What type of loans is there?

Hello sir I would like to know the types of various loans offered by banks in India so please provide me information about the same.

[Pathak]

The loan is given to individuals after accessing their credentials based on their profession or business, or any other sources of income.

Types of Bank Loans Offered by Banks in India

1. Home Loan

Home Loans are taken for construction of home, home renovation, home extension, buying of property or land, or payment of stamp duties.

Some types of home loans are mentioned below:

Home Purchase Loan
Land Purchase Loan
Home Construction Loan
Home Extension Loan
Home Renovation Loan
Stamp Duty Loan
NRI Home Loans
Loan Against Property

2. Personal Loan
This type of loan is given to individuals after accessing their credentials based on their profession or business, or any other sources of income.

The span of personal loan repayment varies from 12 months to 60 months depending upon the principal amount and the EMIs.

The interest rate ranges from 15 percent to 28 percent varying from bank to bank.

3. Business Loan

This type of loan is provided to either existing businesses or those venturing into new business.

As banks provide loans on the basis of individual's credentials

For existing businesses, loan is provided in the following ways:

Term loans – Amount provided for a fixed tenure at the applicable interest rate: three years for short term loan and 10-15 years for long term loans.

Bank overdraft limits – Ability to withdraw more money than what is deposited.

Bill Discounting – Short-term borrowing used to improve a company's working capital and cash flow position.

4. Education Loan
Required by and provided to students who want to pursue higher education in resident country or abroad.

Students should have an admission offer from an institution before they apply for an education loan.

For studying in India, Rs. 10 lakh is the average and for studying abroad, the average is Rs. 20 lakh.

5. Gold Loan

Gold loan is imparted only on providing gold as security to a bank or any other lending institution.

Amount ranging from Rs. 5k to 25 lakh can be taken as loan against gold.

6. Vehicle/ Car Loan

Compared to other loans, it is easier and simpler to take vehicle loans.

Vehicle loans involve less paperwork and around three to six working days are required to get the clearance.

The interest rates vary from bank to bank based on their base rate.

The repayment process involves monthly EMIs and early repayment options.