As you did not know that people need loans or loans to meet their different needs. They take it from a bank or financial institution, and then repay the loan and interest rate on that bank or financial institution. So today, with this post of Types of Bank Loans in India, we are trying to tell you how many types of loans there are?
There are three types of loans over time
1. Short-term Loans – The repayment period for this loan is less than one year.
2. Medium Term Loans – The repayment period for this loan is between one to 3 years or 5 years
3. Long-Term Loans – The repayment period for this loan is more than 5 years
Of the Types of Bank Loans in India, let’s talk about how many types of loans are offered to banks or financial institutions in India?
Types Of Bank Loans :
1. Personal Loan :
A personal loan or unsecured loan means a loan that you take out for yourself. Although all the loans are self-sufficient but personal loan means borrowing your own work, such as paying the kids school fees or buying an expensive gift or taking any household items, then all these needs are met. Loans taken out are personal loans. In fact, each bank has its own interest rate. As of today, the State Bank of India (SBI) charges an annual interest rate of 12.50% to 16.60% on personal loans, while HDFC Bank charges an annual interest rate of 10.99% to 20.75%. By the way, the interest rate on personal loans is higher than for other loans. With a personal loan, the bank does not ask for more documents from you, as soon as you see your pay slip, give you a loan. You can get a personal loan for up to five years.
2. Gold Loan :
Gold loan is the process of taking cash in return for keeping gold in the bank. You have to keep your gold in the locker of the bank. You get this type of loan on the quality and price of the gold deposited. It has been observed that the bank gives you loan up to 80% of the value of gold. Gold loans are often taken by people to meet emergency needs. The interest rate charged on this loan is lower than that of a personal loan. Presently sbi is charging 11.5% p.a. interest rate on gold loan.
3. Property Loan :
Property loan is a loan in which the bank gives mortgage of your property papers. This can be repaid in a maximum of 15 years. Usually the loan amount or amount is 40% to 60% of the amount mentioned in the papers.
4. Home Loan :
The loan taken for buying a house is called home loan. You do not take a loan only to buy a house, but you can take a loan by adding the cost of building the house, registration stamp of the house, duty charges and many more. The bank gives loans ranging from 75% to 80% of the total cost of building a house. You have to do it yourself to make the rest of the money a house. Suppose you have taken a plot to build a house whose cost is ten lakh rupees. For this, you will have to deposit only 30% of it i.e. 3 lakhs in the bank, the bank will give the rest of the money to you. The home loan repayment time ranges from 5 years to 20 years. In addition to the interest, many other types of fees are included in the terms of the home loan, it is called processing fee, legal fee, assessment fee etc.
5. Education Loan :
It is not possible for every student to study at a favorite institution. If one wants to study at Oxford University, the fees are so great that it becomes very difficult to imagine going there to study. In that case, he could take out an education loan from a bank. Before granting an education loan, the bank decides to repay it. The bank borrows the same student who has the ability to repay it. The bank works in two ways to know the potential of the student. Whether the student’s salary is considered or the university student’s loan is paid, what is the effect? This is also evident. Upon graduation, the student can repay the loan. Proof is required to obtain an education loan. It can also be a relative of the student. As of today, the central bank of India charges 10.70% interest on an education loan of more than 7.50 lakhs and 9.95% of p.a. with an education loan of up to Rs.7.50 lakhs.
6. Car Loan :
Even if you want to buy a car, you can still borrow from a bank. Suppose you want to buy a car worth 8 lakh rupees. Suppose you have three lakh rupees, then you can take out a bank loan with the remaining five lakh rupees by paying it off as a down payment. You will also pay this off on the basis of monthly installments and the bank will charge you interest.