There are multifarious loans that are available for people in India. From buying houses to setting up a personal business all can be done wit the aid of loans that are available in the market today.
Let us have a look at the different kinds of loans that are available today
Home loans: home loans are availed by people who want to buy homes or make any construction or perhaps renovation and extension of their houses, apartments or flats. They can also be made use of while trying to procure land or payment of stamp duties. The home loans available in India have fixed and at times adjustable rate of Interest and the payment terms are fixed and adjustable too. There are various kinds of home loans as well. They are well categorised into the following groups.
1. Home purchase loans
2. Home construction loan
3. Land purchase loans
4. Home extension loan
5. Home renovation loan
6. Loan against property
7. NRI home loan
The individual who wants to procure a personal loan from a bank or a financial institution has to first get his credentials verified, his credit ratings are then checked. All of this is done based on the profession they are in and what is the source of their income and whether they have a regular income or not. The personal loan can be utilised for any personal purpose. It might be used for a wedding, personal expenditure, vacation spends so on and so forth. The personal loan requires no collateral and security. This is another reason why the interest rates of the personal loans are pretty high because of the stakes. The loan processing fees amounts to two percent of the total loan amount. The disbursement takes about a week from the date of the application of the personal loan and the interest starts off only when the disbursement of the loan has been done.
Educational loans are mostly utilised by students in order to fund their education. This loan is generally availed for higher education. This loan helps the students with their fees of the institution that includes, examination and library fees;travel expenses for abroad, costs of books and equipment that are required. This loan also includes any insurance for the student. The loan also includes additional expenses of thesis, project work, educational tours so on and so forth. The terms of the educational loans are different with different banks. For studying in India Rs 10 lakh is the average and for studying abroad Rs 20 lakh is the average. For an amount of around Rs 4 lakh the parents should be the joint borrowers and for an amount that is above that a tangible asset security is required. The repayment begins between six months and two years of the completion of the course.
It is much easier to avail a car or a vehicle loan when compared to the other loans in the market They involve lesser paperwork and around a week’s time to be processed and getting the clearance. The interest rates vary from various banks and that depends on their base rate,. Repayment is the same old EMI’s and it also has early repayment options.