Types of Bank Loans in India: Friends, in today’s article, I am going to tell you about ‘Types of Bank Loans in India’. If you want to know about this, please read this post.
Types of Loans
1. Short Term Loan – The time to return the money in this loan is less than one year.
2. Medium Term Loan – The time to return the money in this loan is between 1 year to 3 years or 5 years.
3. Long Term Loan – The time to return the money in this loan is more than 5 years.
Types of Bank Loans in India
1. Personal Loan
A Personal loan means taking a loan for your personal work, such as giving children’s school fees or purchasing an expensive gift or taking a home together, the loan taken for all these needs is a personal loan. In fact, every bank has its own interest rate. In today’s time, the State Bank of India (SBI) is charging annual interest ranging from 12.50% to 16.60% for the personal loan, HDFC BANK is charging annual interest of 11.25% to 20.75%. However, the interest rate of the personal loan is higher than all loans. For a personal loan, the bank does not ask for a lot of documents Just seeing the salary slip, the lender gives you a loan. You can get a personal loan for up to five years.
2. Gold Loan
You can get a loan by placing your gold in the bank locker. In this kind of loan, the amount is given according to the quality of gold deposited by you and its value. By the way, it is usually seen that the bank gives 80% of your gold price to you as a loan. The gold loan usually takes people in the state of Emergency. The interest on this loan is lower than the personal loan. At present, the interest rate for the gold loan is 10.55% in SBI, Axis bank 10.49% and 11.50% in HDFC.
3. Security Loan
In this loan, the bank gives loans to your security papers. But the question arises, what is the security paper? If you have already invested in a mutual fund, demand share government scheme, then this is your security paper which keeps the bank lending to you. If you can not pay the loan, the bank confiscates your security paper and sells it in the market. You can pledge your security paper to the bank. The bank gives you the facility of overdraft on the basis of this security paper. Overdraft means that you can withdraw money from your account even if there is zero balance in your account, this is called an overdraft.
4. Property Loan
Property loan is a loan in which the bank mortgages your property papers. This loan can be received for a maximum of 15 years. Normally 40% to 50% of the cost of the property is available to the loan.
5. Home Loan
The loan which is taken to buy a house is called a home loan. You do not take loans only to buy the house, but you can take a loan from the bank by adding house rent registration stamp duty and many other costs. The bank gives loan from 75% to 85% of the total cost of building the house. To make the rest of the money in the house, you have to do it yourself. Suppose you took a loan for a plot which costs Rs 10 lakh. For this, you have to deposit 30 percent or three lakh in the bank. The bank will give you the rest of the money. The time to repay the home loan is from 5 years to 20 years. In addition to interest in home loan conditions, there are many other types of fees, such as processing fee adjustment charge, legal fees assessment fee etc.
6. Education Loan
It is not impossible for every student to study in his favorite institute. If someone wants to study at Oxford University and does not have enough money, then in such a situation he can take an education loan from the bank. Before giving an education loan, the bank determines its re-payment. The bank lends to the same student who has the ability to return. A guarantor is required to take an education loan. This can also be a relative of the student.
Also Read: Home Loan Process Step by Step 2019
7. Vehicle or Car Loan
When you take money from a bank to buy a vehicle, it is called a vehicle or a car loan. A car loan is given on a fix or floating rate just like every loan. Fix rate means that you have to pay the full loan at the rate at which the interest rate is at the time you are taking the loan. And the flooring rate means that if the interest decreases or increases after taking a loan, then you have to pay accordingly. Unless you refund the entire loan amount to the bank in the car loan, Until then the owner of your car remains the bank.
8. Corporate Loan
When the bank gives loans to big people such as Ratan Tata, Reliance Industries, Tata Birla, it is called the corporate loan. According to the existing rules, the bank can give up to 55% of its core capital loan as a loan to a large company. But considering the recent default case increase, the RBI has said that by the first of April 1, 2019, such a rule will come into force when the bank will give only 40% of its capital as a loan to any one corporation.
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