What Are The Types Of Personal Loans In India?
When one needs money in a hurry, a personal loan can be the best option to tide over a sticky situation.
A personal loan is essentially an uncollateralized loan that can be used to meet any personal emergency. These can range from an unforeseen medical bill to a child’s school fees to that much-needed home repair that can cost a significant amount of money which one may not readily have at hand.
A personal loan can be of various types, depending on the purpose for which it is used.
Medical Loan:
In the unfortunate event of a medical emergency, a medical loan can help pay the hospital bills, so that no one or their loved ones have to suffer for want of money.Home Renovation Loan:
This is the best option for getting home renovations and repairs done. If one is falling short of money, a personal loan for home renovation can come in handy. The borrower can keep paying back the loan and the interest due in easy instalments after the renovation is completed.Wedding Loan:
A marriage is a joyous occasion for any family. So, if a young couple or their family members are falling short of money that they think can make their wedding a truly special day to remember, a personal loan can be especially useful. This can help young couples keep their savings intact, as they plan their future together.Travel Loan:
A travel loan can come in especially handy if you want to take that dream vacation with your loved ones but are falling short on money. A travel loan can easily help you fund your travel plans across India or abroad.Higher Education Loan:
A personal loan can help fund the education of a loved one, by paying for other aspects like boarding and lodging, living and travel expenses as well as cover a part of the tuition fees. A higher education loan can be availed for higher education across India and abroad.Debt Consolidation Loan:
A borrower can consolidate all their outstanding debts into one loan. Not only can this help them get a good rate of interest but also help manage all the monthly installments better, as they can pay off a part of their entire debt in one shot, instead of keeping track of and having to make separate payments.Used-Car Loan:
If someone wants to buy a cheaper second-hand car, they can take out a personal loan to help them make the purchase. Since a used car is usually significantly cheaper than a new model, they can pay off the loan easily and without much hassle, in small and easy monthly installments.Conclusion
A personal loan can help you overcome a financial shortfall in several situations. It can help tide over a difficult medical situation with ease and also help make a joyous occasion, like a wedding, a memorable affair or help you take that once-in-a-lifetime holiday with your loved ones.
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