"If you are looking for a personal loan, we have discussed all the different types of personal loans. Read our blog to apply personal loan online for your needs."
Published: 9 November 2023
Updated: 9 November 2023
The article will make you understand about different types of personal loans that are available in India. Before jumping into the types of personal loans let's first start with what is a personal loan. In simple terms, a personal loan is an unsecured loan that is provided by banks and NBFCs to borrowers who have passed the eligibility criteria. A personal loan can be taken for various purposes like debt consolidation, traveling purposes, planning a perfect wedding, etc. A personal loan is a multi-purpose loan that can become your helper in passing the hurdle of financial fitness.
Life can not always be fair to you, there are points in life when we find ourselves stuck in a financially unstable situation. At that time the best possible solution is to apply for a personal loan. A person can get a personal loan if he has a credit score of more than 750, stable income proof, and address proof. Each lender has different eligibility criteria, hence, a person should go through the terms and conditions before applying for a personal loan from a lender. The article below will explain to you about different types of personal loans.
There are many different types of personal loans, we have discussed each loan below in detail about its eligibility and the documents that may be required to avail of one.
A marriage loan, in simple terms, is a type of financial assistance provided by banks or lenders to help cover the expenses of a wedding. It allows couples to borrow money to pay for various wedding-related costs, such as venue rental, catering, decorations, and more. The loan typically comes with a fixed interest rate and a specific repayment plan. Couples can use the loan to ensure their dream wedding takes place, but they'll need to repay the borrowed amount over time, which might include monthly installments. It's a way to manage wedding costs without having to save up for everything in advance.
Check out the criteria for your eligibility to get a marriage loan.
1. Nationality: Indian
2. Age: 21 years to 67 years
3. Employment Status: Employed with MNC, private, or public companies.
4. CIBIL Score: 700 or higher
5. Minimum Salary: The minimum salary for a wedding loan should be Rs. 22000.
Below are the documents that must be needed while applying for a marriage loan online.
1. PAN Card, Aadhaar, Passport, Voter ID card
2. Salary Slips for the last three months
3. Employee ID card
4. Bank Account Statement for the last three months
A travel loan, in simple terms, is a financial product offered by banks or lenders to help individuals fund their travel expenses. It allows people to borrow money for vacations, trips, or adventures they might not otherwise afford upfront. These loans come with fixed interest rates and specific repayment terms, enabling borrowers to cover costs like airfare, accommodation, and activities. Travel loans provide the flexibility to explore the world and create memories, while borrowers gradually repay the borrowed amount through scheduled installments. It's a way to experience travel without the need for immediate, large out-of-pocket expenses.
Eligibility Criteria for Holiday Loan are mentioned below:
1. Nationality: Indian
2. Age: 21 years to 67 years
3. Employment Status: Employed with MNC, private, or public companies
4. CIBIL score: 700 or higher
5. Minimum Salary: The minimum salary for a holiday loan should be Rs. 22000
Below are the documents that are required for a travel loan.
1. KYC documents of the applicant such as PAN Card, Aadhaar, Passport, Voter & ID card
2. Salary Slips for the last three months
3. Employee ID card
4. Bank Account Statement for the last three months
A Personal Overdraft is a line of credit offered by banks to their customers. Eligibility typically depends on a stable income, a good credit score, and an existing relationship with the bank. Documents required often include identity and address proofs, income statements (such as salary slips or tax returns), and bank statements. The overdraft limit depends on the applicant's financial stability. Once approved, you can withdraw funds beyond your account balance, up to the approved limit. Interest is charged only on the amount used. It provides flexibility in managing sudden expenses, but it's crucial to repay the borrowed amount within the bank's terms to avoid high interest costs.
A Home Renovation Loan is a financial product designed for homeowners to fund house upgrades or repairs. Eligibility criteria often include a stable source of income, a good credit score, and proof of property ownership. Documentation requirements typically comprise identity and address proofs, property documents, detailed renovation plans, and cost estimates from contractors. Lenders assess the property's current value and the proposed renovation's potential to determine the loan amount. The loan covers expenses like construction, materials, labor, and other related costs. Interest rates vary, and repayment terms are structured based on the borrower's financial situation. It's a helpful way to enhance and maintain your home.
A Top-Up Loan is a type of additional borrowing option available to individuals who already have an existing home loan. Eligibility typically requires a consistent repayment history on the original home loan, a certain loan tenure completed, and a maintained property value. Documentation usually includes income proofs, property documents, and a statement of the existing home loan. The loan amount is calculated based on the outstanding balance of the original home loan and the property's current market value. Interest rates are competitive. Top-Up Loans can be used for various purposes like home improvements, education, or other financial needs, making it a convenient financing option for homeowners.
A medical loan is one of the personal loans that is given by the banks and the NBFCs to people who are facing financial issues related to medical problems. Hospital bills sometimes haunt our lives and this can be a real stress. There comes the need for a medical loan. The personal loan for medical purposes is a one-stop solution for the people. The loan can be approved at a low-interest rate starting from 10.50% P.A. The documents required for the personal loan include KYC Documents, income certificates, and stable employment.
An advance salary loan is one such personal loan that is given to salaried employees if you are facing financial difficulties in the mid-month. An advance salary loan as the name suggests is the one that is approved based on your salary and credit score. A loan amount shall be given to you if you have a credit score of more than 700. Get your loan advance salary loan approved in no time.
The above article defines the different types of personal loans available in India. You can get personal loan online easily from My Mudra. A personal loan interest rate starts from 10.50% P.A. Get documents handy and apply for a personal loan. My Mudra is your one-stop destination for taking financial aid.
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