Today, personal loans are among the most flexible financial products to fulfil a host of purposes that one could think of. Whether it be an urgent or planned expense, there are majorly different types of personal loans to meet the various situations. We look at these loans as well and are popular in India as they make the whole process super flexible for the borrowers.
Whether it is about financing a fairytale marriage, recovering from medical contingencies, or even debt consolidation, personal loans are customised solutions. In case you require a personal loan, then below is the list of specific kinds of personal loans that can be helpful to understand which type will work best as per your financial requirements.
Different Types of Personal Loans Available in India
- Unsecured Personal Loans
- Debt Consolidation Loans
- Wedding Loans
- Travel Loans
- Medical Loans
- Home Renovation Loans
- Education Loans
- Consumer Durable Loans
- Top-Up Personal Loans
- Professional Loans
1. Unsecured Personal Loans
One of the common types of personal is an unsecured personal loan in this you do not require any type of collateral. It can be used for multiple purposes, including medical expenses, vacations, and paying for home repairs. An unsecured personal loan is based on your income, creditworthiness, and capacity for your repayment.
2. Debt Consolidation Loans
If you have multiple loans or credit card debts, consolidating them into one loan can be a smart financial move. A debt consolidation loan combines all your debts into a single loan with one interest rate and repayment plan. This can help simplify finances and potentially reduce interest costs, making debt management more efficient and stress-free.
3. Wedding Loans
In India, wedding expenses are the major expense for any family, often involving multiple ceremonies and large gatherings. This type of loan helps the families manage the cost of the wedding without often involving multiple ceremonies and large gatherings Whether it’s for booking venues, catering, covering, etc.
4. Travel Loans
If you are planning your holiday beyond your savings, a travel loan can make it possible, this type of personal loan is ideal for financing a vacation, honeymoon, or business trip, this will cover all types of expenses such as flights, accommodation, and sightseeing, allowing you to enjoy your trip stress-free.
5. Medical Loans
Medical emergencies can hit you anytime and often require immediate funds. This loan covers your hospital bills, medicines costs, treatment, and surgeries, With minimal documentation and quick approval, these loans are a financial lifeline in times of need, since, medical expenses can be unexpected, these loans are flexible repayment options.
6. Home Renovation Loans
Planning to renovate your home? Home renovation loans provide the necessary funds to upgrade or remodel your property. Whether it’s a small repair or a large-scale renovation project, this loan ensures you have enough money to enhance your home’s value without using your savings. These loans are specifically designed to cover costs like painting, redoing interiors, or constructing new additions.
7. Education Loans
Education loans are often associated with students, but there are personal loans available to cover education expenses for professionals and individuals looking to enhance their skills. From financing part-time courses to higher education, these loans can help cover tuition fees, examination costs, or other related expenses. They make pursuing professional growth and career advancement easier without worrying about immediate financial strain.
8. Consumer Durable Loans
Consumer durable loans are offered for purchasing household goods like electronics, appliances, and gadgets. Instead of paying upfront for expensive items such as refrigerators, TVs, or smartphones, you can use a consumer durable loan to pay in easy monthly instalments. This allows you to access the latest technology without putting too much pressure on your monthly budget.
9. Top-Up Personal Loans
If you already have a personal loan but need additional funds, you can opt for a top-up loan. A top-up loan allows you to borrow extra money on top of your existing loan. It’s a convenient option for those who need more funds during the repayment period of their current loan, offering flexibility without having to apply for a new loan.
10. Professional Loans
These loans are tailored for self-employed professionals such as doctors, lawyers, architects, and consultants. Professional loans provide funds for business expansion, equipment upgrades, or working capital requirements. They are designed to cater to the specific financial needs of professionals, ensuring their practice or business can grow without financial hurdles.
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Eligibility criteria for personal loan
| Particulars | Salaries | Self-Employed |
| Age limit | 18 – 60 years | 21 – 65 years |
| Minimum income | ₹15,000 per month | ₹15 lakh per annum |
| Minimum Work Experience / Business Continuity | At least 1 year (some lenders may require longer work experience) | At least 3 years of business continuity (some lenders may require a longer period) |
| Credit Score | Preferably 700 and above | preferably 700 and above |
FAQs
1. What is a personal loan?
A personal loan is a type of unsecured loan that allows you to borrow money for personal needs like medical emergencies, weddings, travel, education, home renovation, or any other financial requirement.
2. Who can apply for a personal loan?
Anyone salaried and self-employed individuals can apply for a personal loan. But they should meet the eligibility criteria first, such as age, income, and credit score.
3. What is the minimum income required to apply for a personal loan?
For salaried individuals, lenders typically require a minimum monthly income of ₹15,000, while for self-employed individuals, the minimum annual income is usually around ₹15 lakhs. This may vary across lenders.
Also, read:
- Personal Loan for Women
- How to get an Instant Small Cash Loan on Aadhaar Card?
- How to Get an Instant Personal Loan Without Income Proof?
- Personal Loan Preclosure Procedure
This post is also available in: हिन्दी (Hindi)
