Different Types of Personal Loans in India

Introduction

Personal loans can be of great help when you need urgent financing. Whether you need money to tackle a medical emergency, meet your wedding expenses, fund your child’s education, plan a foreign trip, or make a big-ticket purchase, you can apply for an online personal loan and get instant funds in your bank account.

Moreover, personal loans are collateral-free loans, which means that you won’t have to put your personal or professional assets on the line to qualify for financing. However, you might not be aware of several types of personal loans available in India. Banks and non-banking lending institutions offer different kinds of personal loans to cater to the diverse requirements of borrowers.

Below are the different types of personal loans that you can apply for based on your precise requirement:

1. Wedding Loan

Marriages are considered an extremely important event in India. However, it also brings a host of expenses for things like venue, catering, jewellery, decoration, guest accommodation, etc. These expenses can easily pile up to burn a large hole in your pocket. A wedding loan can help you fund all wedding-related expenses without any hassles. It ensures that you won’t have to squander all your life savings or turn to friends and family for help.

2. Travel Loan

As the name suggests, you can avail of a travel loan to meet all your travel-related expenses, such as booking flight tickets, hotel accommodation, shopping, dining, and much more. Some travel loan providers also offer the additional benefits of travel insurance to protect you from incurring unnecessary expenses during your trip. You can take a travel loan to plan a honeymoon with your life partner or a foreign trip with your friends or family.

3. Education Loan

To assist students in financing their education, many lenders provide education loans. You can apply for this loan for your children to cover costs such as tuition, books, uniforms, hostel fees, college or school fees, or any other academic requirement. An education loan can also be taken for funding higher education in an Indian or international university.

4. Home Renovation Loan

A home renovation loan is designed to help you meet the expenses required for repairing, remodelling, or refurnishing your house. So, whether you need financing to replace your floor tiles, repaint your entire house, or buy new furniture, you can apply for a home renovation loan and get the job done. This type of personal loan is also known as a home improvement loan.

5. Festival Loan

Festivals in India are usually celebrated with a lot of enthusiasm. People throw parties, distribute sweets, and decorate their houses during the festive time. However, this may result in hefty unplanned expenses. A festival loan can help you meet all additional expenses incurred during festivals without deranging your financial planning.

6. Medical Emergency Loan

A medical emergency often comes unannounced and wipes away all your savings in one go. The rising medical expenses and hospitalisation bills can take a heavy toll on your pocket. In such a situation, a medical emergency loan can be a lifesaver. It can help you get immediate access to finances and tackle all your urgent monetary requirements without getting bankrupt.

7. Consumer Durable Loan

A consumer durable loan is a special type of personal loan provided for purchasing costly appliances and gadgets, such as air conditioners, refrigerators, washing machines, TVs, laptops, smartphones, etc. You can apply for an instant consumer durable loan from the convenience of your home/office and get the finances in your bank account within 24 hours.

To conclude

In addition to the previously mentioned, some lenders provide a few other personal loan options, including pension, agriculture, and debt consolidation loans. You can apply for a loan as per your specific requirement. You should also compare interest rates and loan features to choose the right lending institution.

Disclaimer: ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The non-broking products / services like Research, etc. are not exchange traded products / services and all disputes with respect to such activities would not have access to Exchange investor redressal or Arbitration mechanism.