Types of Personal Loans

A personal loan is a quick and easy to acquire a loan that can be taken for diverse uses. While most of us would know about PLs, not everyone may know that there are different types of personal loans. Most of them come with hardly any end-use restrictions, making them all the more popular.

If you, too are looking for a personal loan to sort out an upcoming expense, read on to understand the different types of personal loans. A clear understanding will help you pick the best one for yourself.

 

1. Education Loan
Whether it’s for yourself or a loved one, a personal loan for education can make getting into a preferred institute easier. You can use the money for your tuition fee or hostel expenses or other requirements.
2. Travel Loan
Are you an ardent traveller but are running short of funds? Well, a travel loan can help you plan your holiday easily. Most travel loans come with built-in travel insurance, making it all the more worthwhile.
3. Wedding Loan
In India, weddings are considered to be the biggest event of one’s life. Though people start saving for the day much in advance, a personal loan for a wedding can easily help in bridging the gap between needs and dreams.
4. Home Renovation Loan
Renovation can be heavy on the pocket. A personal loan for home renovation will help you remodel your home, replace the electronics or redo the exteriors etc.
5. Consumer Durable Loan
Want to do home decor? Planning to buy a new TV or an AC? You can easily get a loan amount of INR 5 lakhs for such requirements.
6. Medical Emergency Loan
If you do not have enough medical insurance coverage and are in need of money urgently for the treatment of a loved one, you can quickly get a loan. Some banks and institutes offer concessional rates when taking loans for Covid-related hospitalisation.
7. Agriculture Loan
Offered at comparatively lower interest rates, agriculture loans can provide much needed financial support to farmers.
8. Personal Mobile/ Computer Loan
As the name suggests, you can take such a loan to cope up with the technology-driven era of education or the Work-From-Home scenario.
9. Debt Consolidation Loan
Struggling to pay off that high-interest loan or the credit card bill? Consolidation of debt can become easier with the right kind of personal loan.

Why take a Personal Loan?

Personal loans are unsecured loans. This means that you need not pledge collateral to get a loan. This makes them easy and convenient. Also called speedy loans, PLs generally require very little documentation and are generally disbursed quickly. More than anything else, the lender has to trust your creditworthiness. It should be clear that you will be able to repay the loan on time, making the eligibility for different types of personal loans rather simple.

In Conclusion

Use an online personal loan calculator to get a fair idea of how much EMI would you have to pay against a personal loan that you wish you take. The online personal loan calculator allows you to increase/ decrease the variables so that you come to a well-thought-of amount.