What Are the Different Types of Personal Loan in India?

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Uncertain events like the financial instability induced by the unprecedented COVID-19 pandemic could be constraints to achieving your dreams or covering the cost of an unexpected unfortunate event such as a medical emergency. In such a scenario, a personal loan in India can help you manage your finances.

Personal loans are the most popular loans among Indians because they serve multiple purposes and come in different types. India has seen tremendous growth in personal loans taken by salaried individuals and business owners in the past few years.

Much of its popularity stems from benefits like multipurpose usage, collateral-free, quick documentation, easy repayment methods, and lower interest rates. It is one of the best solutions to immediate financial requirements. Here are the different types of personal loans offered in India.

Different Types of Personal Loan Offered in India:

  • Wedding personal loan

A wedding is an exceptionally significant event in Indian culture. Whether it is your wedding or a family member’s wedding, you will do everything in your power to make it the most memorable event of your life.

A wedding comes with a long list of expenses, from catering to decorations. A personal loan in India can be availed by the groom, bride, or family members. A personal loan amount is usually customized as the individual’s needs.

  • Home renovation loan

It is easy to apply for a home loan, but we hardly consider it when we have to renovate our houses. The cost of renovation can be a burden on our finances, so we postpone it or compromise on certain aspects to manage the cost.

Banks identify these needs and offer home renovation loans to cover the cost of repairs, new construction material, laborer’s charges, etc. Furthermore, a personal loan to renovate your house could also boost its total economic value in the real estate market.

  • Education

It is among the most popular personal loans and has existed for decades. With the rising college fees, not everyone can afford to pay for his children’s education. Therefore, parents sign up for education loans, and their kids then take over and pay it up after finishing their education.

It is also known as school fee funding, which can also be used to pay the tuition fees or fund a big academic requirement like going abroad.

  • Travel loan

We all have one dream vacation that we want to take, but not all of us can go that dream vacation. Falling short of funds could be a constraint to fulfilling our dreams. However, opting for a personal loan in India is the best option to cover the cost of travel.

A travel loan is designed to cover the cost of flight tickets, hotels, shopping, and travel insurance. You can travel anywhere you want without worrying about expenses.

  • Medical loan

A personal loan is the best option to meet your financial needs in times of medical emergency when you or your loved one require urgent cash. You can take care of yourself or your family members at the moment and worry about the funds later.

Conclusion

While applying for a personal loan in India, make sure you have the relevant documents ready. The documents needed depend on your status as a salaried or a self-employed person.

One thought on “What Are the Different Types of Personal Loan in India?

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