Personal loans are a one-size fits all solution for any uncategorised and contingent money needs. This can happen to any of us, often arising due to reasons such as a health emergency, marriage expenses or even a fancy vacation. Part of the appeal of personal loans lies with the fact that, unlike specific loans like a home loan or a student loan, these loans can be utilised for anything and everything under the sun. Also, more often than not, when availing the from an instant personal loan app, they have zero, or very minimal collateral security requirements. For a better understanding of personal loans in India vary in a more comprehensive manner, read on.
As you may be well aware, as the fintech landscape evolves, several new and modified forms of availing personal loans have come up. Now an individual can get a personal loan instantaneously and for a variety of purposes. The nature and formalities of personal loans vary according to the needs of different individuals. Almost all banks and other financial institutions offer different kinds of personal loans to suit the needs and requirements that different customers may have. Some of the popular categories of personal loans are mentioned below:
1. Based on collateral or security requirements
On the basis of the requirement of a collateral or security in the form of your car or house et al, a personal loan can be of 2 types:
a. Unsecured personal loans
b. Secured personal loans
While the latter is usually available at a comparatively lesser interest rate, the former is more difficult to get and usually carries a higher rate of interest owing to the higher risk it poses to the lending organisation.
2. Based on specific objective or needs of the individuals
With Covid-19 in our midst, many of us, both Covid patients and otherwise, are seeing healthcare infrastructure get squeezed to its limits, while costs continue to rise. A medical loan in such scenarios can be crucial, and is often a purpose for a personal loan at many institutions. Owing to the very broad scope of application for personal loans, there are multiple other types of “specific” personal loans are also available in the market. Recapping some of them:
- Medical loans
- Shopping loans,
- Travel loans,
- Wedding Loans,
among others. These loans are instantly available without much hassle of paperwork and formalities.
3. Based on Employment status of the costumer
Personal loans and the interest rates offered can also vary according to the nature of employment. For instance, demarcations and changes in terms and conditions may be made between salaried professional and government employees. The difference may be in terms of rate of interest, maximum amount of disbursal, documentation requirement etc.
As we have already discussed, there are a variety of types of personal loans available in the market, to fit the bill on an individual basis, and based on different factors like the security requirement, the purpose or objective et al. The eligibility criteria and interest rate vary according to the requirement of the customer. With medical loans being the most sought after personal loans right now, we do hope everyone remains in good health.
Having said that, the market features instant personal loans of all these types, and more. Apps have tie-ups with brands like Amazon, Flipkart, MakeMytrip, borrowers can avail additional benefits and discounts while enjoying instant loans ranging upto the amount of 2 Lacs with no unnecessary paperwork. In addition to all this, with an exceptionally high approval rate, loan amounts are disbursed instantly, directly into the individual’s personal bank account. The way to put an end to your financial turbulence is simple; log onto a personal loan website or download an app, and an instant personal loan is just a few clicks away.