There are countless banks and other financial organizations in the state who provide loans for personal reasons. Most of these loans are called personal loans. India is situating when it comes to providing these sorts of loans on among the greatest places.
Personal loans are only those retail loans which are provided with the aim of fulfillment of personal needs and expenses of people (future loan borrowers). The personal loans in India chiefly are provided under five important categories. Though the rate of interest and also the amount of the loan vary from bank to bank, but the functions of supplying personal loan these loans are same. Aside from the personal purposes, if someone possess the need to set up his own business then also the Indian banks consistently welcome by providing the company start-up loans. Here, we’ll discuss about these kinds of loans.
Consumer Durable Loans : – These are among the unique form of loans that are provided by the Indian banks to draw a growing number of folks towards them. Under this particular kind of personal loan, you’ll get an amount which range from Rs.10,000 to Rs.1,00,000. But there are several banks which supplies a minimum quantity of Rs.5,000 and the maximum sum of Rs.2,00,000 under this loan. Banks supply this loan for maximum of a time frame of FIVE years.
This kind of personal loan is supplied to help individuals to fulfill their personal and the desire of family during the holiday time. Typically, leading banks of India supply this loan on the festive season at discounted rate or more affordable. This is actually the better kind of loan for all those people who want to avail a tiny amount of loan. Under this kind of credit, banks do provide a minimal level of Rs.5.000 and you can get a maximum amount of Rs.50,000 under this type of loan. But the holiday loan is confined up to 12 months. Repayment is to be performed by equated monthly installments (EMI).
Union Loans: – Nowadays, this kind of loan that is personal is equally getting popular among the individuals of rural and urban sectors. The loan amount depends on various factors including age of the applicant, security pledged by the applicant (if bonded loan), repayment capacity of the applicant etc. Under the marriage loan, the prevailing market rate during the time when the outstanding loan is disbursed governs the rate of interest.