Types of loans one can avail

1. Types of Loans Available In India In times of financial crisis, loans can be a great way to alleviate the stress. Loans can be applied for numerous events, be it for higher education, wedding, new business venture, or a new house. However, the trick is to pick the right type of loan to suit your needs. The classification begins with two major categories: secured and unsecured loans. Read on to know more about them. Secured Loans A secured loan is one wherein there is a collateral backing the application. This way if the borrower defaults on the repayment, the lender can possess the collateral in exchange. Unsecured Loans In unsecured loans, no collateral is given to the bank. However, banks usually charge a higher interest rate for such loans to exact the borrowed money. Additionally, it is more difficult to get the application approved for unsecured loans as banks are more stringent in their processing. Types of loans Personal loans: One of the primary examples of unsecured loans, personal loans are availed for any personal use. The money can be used for a wedding, travel plan, education, or any emergency situation. You can also avail a personal loan online. Home loans: Home loans are offered by banks to help ease the burden of paying high prices for real estate. Vehicle loans: Vehicle loans are secured loans offered by banks to aid in the purchasing of any motor vehicle. Gold loan: Gold loans offer you money in valuation of the gold you offer as collateral. This is one of the easiest and fastest loan to get. Business loans: Offered by banks and NBFCs to aid borrowers explore business opportunities. The process usually involves a written business plan basis on which the loan amount is disbursed. Education loans: Offered by many banks to aspiring students in order to help them achieve their dreams of higher education. Loan against FD: if you have a Fixed deposit in a bank, you can avail a loan against it in case of financial crisis. Holiday Loan: If touring an exotic destination has been on your mind, you can also buy a holiday loan.