Every individual has different financial requirements; there are different types of loans in India which is designed to suit these needs. However, it is important to use the right loan, in the smart way to manage your funds in the long run. There are many types of business loans in India, and the good news is the application process is a lot more streamlined than you think! A loan for any amount is handled by the loan officer who is your touch point for the entire process.
As the name suggests, a home loan is used to purchase a property. Apart from purchasing property, the home loan can also be used for other purposes such as repairing or extending your home or even uses it to purchase land. But you should always consider few things before applying for Property or Home Loan.
The personal loan is one of the most popular types of loans in India. It is designed to suit any miscellaneous financial requirement that you require. Whether you want to purchase the latest electronic gadget or even go for a small vacation, this is the best form of financial aid you can opt for. Additionally, it can also be used to pay off any emergency debts you may have. However, while it might be flexible, it comes under the category of unsecured loans. Therefore, you will be required to pay a high-interest rate for this loan.
After the personal loan, the gold loan is one of the popular choices of loans in India. Plenty of individuals invest in gold during auspicious times or on celebratory occasions. With a gold loan, the gold is provided as collateral, with the loan amount anywhere between 70 to 80% of the gold value. Even the interest rates for this loan type are low, making it one of the most affordable loans in the country.
As the name suggests, the vehicle loan can be used to purchase a two wheeler or a four wheeler vehicle. This comes under the secured category loan, with your vehicle as collateral. The loan amount for this type of loan normally comprises anywhere between 70 to 80% of the loan amount you require, with the remaining amount as a down payment from your end.
Pursuing a higher education within the country or abroad is now an expensive affair. One would not only need to keep in mind the academic requirement but also other expenditures such as hostel stay, stationery acquisitions and even required equipment for your academic course. Through this type of loan, all the factors that affect one’s academic are met financially. And you need not worry about repaying the loan immediately after your course is done as most financial institutes offer a grace period of 6 to 1 year before initiating the repayment process.
Plant and machinery loans
For any business to expand or grow, they need to increase their production. This in any industries requires them to purchase a new plant or machinery. The plant and machinery loan is an SME loan which is provided by financial institutions to allow the individuals to make the most of it help their business grow. The institution provides a maximum loan amount of 10 crores for a tenure of 6 years. The primary security which the borrower has to provide to the financial institution includes the plant of machinery purchased.
Medical equipment loans
Small and medium medical business can find it hard to survive in the ever-changing market with new inventions and innovations arising each year. Purchasing new medical equipment is an expensive affair and can make it difficult for any start-up medical business to remain relevant and compete with larger brands. Financial institutions have designed the medical equipment loan to help such businesses get the finance they require to purchase new equipment. The maximum loan amount offered is ten crore. The only catch is that the equipment must be provided as security to the financial institution. In the event where the borrower is not able to repay the loan, the institution will sell the equipment to recover the loan amount.