Types of loans in India
Friends, with the help of today’s article, we are going to know about the types of loans in India. And you will also know what is a loan, how many types of loans are there. Before going to this article about the loan, it is very important for us to know what is a loan, so let’s know what is a loan now.
What is Loan
In the coming days, you must have heard people mentioning taking a loan or loan to fulfill one or the other need. Where in earlier times people used to take loans from big moneylenders or lala people to meet their needs, in today’s era banks and many governments and private finance companies have done this. The job has been made very easy. For this, they have to apply for a loan in a bank or any finance company and on the approval of the application, they get the loan amount, which they get in monthly installments. To be returned with interest.
Actually in a country like India where the needs of middle-class families increase day by day but their income does not increase in that way and they keep struggling with the shortage of money to meet their every small and big need like building a house. Be it children’s education, taking a car or any other need of theirs, for which they can be helped in dealing with this sudden expenditure. In such a situation, these people have to take loans from banks to meet their needs, which they later pay back to the banks in the form of monthly installments from their earnings for a fixed period. In this type of loan, if the person wants, he can end it by paying a lump sum amount in the middle too. Different rules have been made in different banks to eliminate the loan outright.
what is the definition of Loan?
When a company or person takes a loan from a bank or a private finance agency to meet any of his personal needs, which is given to him with some interest. If the lender has to repay within the stipulated time frame, then it is called a loan or loan. By the way, many types of loans are available for different works, such as if someone wants to build a house, then he should take a home loan and if a person needs a loan to fulfill his personal need, then For that there is a personal loan. Similarly, if a person takes a loan for the higher education of his child, then this type of loan is called Education Loan.
How many types of loans in India
When a person goes to the bank and applies for a loan, the first question that the bank executives ask the customer is what type of loan they want. . It simply means that what is their need, because the banks clearly believe that the loan is as needed. For this, you have to tell your need to the bank executives that for what needs you want to take a loan from the bank. Let us know what types of loans are available in the bank.
The loan given by the bank to meet the personal needs of a person is called Personal Loan. Generally, this loan comes under the category of unsecured loan. The interest rate in this loan is higher than other loans. Most of the banks give their customers the facility of taking a personal loan. For this, they check the person’s civil score and his income, etc.
With the loan money taken in this way, a person can also use his personal needs like wedding expenses, to go somewhere or to buy something for himself. Generally, it is very easy to get a personal loan, just the person should have a good loan record and should not have any loan already running on it.
Most people keep getting calls from banks for this type of loan. But before taking a personal loan, it is very important to know about its interest rate. Because as mentioned earlier, in this type of loan, banks charge more interest than the customer. That is why, unless there is an extreme need, one should avoid taking this type of loan.
In this fast-paced life of the metropolis, today everyone wants their own small home. For people who want to buy or build their own house but do not have enough money to buy their own house. Such people can make their dream of home come true by taking a home loan. To such customers who are willing to take a home loan, the bank gives the loan, considering the value of the property and their repayment position. Which these customers have to pay with interest in twenty-thirty years since the time of repayment of the loan is very long, so the consumers do not have any problem in repaying it, they take it comfortably in monthly installments.
It is the dream of every parent that they can give a better future to their child. Whose worry starts after the child finishes high school. When a parent wants to make their children a Doctor Engineer or some kind of Professional Degree Course and the parents do not have enough money for their education, in such a situation, the child’s parents are very worried. In such a situation, raising money for the child’s education for the parents is not less than chewing iron grams.
For studies, the parents of the children give a loan, which is called an education loan. With this loan, children pay the fees of their studies and when the child joins the job after completing his studies, then the same student takes that education loan in monthly installments (Bank) ) pays. Most of the banks approve this type of education loan for children, just for this, a guarantor is needed, on whose responsibility this loan is passed. The guarantor can also be the parents of the child or any other relative of the child. Which has an account in the same bank in India.
The second biggest dream of every Indian after having a home is that of a car. Everyone wants that they go somewhere with their family, for which they must have at least one car. Car for middle-class families is no less than a dream even today. People would have a lump sum money to buy a car, nor would they be able to buy the car of their dreams. But banks have made this difficulty of the people very easy. Usually, all government and non-government banks provide a loan to buy a car for the job profession and those doing their business, this is why it is called a car loan. For this, any person who is willing to buy a car can buy a car according to his mind by taking a car loan from the bank. The interesting thing is that banks charge very little interest on car loans.
