Whether it’s buying a home, funding education, handling emergencies, or expanding a business — loans can help you move forward. But with so many types of loans available in India, how do you know which one suits your needs?
At Vizzve Finance, we help you compare loan options smartly so you can choose what works best. This guide breaks down the most popular loan types, their features, and who they’re ideal for.
🏦 Types of Loans in India – At a Glance
| Loan Type | Ideal For | Secured/Unsecured | Interest Rate (Approx.) | Tenure |
|---|---|---|---|---|
| Personal Loan | Emergencies, Travel, Debt | Unsecured | 10%–24% | 1–5 years |
| Home Loan | Buying/constructing house | Secured | 7%–10% | 10–30 years |
| Education Loan | Higher studies in India/abroad | Secured/Unsecured | 8%–15% | Up to 15 years |
| Business Loan | Start or grow a business | Secured/Unsecured | 9%–20% | 1–10 years |
| Gold Loan | Short-term urgent cash | Secured (Gold) | 7%–12% | Up to 3 years |
| Vehicle Loan | Buy 2W or 4W | Secured (Vehicle) | 8%–12% | 1–7 years |
| Credit Card Loan | Quick funds via card | Unsecured | 24%–36% | Short term |
🔍 How to Choose the Right Loan
1. Purpose of the Loan
Medical emergency? Go for a personal loan or credit card loan
Buying a home? Choose a home loan
Studying abroad? Consider an education loan
Expanding business? Opt for a business loan
Have gold assets? A gold loan offers lower rates and quick access
2. Repayment Capacity
Always check your EMI affordability using Vizzve's EMI Calculator. Over-borrowing leads to debt stress.
3. Collateral Requirement
No assets? → Look for unsecured loans
Willing to pledge? → Go for secured loans like home, gold, or vehicle loans
4. Loan Tenure
Short-term need → Personal/Credit Card/Gold Loan
Long-term goal → Home or Education Loan
✅ Vizzve’s Smart Loan Recommendation Tool
Vizzve Finance offers a personalized loan matcher based on:
Your credit profile
Repayment ability
Loan purpose
You can compare offers, view real-time interest rates, and apply instantly — 100% paperless.
⚠️ Watch Out For…
Hidden charges (processing fees, prepayment penalties)
Unlicensed lenders
Misleading low EMI traps (long tenure = high interest)
🙋♂️ FAQs
Q1. Which is better — secured or unsecured loan?
Secured loans offer lower interest rates, but require collateral. Unsecured loans are faster but costlier.
Q2. Can I prepay my loan early?
Yes, but check for prepayment penalties. Many personal loans allow part-prepayment after 6 months.
Q3. Which loan is best for students?
An education loan from a bank or NBFC, with flexible repayment options and moratorium period.
Q4. Can I take more than one loan at a time?
Yes, but your debt-to-income ratio must stay healthy. Too many loans affect your CIBIL score.
Q5. How can Vizzve help me choose the right loan?
Vizzve helps compare loans from trusted lenders, checks eligibility, and gets you fast approval with zero paperwork.
published on 2nd july
Publisher : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.