home loan is a blessing for anyone who wishes to buy a home or a property. This loan is offered against the property which one intends to buy and comes with a low rate of interest. One can avail loan amount up to 90 per cent of the cost of the property. The loan tenure for a home loan is up to 30 years and thus one can pay back the loan amount in affordable EMIs. One must, however, meet the eligibility criteria and have all the documents in place to avail this loan.
A car loan is a secured loan which the borrower takes to buy a car. Herein the car is the collateral. This loan incurs a low rate of interest and the borrower can repay the loan in easy EMIs.
A secured business loan is the ultimate business loans when the loan amount required is very high. One can keep any property as an asset against the loan. The property remains in the name of the borrower only but the papers for the same will be kept with the lender. The lender evaluates the cost of the property and accordingly decides on the loan amount lower or equivalent to that.
Gold loan is a secured loan which is given when the borrower keeps gold as a security. The loan amount is dependent upon the evaluated cost of the gold.
UNSECURED LOANS AVAILABLE IN INDIA
This is the most sought after loan and comes with plenty of benefits attached. The borrower doesn’t need to secure the loan with collateral and the loan amount can be used as per the discretion of the applicant. Personal loans are available with many leading banks and NBFCs at a competitive rate of interest and loan tenure up to 5 years. This loan can be used to finance one’s vacation, home improvement projects, buying expensive gadget etc.
Education loan is a kind of personal loan which the borrower can use to meet the expenses of his education viz. tuition fees, accommodation, food, transportation, study material etc. It is better than the education loan which only pays for the tuition fees and all other expenses are needed to be borne by the borrower. It is a great way to lower the burden off education.
In India, marriage is a big affair. To cater to the people, marriage loan or wedding loan is most coveted. This loan provides the requisite funds which can be used as per the discretion of the borrower to meet the unending expenses of the wedding in the family. One can use the money to shop, arrange for venue, pleasantries etc.
Apart from being aware of different types of loans, it is very important from the borrower’s perspective to compare different lenders before zeroing on the one. LoansJagat offers an excellent platform for the borrowers wherein they can compare over 40 leading lenders for their offerings in terms of rate of interest, loan amount, processing fees and loan tenure. Their portal gives you an insight into what the different lenders have on offer and accordingly you can choose the lender matching your requirements.