In a developing country like India, where unemployment is a big problem. Even after having a lot of education, many young minds keep roaming idle due to lack of job. To rectify this situation, the Government of India has started various schemes. Such as Jawahar Rozgar Yojana, Pradhan Mantri Mudra Yojna, and there are many other such schemes in which any unemployed small or big business can start their business from fifty thousand to 10 lakhs. Loan can be taken. So business loan is that in which we can start any business or any of our employment by taking loan from bank.
If there is life, then there are also problems, there are small and big problems in the life of every person. To improve their standard of living, people buy land, accumulate jewellery, buy vehicles and accumulate every comfort to make life better. But when suddenly some trouble comes when there is a need for a lot of money, so much money that it takes us years to earn.
In such a situation, we have an option of ‘Property Loan’. In which we can take a loan by mortgaging our house, land or farm, etc. with the bank. This type of loan is called a property loan. Whenever a person or organization wants to take this type of loan, the bank, first of all, assesses the value of the property in terms of its market value.
After that, the bank also sees whether you will be able to repay the amount to be taken within the stipulated time frame. Looking at all these things, the bank determines the amount of loan to be given to you. This loan amount can be fifty to seventy percent of the value of the property. In this type of loan, the bank gives up to fifteen years to repay the loan. Which has to be repaid by the borrower along with interest in the form of monthly installments.
Very few people are fully aware about Project Loan. This type of loan is taken from the banks to complete any of its projects. This is usually the most difficult loan to get. Unless the bank is completely sure that you will make a profit on the completion of your project and you will not repay the bank’s loan with interest within the time limit, then the bank will make such a loan. does not accept.
The gold loan can prove to be very effective in dealing with the cash crisis. The gold loan allows borrowers to meet their money needs by monetizing their gold jewellery. Most of the lenders disburse the gold loan within a few hours of applying for the gold loan. The gold loan can go up to 75 percent of the gold price decided by the lender. The interest rate on gold loan starts from around 9.10 percent.
Cash crisis can also be tackled by taking loan against credit card. Credit card issuers offer pre-approved loans to their existing cardholders based on their card type, spend and repayment. On availing the loan by the cardholder, his credit limit is reduced by that amount. However, some lenders offer loans beyond the sanctioned credit limit and against credit cards.
COVID-19 Personal Loan
In this critical time of the Corona Virus Pandemic, some banks are also offering COVID-19 Personal Loan to their existing customers to help them. COVID-19 personal loans have been launched by many leading banks across the country. Banks that have launched COVID-19 personal loans include Bank of Baroda, Punjab National Bank, Indian Bank, Union Bank of India, Maharashtra Bank, and Bank of India. Kovid-19 personal loans have zero processing fees and also low-interest rates. If your bank is also offering a COVID-19 personal loan, you can take advantage of it to solve your cash crunch.
Loan Against Property
A person can also deal with the cash crunch by taking a loan against his property. Banks offer loans against commercial, residential and industrial properties. The interest rate on loan against property starts from around 8.95 per cent. It depends on the loan lender, loan amount and credit profile of the applicant. Loan against property can go up to a tenure of 20 years. The loan against property amount depends on the valuation of the property of the customer and the repayment capacity of the borrower.
Digital Top-up Home Loan
Those who already have a home loan may find it difficult to get another loan. In times of cash crunch, such people can opt for a digital top-up home loan. The interest rates on this loan are usually lower as compared to other loan options available to the existing home loan borrower.
- You can fulfill your dreams by taking a loan
If your financial condition is very weak and you want to do something big by pursuing further studies, then you can take a loan, taking a loan here will be considered beneficial for you because here you can Taking a loan to fulfill your dreams. But you take the loan only when you believe in yourself that you can achieve the position you want to achieve, otherwise, there will be many problems to repay that loan later.
- You can make your business bigger by taking loan
If you want to make your business bigger then you can take a loan because by expanding your business you can fulfill your dreams, every person has someone or the other. It is a dream-like someone has a dream of getting a house, someone has a dream of buying a car, someone has a dream of getting an iPhone, when you grow your business, then you are able to fulfill all your needs and more. Can become rich.
- You can take a loan at the time of emergency
Sometimes suddenly everyone has some emergency when he has no other option but to take a loan to complete that work. You can take loan in time, any person can have many emergencies like sudden medical emergency coming in family or in any other kind of emergency you can take loan
- You can start a business by taking a loan
If you want to start a business and you have a lot of money, then you can start your business by taking a loan, you can start with less investment first, later more If you start benefiting then you can increase it further.
