India’s financial sector offers a wide variety of loans to meet different needs—from buying a home to funding education or managing emergencies. Choosing the right loan depends on your requirement, repayment capacity, and eligibility.
Here’s a detailed guide to 25 types of loans available in India and how they work.
🏠 1. Home Loan
For buying or constructing a house.
Long tenure, low interest rates.
🚗 2. Car Loan
Financing purchase of new/used vehicles.
🎓 3. Education Loan
For higher studies in India or abroad.
Secured and unsecured options available.
💳 4. Personal Loan
No collateral, multipurpose loan for urgent needs.
💍 5. Gold Loan
Loan against pledged gold ornaments.
Quick disbursal, higher LTV when gold prices rise.
🧓 6. Pension Loan
Offered to retired individuals against monthly pension.
📈 7. Business Loan
For expanding business, working capital, or equipment purchase.
🛠️ 8. MSME Loan
Special loans for small and medium enterprises.
📊 9. Loan Against Property (LAP)
Secured loan by pledging residential/commercial property.
📱 10. Digital/Instant Loan
App-based loans with quick approval.
🏢 11. Commercial Vehicle Loan
For purchasing trucks, buses, and commercial vehicles.
⚡ 12. Top-Up Loan
Extra loan amount on an existing home loan.
🏦 13. Balance Transfer Loan
Shifting loan to another lender for lower rates.
🧾 14. Consumer Durable Loan
For buying electronics, furniture, and appliances.
💡 15. Two-Wheeler Loan
For purchasing bikes and scooters.
🌾 16. Agricultural Loan
For farmers to buy seeds, fertilizers, and machinery.
🌍 17. NRI Loan
Designed for Non-Resident Indians for property or personal needs.
👨👩👧 18. Family Loan (Co-operative)
Loans offered by co-operative societies to members.
🏥 19. Medical Loan
For meeting urgent healthcare expenses.
👩💼 20. Working Capital Loan
Helps businesses manage short-term operational expenses.
🔄 21. Overdraft Facility
Flexible borrowing linked to savings/current accounts.
📃 22. Loan Against Fixed Deposit (FD)
Borrow money by pledging fixed deposits without breaking them.
🪙 23. Loan Against Mutual Funds/Shares
Raise funds against your investments.
🏘️ 24. Home Improvement Loan
For renovation, repairs, or interior work.
✈️ 25. Travel Loan
Finance your domestic or international holidays.
How to Choose the Right Loan?
Identify Your Need: Emergency, education, housing, or business.
Check Collateral Requirement: Secured vs. unsecured.
Compare Interest Rates: Choose the lowest rate for your credit profile.
Understand Repayment Capacity: Avoid over-borrowing.
Consider Processing Speed: Some loans take longer to approve.
FAQs
Q1: Which loan is best for emergencies?
Personal loans, gold loans, and digital loans are best for quick cash needs.
Q2: Which loan has the lowest interest rates?
Home loans and education loans usually have the lowest rates.
Q3: Can I take multiple loans at the same time?
Yes, but approval depends on your repayment capacity and credit score.
Q4: Which loans are tax-deductible?
Home loan (principal + interest) and education loan (interest) offer tax benefits.
Q5: Are instant loan apps safe?
Only borrow from RBI-registered NBFC-backed apps to avoid scams.
Published on : 2nd September
Published by : SMITA
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed
https://play.google.com/store/apps/details?id=com.vizzve_micro_seva&pcampaignid=web_share