What Are The Types of Personal Loans in India?

It is vital to select the best personal loan type depending on your expense. Get to know about different types of personal loan in India at IIFL Finance.

1 Oct,2022 08:45 IST 34 views
What Are The Types of Personal Loans in India?

Most personal activities require adequate capital. However, sometimes, individuals may find themselves with inadequate savings or liquidity to cover the costs of personal activities. Some may not want to spend all of their life savings to cover a specific expense.

The ideal option is to raise capital through a personal loan that provides the needed capital through a flexible repayment system. However, as there are different types of personal loans, it is vital to select the best loan type depending on the nature of the expense.

This blog will help you understand different types of loans to fulfill personal needs.

What Are Personal Loans?

Personal loans are loan products that banks and NBFCs offer to fulfill certain expenses like marriage, education, vacation, home renovation, etc., or combat emergencies. Similar to other types of loans, personal loans also require the borrowers to repay the principal amount along with interest to the lender within the loan tenure.

Types Of Personal Loans In India

In India, lenders offer numerous types of personal loans to cater to different capital needs. The different types of loans are listed below.

1. Higher Education Loan:

Lenders offer higher education loans to borrowers to pay their tuition fees for college in India or abroad. The loan amount also covers various aspects of education, such as travel, accommodation, and more.

2. Medical Loan:

This personal loan type allows borrowers to cover the costs related to hospital or medicine. The loan sanctioned at the right time ensures timely treatment.

3. Used Car Loan:

A used car loan is one of the types of personal loans that provides capital to buy a used car without having to pay from their savings.

4. Home Renovation Loan:

This type of loan that provides funds to borrowers to cover the costs of their home renovation. It allows borrowers to effectively renovate their homes without eliminating their savings.

5. Small Personal Loan:

Small personal loan is an add-on to an existing personal loan if the borrower needs additional funds over and above the current loan.

6. Debt Consolidation Loan:

Borrowers can use personal loans to consolidate their existing debt into a single loan. It allows borrowers to repay their financial liabilities through consolidated monthly EMIs.

7. Travel Loan:

Among different types of personal loans, lenders offer a travel loan to cover the cost of domestic or foreign travel. Borrowers can use the funds to pay for hotels, flights, food, and more.

8. Wedding Loan:

Wedding festivities include numerous high expenses the borrower must pay. A marriage loan allows borrowers to raise immediate capital to cover every aspect of marriage expenses.

Avail Of An Ideal Personal Loan With IIFL Finance

IIFL Finance is India’s leading financial services company that provides comprehensive and customized personal loans to fulfill your capital requirement. You can also use the personal loan calculator to determine your repayment obligations. The personal loan offers instant funds up to Rs 5 lakh with a quick disbursal process. You can apply for the loan online or offline by visiting IIFL Finance nearest branch and verifying your KYC details.

FAQs:

Q.1: What is the loan tenure for IIFL Finance personal loan?
Ans: When taking a personal loan from IIFL Finance, borrowers can choose from a loan tenure between 3 - 42 months.

Q.2: What is the processing fee for IIFL Finance personal loan?
Ans: The processing fee ranges between 2%-4% + GST.

Q.3: How much time does it take for IIFL Finance loan amount disbursal?
Ans: The lender disburses the loan amount within 24 hours into the borrower's bank account.

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