- You can take a loan to buy a house
If we talk about those people who can earn 20 to 25 thousand rupees in a month, they will have to save money for a long time to buy a house, only then they can buy the house, you can buy a house for yourself quickly by taking a loan and Later on you can repay the home loan Take it because taking a home loan is good for those who do a good job or are a businessman.
- Can take loan for further studies
We see that many people have a dream to do something big for themselves and society by reading and writing, but this dream can be fulfilled only by those whose financial condition is right but those who lack money, those people pursue further studies. At such a time, you can take a student loan, today in most villages people are not able to complete their studies due to lack of money, and start doing any small job to take care of their family, so that they have no money. The shortage always remains, today the bank is giving student loans at low rates, so if you want to pursue further studies, you can take a loan and continue your further studies.
- How does the bank give loan (Processor of Loan)
When a person or company applies for a loan from the bank, then the bank will ask the person or company before giving the loan to its customer. The consent of this first decides that what percentage of interest-monthly interest he will have to pay on the given amount and he has to return the loan amount with interest in how much time. Before giving any kind of loan, the bank satisfies that whoever it is giving the loan is eligible to return this amount or not. For this, the bank examines how much property the borrower has and how much is his market value. The bank or the finance agency also warns the person taking the loan that if their loan is not returned with interest in time, then in such a case their property will be returned to the bank or Can be confiscated by the finance agency. Similarly, if a person buys a car by taking a loan from the bank and does not return it within the stipulated time frame, then the bank seizes that car and recovers his money.
- How do loan plans work?
Earlier many customers are taking money from any financial institution as a loan, they have to agree on some terms and conditions related to it. These conditions include the due date of each month to repay the loan, the time taken to make full loan repayment, the interest rate to be added on the principal amount, any assets to be deposited as collateral (if required) . As when a customer repays the EMI of his loan, a part of it as interest, is added to the principal amount plus the total amount of EMI to be paid.
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smart way to take a loan
Understand your loan taking capacity
Never take so much loan which cannot be repaid by you. Understand your potential as to how much loan you should take. Understand the difference between your debt and your income. Before taking a loan, you must know how much EMI you will have to pay. Make sure that your EMI should not exceed 50 percent or more of your income. Be sure to keep its ratio in mind. Debt burden on income can trouble you a lot in future.
Be on the lookout for lower loan rates
Keep an eye on the interest rate in the market. Many banks often keep on taking out offers about the rates. Go wherever you can find lower rates. You can also get your account transferred by getting lower rates in other banks.
take short tenure loans
Try that the tenure of repayment of the loan is short. The shorter the loan tenure you take, the lower the rate you will have to payout. Banks often provide long-term loans to take EMI payments every month for a long period of time, but calculate your EMI payments and take short-term loans as per your convenience.
Complete the loan documents Read carefully
Read through all your documents to understand your loan process and all the details. Never sign a blank document. Understand all the nuances of your loan process.
Repay the loan on time
Obviously, the most important thing after taking a loan is to repay it on time. Pay off your loan on time. Keeping your payment organized also saves you from paying unnecessary interest and penalties. Also, if you have a good history, then it is easy for you to take other loans in future.
How poor families can take loan
Poor can take loan through Pradhan Mantri Mudra Loan Yojana
This scheme was started by the Prime Minister of our country in the year 2015. People who need loan and want to take loan can get loan through this Pradhan Mantri Mudra Loan Yojana. Let us tell you that a loan of up to 10 lakh can be taken under this scheme, people who want to start their own business or poor people need loan, then they can take loan through this scheme.
The purpose of this scheme is that there are many poor people who need money but they do not get loan from anywhere or many people want to establish their business but due to lack of money, they are unable to do anything for those people. For this, the government has run a scheme so that they can get loans. If you want to take a loan from this scheme, then you can apply by going to the bank by downloading the application form from its official website.
Important things to remember while taking a loan
You can do a little research before taking your loan so that you can find the person or institution giving you the best or cheap interest rate, you can choose the repayment plan You can choose to repay your loan, which is easy to maintain, as well as see the terms and conditions for premature repayment of the loan taken and any additional charges.
Friends, I hope you have liked my article Types of Loan in India very much. And you must have known everything about it and you must have understood and must have also known that there are many types of loans in India, friends, in this article, we have told you about the loan in full detail. . So if you must have faced any problem in reading our post, then you can feel free to message in our comment box, our group will definitely reply to your message. Thank you.