A loan is when you receive money from a friend, bank or financial institution in exchange for future repayment of the principal and interest. They can be unsecured, like a personal loan or cash advance loan, or they may be secured, like a mortgage or home equity line. Different Types of Bank Loans in India Personal Loans: When you apply and receive approval for the loan, you’ll receive the amount of money you requested to borrow in a lump sum. You pay back that money in instalments. The timeframe of those payments is determined by the specific terms of your loan. The interest rate on your loan is determined by your credit score. Personal loans can prove to be of great help when you wish to take a small loan and repay it as soon as possible. Credit Card Loans: Credit cards offer you a line of credit that can be used to make purchases, balance transfers and/or cash advances and requiring that you pay back the loan amount in the future. When using a credit card, you will need to make at least the minimum payment every month by the due date on the balance. Home Loans: A home loan or housing loan is the amount borrowed by individuals from financial institutions or banks to construct, buy or repair a residential property. Lenders provide the loan for a fixed tenure and charge interest on the amount borrowed, which has to be paid by the borrowers along with the principal amount. Car Loans: Indirect lending, you get a loan directly from a bank, finance company, or credit union. You agree to pay, over a period of time, the amount financed, plus a finance charge. Once you enter into a contract with a dealership to buy a vehicle, you use the loan from the direct lender to pay for the vehicle. Two-Wheeler Loans: A two–wheeler loan helps you purchase a motorcycle or a scooter of your choice and pay for it in equated monthly instalments (EMIs). Two–wheeler loans are available for both salaried and self-employed individuals. Education Loans: Education loans are sums of money you borrow for your education and pay back over time—in most cases, with interest. Loans will often be part of your financial aid offer from the school you attend. Look for grants and scholarships first, since those don’t have to be repaid. Loan Against the Insurance Schemes: Loan against an insurance policy, also known as pledging, is an extremely popular concept abroad. Such loans are issued by the insurance companies itself, or any other financial institutions that provide loans against securities. Loan Against Fixed Deposits: When you invest in a bank fixed deposit, you can easily get a loan against it without having to break it. This is similar to a personal loan. However, the loan is structured as an overdraft facility against your fixed deposits. In case of a company deposit, you can borrow after three months of investing. Loan Against Mutual Funds and Shares: The process is similar to the overdraft facility that bank accounts offer. You can avail loan against equity or hybrid mutual funds by approaching any non-banking financial company (NBFC) or bank. For the bank to consider your loan request, you need to pledge your mutual fund units as security for the debt 10 Best Banks for Personal Loan in India – 2018 #1. State Bank of India Personal Loan #2. ICICI Bank Personal Loan #3. HDFC Bank Personal Loan #4. Kotak Mahindra Personal Loan #5. Axis Bank Personal Loan #6. CitiBank Personal Loan #7. Bajaj Finserv Personal Loan Review #8. Bank of Baroda Personal Loan #9. Standard Chartered Personal Loan #10. Tata Capital Personal Loan

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