In today’s world, the living standard of individuals are really high. In order to maintain the growing needs to maintain the living standard, you can opt for loans. Loan is nothing but an amount of money you take from a financial institution to meet your needs with the commitment of future re-payment of the principal amount and the interest. Principal is the amount of money you borrowed and the interest is the amount charged for borrowing the money.
Loans can be of two kinds- Secured and Unsecured Loans.
In case of Secured Loan, you can borrow the money against an asset or collateral as a security for the lending institution. In case you fail to repay your loan, the lending institution can take possession of your asset kept as security.
In case of Unsecured Loan, you can borrow money without keeping any asset as collateral to the lending institution. In case you fail to repay your loan, the institution has no right to take possession of any of your asset. The risk factor of financial institution is quite high for unsecured loan, so the interest charged is quite high as compared to the Secured Loan.
Loans can be of different type as per our requirement. So, here we will discuss about the different types of loans provided by the financial institutions to satisfy our needs.
You can take Personal Loan to meet your financial needs such as- any medical emergency, wedding purpose, for any vacation etc. Here, there is no restriction of using this loan. You can use personal loan to satisfy your any demand. Personal Loan is an unsecured loan which involves minimum documentation, easy approval process and competitive interest rates.
The eligibility criteria for Personal Loan are-
To meet the higher education expenses of the meritorious students, student loan is taken. Under this loan, the students with excellent education qualification are able to study in renowned educational institutes in India as well as abroad. Student Loan is a secured loan.
The eligibility criteria for Student Loan are-
To cater to the requirements of the business professionals, business loan is an ideal option. The requirements can be- business expansion, to meet any financial need of the business etc. Business Loan is unsecured loan which involves minimum paperwork and hassle free approval process.
The eligibility criteria for Business Loan are-
Today, owning a car is a bare necessity. With the help of a car, you can maintain a good standard for both personal and professional life. You can easily buy your own car by going for car loan and repaying it through EMIs. Car loan is a secured loan against the car itself.
The eligibility criteria for car loan are-
If you want to buy your own house by taking a loan, you can opt for Home Loan. Home Loan is top selling banking product to cater to the need of the customer.
Home Loan can be of following types-
Home Loan is a secured loan against the home itself.
The eligibility criteria for home loan are-
The minimum and maximum age limit are – 24 years and 61 years respectively.
The minimum interest rate is 8.35% (differs accordingly).
The process to get Personal Loan is very easy and customer-friendly.
Here we will discuss, the procedure to get Personal Loan-
Firstly you need to decide the loan amount you need to lend. Then you need to compare the interest rates and other features of different financial institution. After comparing, you need to figure out and decide on that lending institution that suits your need fully. Then, you need to satisfy the eligibility criteria (including your CIBIL Score) of the financial institution to apply for the loan.
To apply for the loan, you need to submit the required documents along with your loan application. The following documents need to be submitted-
After successful submission of the required documents, the verification process of the institution starts. You need to cooperate for physical verification and on calls too.
Based on the positive verification process, your loan application gets approved.
Following the approval of the loan, the banking officials contact you for the disbursement agreement.